Income tax return (ITR) is the tax form needed file tax on income with the Income Tax Department, under the Central government. The tax return has a worksheet format which has the income figures on which tax liability of an individual or business house is calculated. ITR has to be filed by all individuals and business houses earning taxable income over a year. The income could be in any form like salary, wages, interests, dividends, capital gains, and so on.
ITR is filed at the end of a financial year (April 1 to March 31). The government gives a 4 months’ window period so that he or she gets ample time to organise and get ready for the entire procedure. ITR filing could be a complex one, given that it requires a list of mandatory documents such as Form 16, Form 26AS and others.
Required documents for filing ITR
Collating all the documents before getting started with the filing process is necessary. It saves you from unnecessary delays and complexities arising due to unavailability of certain official papers. The list of some essential documents needed to file an Income tax return is here-
1. Form 16
It is commonly termed as TDS (Tax Deduction at Source) certificate. For salaried individuals, it is mandatory to provide TDS certificate while filing ITR. The form is a valid proof of income of the employee. It is also evident of the fact that a part of his or her salary has been deducted by the employer to be submitted as tax.
Form 16 has 2 parts in it-
- Part A – The tax amount deducted from the employer’s salary is mentioned here. This part also comprises details such as name, address, PAN of both the employer and employee along with the employer’s TAN details.
- Part B- This part has the split-up of the gross salary detailing allowances, rebates, and so on.
Form 16 is also required for credit cards, loans, etc.
2. Aadhaar card
According to the Income Tax Department, from April 1 2019, Aadhaar card is mandatory for filing ITR and is stated under Section 139AA of the Income Tax Act.
In case the individual has not yet received his or her Aadhaar card, he/she has to compensate with the enrolment ID.
3. Form 26AS
This is a consolidated form of your tax deposits. It has information regarding all tax amount deposited against your PAN. Unlike Form 16, Form26AS is downloadable by the employee as well, from the TDS Reconciliation Analysis and Correction Enabling System (TRACES) website. An individual needs to ensure all tax deductions reflect against his or her PAN before filling IT return.
4. Capital gains statement
Capital gains through a property sale, mutual funds, equity shares, and others have to be reported to the tax department.
5. Investments under Section 80C
Any investment made under Section 80C, 80CCC and 80CCD(1) qualify as tax-saving investments. The following investments come under this umbrella-
- Employees’ Provident Fund (EPF)
- Public Provident Fund (PPF)
- Life Insurance premium paid
- National Pension System (NPS)
- Equity-linked savings schemes (ELSS) investments, etc.
6. Bank, post office and PPF passbooks
These passbooks, providing details of income, such as dividends and interest, is needed while filing ITR. Interest certificates from banks and post office also have to be compiled.
Online process of filing ITR
Just like applying for a credit card online, or using net-banking facilities, e-filing is also a convenient way of proceeding with your ITR filing. The step-by-step guide of how to file ITR online is here-
- Log in to your account from an e-filing website by providing user ID, password, date the date of your birth and captcha code.
- Select ‘Prepare and submit ITR online.’
- Select the necessary ITR form and the assessment year
- Enter all the personal details
- Enter your salary details
- Upload PDF files of the required documents
- Click ‘Submit’
On successful submission, you will receive a notification confirming the success of your ITR e-filing. You will also get an acknowledge form in your email address.
Most of the above mentioned documents, including Form 16, are needed as documentation other than numerous more things you should know while applying for a credit card.