Documents required to file Income tax Return
1. Form 16:
Form 16 is delivered by the boss to their employee. Form 16 is considered to be the most imperative because it provides the affirmation that TDS has been withheld and deposited in the government office in the name of an employee. It gives a thorough breakdown of the employee's salary and the TDS amount that was withheld from it. Form 16 provides all the vital information to file Income tax return.
It is every employer's duty to issue form 16 before 15th June of the following year. An employer can ask for a replacement Form 16 if you misplace it.
2. Form 16A, as well as additional TDS certificates
Individuals are needed to gather any additional TDS certificates that apply to them in addition to Form 16. The bank would withhold taxpayers from income tax filing online generated on fixed deposits in FY 2021–2022 if it exceeds Rs 40,000/Rs 50,000 (for senior citizens). Additionally, the bank must send the person Form 16A for the tax deducted. You will get Form 16A from mutual funds and businesses for the taxpayer withheld from dividends received during FY 2021-.
The same goes for individuals who pay a monthly rent of Rs. 50,000 or more; they must obtain Form 16C (a TDS certificate) from their tenant. According to current income tax return regulations, tenants who pay a monthly rent of Rs. 50,000 or more must deduct tax from the total amount of rent they pay annually.
Those who sold real estate during FY 2021–22 should request Form 16B from the purchaser to show the amount of tax deducted. If the property is sold for an amount exceeding Rs. 50 lakh, TDS is required.
3. Interest-bearing Certificates of Income and Other Interest
Individuals are required to break out the interest income tax filing online they earned from various sources, such as savings accounts, fixed deposits, etc., in ITR forms.
It's critical to obtain interest certificates from banks, the post office, and other financial organisations, to accurately record one's income tax filing online on tax forms and to take advantage of taxpayer breaks and exemptions. If there is no interest certificate, one must make sure to up.
Section 80TTA allows individuals to deduct Rs 10,000 for interest on savings accounts. In the hands of an individual, interest from fixed deposits, recurring deposits, RBI taxable bonds, etc., is completely taxable. As a result, one must file income tax return correctly and pay taxes properly. Despite the fact that PPF interest is tax-exempt, you still need to disclose it. In this year's ITR forms, if annual contributions are exempt, people are asked to include information about interest received from EPF accounts.
For taxpayer exemption and deduction purposes, anyone who made house loan or student loan payments during FY 2021–22 should get a repayment certificate from their bank or financial institution. The maximum deduction that an individual may make under Section 24 for interest paid on EMIs for a home loan is Rs 2 lakh. The principal of a house loan repaid throughout the fiscal year is likewise subject to Section 80C.
The interest paid on the student loan for FY 2021–2022 is deductible under section 80E.
4. Annual Report of Information
The Income Tax Return Department introduced the Annual Information Statement in November 2021. (AIS). This statement includes information on each financial transaction that a person made within a specific fiscal year.
The new AIS "includes extra information relating to interest, dividend, securities transactions, mutual fund transactions, international remittance information, etc.," according to a press statement from the department in November 2021. The documents for income tax also include information about the taxes that were deposited with the government using your PAN.
To make sure that all of the incomes specified in the statement are reported in the ITR form as applicable to you, individuals must download and cross-check the financial transactions from AIS.
5. Form 26AS
Downloading Form 26AS is required for individuals from the new income tax filing online taxpayer portal. The information on the taxes deducted and submitted against your PAN with the government is listed on Form 26AS, which is similar to a tax passbook.
Cross-referencing the data in TDS certificates and interest certificates with the data in Form 26AS is required. This is owing to the possibility that TDS deducted may not be reflected on your Form 26AS due to an incorrect PAN or incorrect assessment year.
6. Tax-saving investments and expense documents for income tax
It is crucial to gather evidence of tax savings investments and expenditures before claiming a deduction on your ITR. Please be aware that if you use the previous tax system at the time when you file income tax return, you may be able to deduct investments and expenses that saved you money on taxes. In order to avoid greater TDS on their wage, employees typically declare and submit all tax-saving documents for income tax to their employers (if they choose the previous income tax return scheme).
Part B of Form 16 lists the proofs that were filed. The ITR form is pre-filled by the tax department with data from part B of Form 16.
However, if you forgot to declare any tax-saving evidence, you can still claim it when you file Income tax return. Contact lawgical india if you’re new to filing income tax.
