Filing for Income Tax Return is an annual occurrence and it’s important for each taxpayer to understand which documents are needed for filing ITR. Apart from all the fundamental documentation, there has got to be complete account of all the investments made by the individual with are subject to tax deductions.
For people already filling the form for years, it’s a standard knowledge but even then, it can be hard to keep track of all the necessary documents required to file ITR. Every year there are some changes which are important to track for a taxpayer.
For individuals filing for ITR for the first time in FY 2019-2020 and wondering what are all the documents required for e-filing income tax return, here is a list of all the documents which you will need to assemble before you start to E-File ITR.
1. Choosing the applicable ITR form
Taxpayers need to choose the ITR form applicable to them for the AY 2019-20.
There is a total of 7 basic ITR Forms— ITR 1 to ITR 7. All the forms are further divided into different sub parts. The taxpayer, individuals or company will ought to select the form which is applicable for them then follow the provided instructions to fill them put accordingly.
2. Link Aadhaar with PAN
It is mandatory for taxpayers to link Aadhaar with PAN for the AY 2019-20 on or before the filing of tax returns.
3. For Salaried Employees
If you’re a salaried employee, gather these documents to e-file your income tax returns in India. Undergo this list to check the documents you’ll need to do your taxes.
-Form-16 issued by your employer
-Month wise salary slips
From the AY 2019-20, it’s essential to collect the information on all taxable allowances received and therefore the amount claimed exempt out of such allowances e.g., house rent allowance, leave allowance , etc. and disclose the same in the IT return.
4. Documents associated with interest income
-Bank statement/passbook for interest on a savings account.
-Interest financial statement for fixed deposits.
-TDS certificate issued by banks and others.
5. Form 26AS
Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This can be provided by the Income Tax Department.
It shows details of tax deducted on your behalf by deductors, details on tax deposited by taxpayers and tax refund received within the financial year. This Form will be accessed from the I-T Department’s website.
6. Section 80 Investments
Section 80C investment documents. An investment made under PPF, NSC, ULIPS, ELSS, LIC qualify for deductions under Section 80C.
7. Documents Required To Assert The Subsequent Expenses as Deductions
Keep these documents at hand to assert the subsequent expenses as deductions –
-Your contribution to Provident Fund
-Your children’s school tuition fees
-Life insurance premium payment
-Stamp-duty and registration charges
-Principal repayment on your home loan
-Equity Linked Savings Scheme/Mutual funds investment
The maximum amount which will be claimed under Section 80C is Rs 1.5 lakhs.
8. Other Investment Documents
Interest paid on housing loan: Interest on housing loan is eligible for tax saving up to Rs 2,00,000. this is often for a self-occupied house. For let out or deemed let out property, there’s no limit of interest on housing loan eligible for tax saving till FY 2016-17.
From FY 2017-18, the entire loss from house property available for go off against other income is capped at Rs 2 lakhs and thus , interest on housing loan is eligible for tax saving up to Rs 2,00,000 for let out a property moreover.
-Education loan interest payments.
-Stock trading statement: The stock trades that were made during the year could also be taxed under capital gain.
9. Documents Required for Income Tax Returns Filing
The income tax return you file is an ‘annexure less’ return, i.e. no documents or proofs are required to be attached with the returns. The Income Tax Act specifies obtaining certificates and proofs to say deductions, which makes it ambiguous for the taxpayers on whom they need to handover those certificates and proofs. The taxpayers must preserve those certificates and receipts for future references and do not attach or send it to anyone. Just in case an assessing officer (AO) sends a notice requesting documents or clarification about the transactions mentioned within the returns, the taxpayer will need to submit the proofs to the AO.