Documents Required For Income Tax Return (ITR) Filing In India
Documents Required For Income Tax Return (ITR) Filing In India
When filing an income tax return, you must submit certain documents that serve as proof of income for the specific financial year. It is mandatory for anyone liable to pay Income Tax to provide these documents to the Income Tax Department. The types of required documents can vary based on the sources of income, such as business profits, investment returns, or salary earnings. Preparing and organising these documents in advance can help taxpayers streamline the ITR filing process and ensure they meet all tax regulations.
Get expert help with your ITR filing from IndiaFilings today—ensure accuracy and effortlessly maximize your deductions!
Get Started!Important Documents Required for Filing ITR
Below, we offer a checklist of crucial documents you should have before beginning your ITR filing for FY 2023-24 (AY 2024-25).
When filing your Income Tax Return (ITR), you must submit specific documents that prove your income during the fiscal year. Every taxpayer, regardless of their income, must furnish these documents to the Income Tax Department.
The necessary documents vary depending on your income source, whether business profits, investments, or salary. Organizing these documents in advance can simplify your ITR filing process and ensure you comply with tax regulations.
Here is a list of essential documents you should prepare before filing your ITR for FY 2023-24 (AY 2024-25):
- PAN Card: Essential for filing your ITR, PAN is needed for TDS deduction and must be linked with your bank account to receive any tax refund. Although a PAN is typically required, recent amendments allow you to file your ITR using your Aadhaar number instead.
- Aadhaar Card: Mandatory under Section 139AA of the Income Tax Act, you must provide your Aadhaar details when filing. If your Aadhaar is pending, the enrolment ID will suffice. Linking your PAN with Aadhaar facilitates the online verification of your tax return.
- Form 16: This form is crucial for salaried individuals, detailing salary and TDS information. It consists of two parts: Part A (employer and tax details) and Part B (salary breakdown and deductions).
- Form-16A, Form-16B, Form-16C: These forms cover TDS on non-salary payments, property transactions, and rent, respectively, providing necessary tax deduction details.
- Bank Account Details: Disclose all active bank accounts in your ITR, selecting one as primary for potential tax refunds. These details help verify income disclosures and track significant transactions.
- Bank Statement/Passbook: Shows interest income and other financial details relevant to your ITR.
- Form 26AS and AIS/TIS: An annual tax statement that records all taxes paid against your PAN, ensuring you claim the correct tax credits. The AIS provides a comprehensive view of your tax details, while the TIS offers a summarized version to aid in the pre-filling of returns.
- Home Loan Statement: Necessary for those with home loans, this details the principal and interest repaid and is required for filing.
- Tax Saving Instruments: Documents related to tax-saving investments like FDs and ELSS are crucial for claiming deductions under Section 80C.
- Capital Gains Details: If you’ve sold assets like shares or property, keep the related documents handy for reporting gains or losses.
- Rental Income: Document your rental income or rent payments, although these do not need to be submitted with the ITR but should be readily available if requested by your employer or the tax authorities.
- Foreign Income: If you have earned income from abroad, prepare the necessary documentation to claim tax credits or benefits under DTAA agreements.
- Dividend Income: Report any dividend income from shares or mutual funds, with details obtainable from your broker or Demat account.
- Interest Certificate: Maintain certificates for any interest claimed as tax deductions, such as on home loans.
Proper documentation is vital to avoid penalties for incomplete or incorrect ITR filings.
Connect with our tax experts to understand which documents are needed for your specific situation.
Documents are Required to Claim a Deduction u/s 80C to 80U of Income Tax While filing ITR
When filing your Income Tax Return (ITR), several key documents are required to claim deductions under sections 80C to 80U of the Income Tax Act. Organizing these documents in advance can help streamline the process and avoid any last-minute complications:
- Home Loan Statement: This statement is crucial for claiming deductions on the principal amount repaid up to Rs. 1.5 lakhs under section 80C. Interest deductions up to Rs. 2 lakhs are also claimable for self-occupied properties, and in the case of let-out properties, a loss of up to Rs. 2,00,000 can be claimed and carried forward. Sections 80EE and 80EEA provide additional benefits for first-time homebuyers under certain conditions.
- School Fee Receipt: Receipts for tuition fees paid for a maximum of two children can be used to claim deductions under section 80C. Ensure these receipts detail the tuition fee component separately from other fees.
- Contributions to PPF, Life Insurance Premium Receipts: Investments in PPF, life insurance, and 5-year tax-saving fixed deposits qualify for deductions under section 80C, up to a maximum of Rs. 1.5 lakhs. Keep all relevant documents handy.
- Investment in NPS: Contributions to the National Pension System are deductible under section 80CCD to a maximum of Rs. 1.5 lakhs, with an additional deduction of Rs. 50,000 under section 80CCD(1B).
- Donation Receipts: For donations eligible for 50% or 100% deduction under section 80G, ensure you have receipts for donations made through non-cash methods for amounts over Rs 2000.
- Details of Medical Insurance: Premiums paid for medical insurance can be deducted under section 80D. The limits are Rs. 50,000 for policies covering senior citizens and Rs. 25,000 for others. Additional deductions for medical expenses up to Rs 50,000 are available if the parents are senior citizens and not covered by health insurance.
- Education Loan: Interest paid on education loans for higher studies (for yourself, your spouse, or children) can be claimed as a deduction under section 80E from the first year of repayment to a total of eight years.
- Receipts of Other Investments: Keep receipts for any other qualifying investments to ensure all eligible deductions are claimed.
Gathering these documents before you start your ITR filing will help ensure a smooth and compliant tax filing process.
Also read Guidelines for Filing ITR-2 for AY 2024-2025
Documents are Required for Capital Gain Income
For accurately reporting and calculating Capital Gain Income on your tax return, it’s essential to gather and prepare the following documents:
Property Sale:
- Sale and Purchase Agreements/Deeds: These documents are fundamental as they contain the sale and purchase prices.
- Cost of Improvement and Transfer Expenses: Document any costs incurred for improving the property and expenses related to its transfer.
- Registration Details: Proof of property registration, which can support claims of ownership and timelines for tax purposes.Gold/Silver Sale:
Similar documentation is needed for the property, including receipts or bills detailing the purchase price, sale price, any costs of improvements, and expenses related to the sale.
Equity Shares Sold:
Capital Gain Statements from Broker: These statements will provide detailed information on the purchase and sale of shares, including dates and amounts, which are essential for calculating capital gains.
Mutual Funds Sold:
- Capital Gain Statement of Mutual Fund: This statement will outline the gains or losses realized from the sale of mutual fund investments.
- Having these documents organized and readily available will facilitate the accurate calculation of capital gains and ensure compliance with tax regulations.
Documents are Required for Income from House Property
To accurately report income from house property on your tax return, you need to gather and present the following essential details:
- Address of the Property: The complete location details of the property generating income.
- Co-owner Details: Information about any co-owners, if applicable.
- Rent Agreement: If the property is rented, a copy of the rental agreement should be included.
- Ownership Details: Documentation confirming your ownership of the property.
- Interest Certificate for Loan: If you have a mortgage or loan on the property, an interest certificate from the bank or financial institution is required.
- Pre-Construction Interest Details: Information on any interest paid before the construction or purchase was completed, if applicable.
- Municipal Tax Receipts: Receipts for municipal or property taxes paid during the year.
- Rental Income Details: A breakdown of the rental income received, along with any related expenses.
These documents are crucial for making a full and truthful disclosure of your income from house property and ensuring compliance with tax regulations.
Documents Needed by a Businessman or Professional While Filing ITR
When filing your Income Tax Return (ITR) as a businessman or professional, the documents and information required vary depending on your chosen tax scheme and the nature of your earnings:
For Those Opting for the Presumptive Taxation Scheme:
Under Section 44AD (for businessmen) or Section 44ADA (for professionals), you need the following:
- Gross Turnover/Receipts: The total revenue from your business or professional services during the financial year.
- Gross Profit: The profit earned before any deductions.
- Other Financial Details: Sundry debtors, Sundry creditors, stock in trade, and cash balance at year-end.
- Reconciliation of 26AS: It’s crucial to ensure that the TDS deducted in your business’s name is fully and accurately reflected in your 26AS statement.
For Businesses Not Opting for Presumptive Taxation:
- If your total turnover or sales exceed Rs. 1 crore during the financial year (raised to Rs. 10 crores from FY 2021-22), your accounts must be audited under section 44AB.
- Professionals (such as chartered accountants, doctors, and lawyers) with total receipts exceeding Rs 50 lakhs also need to have their accounts audited.
- In cases where an audit is required, all books of accounts must be maintained accurately and comprehensively.
Filing ITR can be complex, especially with income from multiple sources, which could lead to overlooked deductions and benefits. Consider consulting with tax professionals to ensure a thorough and advantageous tax filing process. Book an eCA today for expert assistance and a hassle-free tax filing experience.
Do I Need to Attach the Document with the Income Tax Return?
When filing your Income Tax Return (ITR), it’s important to note that the process is entirely paperless, so you do not need to attach any documents. However, keeping all income-related and tax-deductible documents safe for up to 7 years is crucial. These records are essential if your tax file undergoes detailed scrutiny by the Income Tax Department.
As the ITR filing season for FY 23-24 is already underway, it’s wise to file your return promptly to ensure smooth processing and to avoid any last-minute rush. For added convenience and assurance, consider utilizing CA-assisted ITR filing services, which are readily available online. This can help streamline your filing process and ensure everything is completed accurately.
Conclusion
In conclusion, when filing your Income Tax Return (ITR) in India, you don’t need to attach documents, but it’s important to keep them organized and accessible. This includes keeping track of documents like PAN and Aadhaar cards, Form 16, and interest certificates, which support your tax claims. Make sure to store these records for up to seven years in case of an audit.
As you prepare for this year’s tax filing, consider using IndiaFilings expert services to ensure a smooth and accurate process, making sure you claim all the deductions and benefits you’re entitled to.
Get Started!