What Documents Do You Need for Filing Income Tax Returns in India?

Filing Income Tax* returns in India requires a lot of planning and prior preparation. For this reason, The Government of India provides four months at the end of every financial year to prepare and gather all the documents required. You need to possess all your identification proofs, documents from your employer and the bank, and a few other proofs of your investments. If you are aware and clear about the documents required for filing an income tax return, the process becomes simple, easy, and less time-consuming. So, here is a detail about it for your reference.

Documents Required For Income Tax Return

Filing an income tax return will be a perfect record of your income tax payment, eligible deductions and exemptions, and the possible refund applicable as a credit.

Before collating the documents, ensure to find the right ITR form and link your Aadhar card and PAN to complete filing ITR successfully. Let us classify the income tax return documents under specific heads for better understanding.

1. Documents necessary for salaried employees
   
   

   • PAN card - The Personal Account Number serves as proof of identification for every taxpayer in India.

   • Form 16 - It is a Tax Deduction at Source (TDS) certificate issued by your employer based on the tax paid based on your salary. It will include your name, address, PAN, employer details, challan numbers, etc.

   • Monthly payslips - Your monthly payslip from the employer will have the details of your basic salary, leave travel allowance, house rent allowance, contribution to provident fund, arrears earned, etc. It is important, especially while claiming applicable exemptions.
     
     

2. Documents on interest income
   
   

   • Bank statement - Details of your savings account and the interest earned will help you furnish the information required to claim deductions under Section 80TTA.

   • TDS certificate provided by banks - The interest you earn from a savings account, fixed deposit, recurring deposit, and other post office schemes are classified under "Income from other sources". Hence, it is completely taxable. Therefore, the TDS certificate from banks will help you provide details of such income and tax paid on your behalf.
     
     

3. Documents for availing tax deductions
   
   

   • Life insurance plan - A life insurance policy in an individual's life is important concerning the family's financial security. Therefore, the government has provided provisions to claim deductions on premiums paid annually to encourage such investments. A life insurance plan for such benefits can include comprehensive life insurance plans such as the guaranteed1 return plan and other traditional plans such as the term insurance.
     
     Tata AIA life insurance policy has introduced customisable, comprehensive solutions for every policyholder's benefit to ensure maximum protection and enhanced financial assistance with tax* benefits. It is important to preserve these policy documents for filing ITR.
     
     
   • Investments in PPF, ELSS, NSC, etc., - Tax saving investments made in Public Provident Fund, Equity Linked Savings Schemes, National Savings Certificate, etc., qualify for tax deductions under Section 80. You can diversify your investment portfolio and receive different types of payouts such as a market-linked return, regular income, etc. while saving on tax. And, if you feel investments and insurance is important for your family's financial security, then investing in financial products such as the ULIP can be an option to consider.
     
     
   • Repayment of housing loan principal and interest paid - If you have availed of a housing loan, you can claim deductions on the repayment of the principal amount under Section 80C and the interest paid under Section 24. Therefore, as a primary responsibility, collect the loan statement from your bank detailing the breakup of your principal repayment and interest.
     
     
   • Children's school fees - The Government of India has also introduced tax* benefits on the amount spent towards your child's education to promote a higher literacy rate. Therefore, you can claim a deduction on tuition fees paid to schools, colleges, or other educational institutions. Preserve the receipts for future references.
     
     
   • Charges on stamp duty and registration - If you have constructed or purchased a new house, then the charges on stamp duty and registration made towards the transfer of the property qualify for tax deduction under Section 80C.
     
     
   • Education loan interest payments - If you have taken an student loan for yourself, your children, or even your spouse, you can benefit from a tax deduction on the interest paid for the same under Section 80E. However, the principal portion of the education loan does not qualify for the tax benefit.
     
     
   • Statements related to stock trading - It is important to hold the documents related to your shares purchases and transactions while filing ITR. Depending on the type of gains, it will either be exempted or taxed under capital gains.
     
     

4. Form 26AS - Form 26AS is a document of proof that states the tax paid to the Income Tax Department on behalf of a deductor to the Income Tax Department. It is available as a soft copy on the official website of the Income Tax Department.
   
   

   Compiling these documents will help you with filing the ITR. It is important to note that the total of deductions based on the investments mentioned above qualifies for tax deduction up to INR 1.5 Lakh under Section 80C.
   
   
   

Conclusion

Filing ITR is a moral duty. It is a well-furnished document of the tax paid and the applicable tax* benefits at a glance. So, it is important to know the different documents required to file the ITR. We have seen a detail about it all. However, there are no documents to be attached with the income tax return while submitting the form. You can utilise it in case of any discrepancies later. Therefore, make sure you get these documents on time and preserve it for all your tax-saving needs!

L&C/Advt/2022/Mar/0589