Here is a quick list of documents needed for tax filing, which should be handy, particularly while filing your return online. However, it varies from individual to individual depending on their income and their tax slabs.
General Documents Required for Tax Filing:
1. PAN Card Details:
PAN Card is the first document that you need for filing your IT Return. You need the PAN number to communicate with the IT department as it recognises a taxpayer through his PAN number. You are required to use the PAN number while logging in an income tax e-filing portal.
2. Aadhaar Card Details:
Aadhaar card has been made mandatory by the government for filing tax returns starting 1st July 2017. It is important for tax filers apply for Aadhaar Card if not already made and link it with PAN Card for filing their tax returns.
3. Details of cash deposited during demonetisation:
If a person’s aggregate cash deposits are more than Rs. 2 lakh from 9th November 2016 to 30th December 2016, he needs to mention it in his income tax returns.
4. Bank account information:
An assessee is required to provide bank account details to the IT department while filing the return. The taxpayer is required to provide the details of the bank in which he wants to receive refunds, even if he does not qualify for a refund.
5. TDS certificates (if applicable):
Every person deducting TDS shall give TDS Certificate with all the details, as per section 203 of Income Tax Act.
6. Tax payment challans (Self-Assessment Tax, Advance Tax) where applicable:
You need to keep your self-assessment/ advance tax challans, if any, handy to fill in the details in your ITR form.
7. In case of revised return/ return in response to a notice received from Income Tax Department:
You need the details of original return/ details of notice
Documents Needed to File Taxes after Buying a House:
1. Address of Property:
Details of the address of property need to be maintained by you to claim deductions while filing income tax returns.
2. Co-owner Details (if the property is co-owned):
If the property is co-owned, their respective shares in the income of property will be included in their income.
3. Rent Agreement:
If you earn rent on your house property, you need to show it to the IT department while filing the IT returns.
4. Interest certificate issued by a bank for housing loan:
A certificate from the bank that has your principal and interest details, will be required to claim deductions in case of home loans.
Documents Required to file taxes in case of House Property:
1. Rent Agreement:
If an individual has declared house property to his employer, it will be shown in Form 16, but he still needs to show it in the ITR. Therefore, having the rental agreement is a good thing to show if he is under scrutiny.
2. Possession Letter:
In case an individual’s has purchased an under construction house property then the interest paid on related housing loan will be accumulated till he gets possession. This accumulated interest can be claimed as a deduction in five equal instalments. It is thus advisable to keep the possession letter handy in case it is required for future reference.
3. Municipal Taxes Receipt:
An individual needs to retain municipal tax receipts to produce it if his case comes up for scrutiny.
4. Housing Loan Interest Certificates:
An individual needs to submit his house loan certificates to the employer so that it is successfully adjusted in his TDS deductions.
5. Details of Tax Deduction/Form 16A on rent:
Form 16A is a certificate that shows tax deduction at source for income from other sources. It is recommended that an individual keep this certificate handy for future reference.
6. Details of pre-construction interest paid:
Pre-construction interest paid or payable should be kept handy while filing ITR to determine the tax liabilities and check if the correct tax has been deducted.
7. Ownership Details:
Whether an individual is an owner or a co-owner in a house property, he can claim deductions only when he has all the ownership details along with knowing about his share in the property, in case of co-ownership.
Forms Needed to File Taxes in case of salary income:
1. Form 16 or Salary certificate received from the employer:
A salaried person, whose TDS has been deducted from his salary by the employer, shall receive Form 16 from his employer. Form 16 shows the salary earned during a financial year along with deductions, exemptions and tax deducted on the salary in that year. If no tax is deducted then still the employee can ask for the issue of salary certificate.
2. Pension Certificate:
Pension income is treated as salary and therefore becomes taxable. It is wise to collect the Pension certificate from the bank and keep it handy as and when needed.
3. Details of salary arrears (if applicable):
If an individual receives arrears of pay in a particular year, his tax liabilities is raised artificially in that year. Keep the details of these salary arrears handy to avail deductions.
4. Full and Final settlement statement (in case of a job change):
Full and final settlement statement is required in case an individual has changed his job. It is needed to calculate the TDS and determine the exact tax liabilities for that year.
5. Foreign Salary Slips:
It is required to determine your foreign income (if applicable) and taxes deducted on the same.
6. Foreign tax returns filed:
An individual should keep his income proofs and tax returns filed in foreign countries handy so that it is easier to submit if his tax returns come under scrutiny.
7. Rent agreement and Rent Receipts (if not considered by the employer):
It is important to keep these documents handy for when the tax department requires proof especially in case when an individual’s employer has not considered his rent agreements, but he still claims an HRA exemption.
8. Travel Bills:
In case a person’s employer does not consider his travel bills, he can still file an IT return, claim the exemption and get a refund. For this, he needs to maintain all the valid travel bills that fulfil the conditions.
9. Details of PF Withdrawn:
An individual’s PF can either be taxable or exempt from tax due to which he should keep the details of the withdrawn PF (PF Passbook) handy for future reference.
10. Details of Gratuity or Leave encashment received or receivable:
It is always wise to keep the details of gratuity or leave encashment that an individual has received or is eligible to receive whether it is taxable or not.
11. Details of Notice Pay, Joining Bonus:
Notice pay and joining bonus are both paid by the employer on certain conditions, and hence it is important to keep the details handy as it may be taxable and will be easy to determine the person’s tax liability.
Tax Documents In case of capital gains:
You are required to mention the details of long term or short term capital gain, whichever applicable while filing your ITR. It is important to mention the long-term capital gains even if it is not taxable for equity mutual funds and shares.
1. Sale and purchase deed of the property including stamp valuation of the property (for land/building):
To provide details of the cost of acquisition and the documents in case of construction cost incurred.
2. Documents for the cost of an improvement on the property (if improvement is made):
Supporting documents to be produced in case of the cost incurred on the improvement of property.
3. The stock statement in the case of trading in shares etc. (specifying sale and purchase value of shares):
To show gains and losses and in case of the latter, these losses can be carried forward to next eight years and set it off in future capital gains.
4. In case of another capital asset, the cost of purchase, sale value and cost of improvement if any:
Retain documents of these instruments to claim deductions or calculating the tight amount of tax.
5. Details of expense incurred on transfer:
The expenses incurred on the transfer of any capital asset are tax deductible, and hence the records should be maintained as proof of expenses.
6. Re-investment purchase deed for claiming exemption from Capital Gains:
You can claim exemptions on capital gains on re-investing the amount in certain specified assets like house, bonds, etc. You need to maintain the record to claim exemptions in this case.
7. Details of investment in Capital Gains Accounts Scheme (if applicable):
The capital gains earned should either be invested or deposited in the capital gain account scheme if you are going to claim them as exemptions. The details of the same should be produced while e-filing the tax return.
Documents in case of other sources of income:
1. Bank passbook/ statement or interest income certificate:
Bank details also required to check your Savings account interest as well as your FD interest. For this, you are required to disclose all your active bank account number, IFSC code, the name of the bank, etc. in your ITR.
2. PPF passbook for interest:
If you have maintained your PPF account you need to submit the details of the transactions to show the amount of interest that you have earned in a year.
3. Dividend warrants/ amount:
Though income from dividends is tax-free in the hands of the investor it is recommended that you keep the dividend warrants with you. If your dividend from Indian company exceeds Rs. 10 lakh for the year then you need to pay the tax @ 10% on such dividend more than Rs. 10 lakh.
4. Interest certificates on bonds:
The income earned as interest on bonds are required to be disclosed while e-filing Income Tax Return.
5. Details of accrued interest on NSC during the year:
Interest earned by investing in NSC is taxable which is why you need to keep the details of the same while e-filing your tax returns.
6. Rent agreement for plant & machinery, building, etc., given on rent (if any):
This is included in the employer’s employee welfare fund and is taxable as they cannot be included under the head ‘Profits and Gains of Business or Profession’.
7. Receipts of any income from winning the lottery, horse races, etc.:
These incomes are taxable, and their receipts should be kept handy.
8. 26AS statement:
It is a form which depicts that the tax that has been deducted from your various sources of income and has also been deposited to the Government account. Download it and keep it with you as a statement proof.
Tax saving investments:
1. Life and medical insurance payment receipts:
Keep them handy as proofs for claiming tax deductions or exemptions.
2. PPF passbook:
If you have maintained your PPF account with a bank or a post office you will be required to reflect the details of investment in the tax form.
3. Tax Saving Fixed Deposit receipts:
If you have invested in Fixed Deposits, you can claim up to 1.5 Lakh as a deduction from your income. To claim these deductions, you need to keep the receipts with you.
4. Repayment certificate for a housing loan, education loan (where applicable):
Another proof to claim deductions on income. Maintain the certificates for when the need arises as you will be required to produce it while claiming the deduction.
5. Deposit receipts for Senior Citizen Saving Scheme:
This too needs to be shown on the income tax return, and hence the receipts are required.
6. Children tuition fees receipts:
It is required to claim tuition fees as deductions of up to 1.5 Lakh on your income. It can be considered as a tax saving investment instrument under section 80C.
7. Donation receipts (along with PAN, name and address of the donor):
To claim deductions on charitable contributions you need to maintain donation receipts after making actual donations.
8. Any other tax saving investment receipts/ proofs:
Retain all the other investment proofs under section 80C for personal income tax assessment
as a precaution and to avoid paying excess TDS.
This is an exhaustive list of documents and the actual number of documents required for filing return varies
from case to case depending upon the tax situation of the individual.
Also, most of the documents in this list are submitted to the employer by the employee and
such information is reflected in his Form 16. Therefore, at the time of filing return, some
basic documents and Form 16 are only required for most of the salaried individuals.