Sharekhan Blog

Know the Documents Required for ITR Filing

  • Apr 18, 2024

ITR Filing

Income Tax Return (ITR) filing is a significant process when citizens update the government with their income and tax liabilities. Every taxpayer, whether a salaried individual, professional or business, is required to file their income tax returns annually.

Documents Required for ITR Filing

Filing Income Tax Returns (ITR) is mandatory for every taxpayer. The documents required for ITR filing vary slightly for individuals earning from different sources. 

Documents Required for ITR Filing with Salaried Income

The necessary documents required to file ITR online in case of a salaried citizen are:

1. The employer can provide Form 16 and requires the details of your salary, allowances, deductions, and the tax deducted at source (TDS) on your salary income to be filled in.

2. Monthly or quarterly salary slips are mandatory while filing ITR. Details like earnings, deductions and any other allowances received during the financial year are required from the salary slips.

3. Bank statements for all the salary accounts are necessary as these statements help verify income.

4. Investment details, if any, to avail of tax deductions under various sections like section 80C (e.g., Provident Fund contributions, Life Insurance Premiums, Equity Linked Savings Schemes), Section 80D (health insurance premiums), etc., are also required to file for the ITR.

5. Form 26AS is a tax statement that provides details of TDS deducted from your salary income, as well as other income sources like interest income, dividends, etc. It's necessary to cross-verify the TDS details mentioned in Form 16 with those in Form 26AS for correctness.

6. Having both your aadhaar card and PAN card is essential for ITR filing. Your PAN should compulsorily be linked with aadhaar as per the latest regulations.

7. Keep your tax returns from previous years as it will help for reference and to ensure consistency in reporting.

Documents Required for ITR Filing with Income From Other Sources

The documents required for filing Income Tax Returns (ITR) when you have income from other sources typically include:

  • Forms 16A/16B/16C are provided by people other than your employer, such as banks or tenants, for tax deducted at source (TDS) on income like interest on savings accounts, rental income, etc.
  • Bank statements showing interest earned on savings accounts, fixed deposits or any other investments.
  • Rent receipts are also needed to calculate rental income and claim deductions like House Rent Allowance (HRA) or standard deduction.
  • Interest certificates for income from investments like fixed deposits, recurring deposits, bonds etc., are also needed while filing ITR for income from other sources. You may need interest certificates as well.
  • Additional sources of income, like dividends, capital gains, winnings from lotteries, etc., should also be reported.
  • Documents proving investments made under various sections, like 80C, 80D, etc., are needed for claiming deductions.
  • Loan statements, if any, for which you are claiming deductions (like home loan interest).
  • Form 26AS shows the details of tax deducted from your income by deductors (employers, banks, tenants, etc.), which can be cross-verified with records.
  • Income generated from assets such as property, land, etc., should be documented.
  • Any other relevant documents depending on your specific sources of income such as invoices, contracts, etc.

 Documents Required in Case of Capital Gains

Documents required for filing Income Tax Returns (ITR) when you earn from capital gains are:

  • Purchase and Sale Deeds of the asset, such as property, stocks, mutual funds, etc.
  • Statements from brokers showing the purchase and sale transactions of stocks, mutual funds or other securities.
  • Invoices showing any expenses related to the acquisition of the asset, such as brokerage fees, stamp duty, registration charges, etc.
  • Sale Invoices such as brokerage fees, transaction charges, etc.
  • Capital Gain Statement that includes details of the purchase price, sale price, expenses incurred and net gain or loss.
  • Form 16A/16B/16C showing Tax Deducted At Source (TDS), if applicable.
  • Bank statements that show transactions related to the purchase and sale of the asset, including payments and receipts.
  • Records showing any adjustments made for inflation using the cost inflation index (CII) for calculating long-term capital gains tax.
  • Investment proofs showing investments made under capital gains tax-saving schemes like Capital Gains Account Scheme (CGAS). Any other relevant documents, depending on the nature of the capital asset and transactions involved, additional documents such as valuation reports, gift deeds, inheritance documents, etc., may be required.

Conclusion

To summarise, ITR filing is a fundamental responsibility of every taxpayer and plays a crucial role in maintaining transparency in the financial ecosystem. Through ITR filing, individuals not only fulfil their civic duty but also avail themselves of various benefits such as claiming tax refunds, applying for loans, and establishing financial credibility.

Moreover, proper documentation not only facilitates a smooth filing process but also minimises the risk of errors and potential audits. Adherence to the document requirements not only fulfils legal obligations but also fosters transparency, accountability, and trust in the taxation system, benefiting both individuals and the nation's economic ecosystem.

Team Sharekhan
by Team Sharekhan

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