12 documents you need to file your income tax return this year

From Form 16 to tax saving investment proofs, a list of documents you need to have by your side while filing ITR

Income tax return (ITR) filing season has begun for FY 2018-19. Don’t wait for the last date to file your ITR i.e 31 July 2019, it is better to keep all the required documents up-to-date and handy. This will ensure a smooth sail when you file your returns.

Documents’ Checklist for ITR filing

Given below is a list of all the documents that may be required while filing ITR for the financial year (FY) 2018-19. Taxpayers can take a look at each of these pointers and keep them ready if they are applicable.

• Form 16

Form 16 is a TDS certificate given by an employer. It provides the detailed break-up of the salary and the tax deducted on it. If the employer has deducted tax from the salary, it is mandatory to provide Form 16. 

The new format of form 16 is in sync with the ITR-1 and ITR-2 forms prescribed for the financial year 2018-19. Form 16 includes 2 parts—Part A and Part B. Part A has the details, such as the tax deducted from the salary by the employer, Permanent Account Number (PAN) of the employee, and PAN and TAN of the employer. Similarly, Part B consists of the information regarding salary break-up, such as exemption allowances and perquisites. 

The taxpayers can use the details from the Form 16 while filing their returns manually. Or else, they can just upload Form 16 on an online platform and do away the filing right away.
 

• Form 16A/Form 16B/Form 16C

Your bank will issue Form 16A for tax deducted from income sources such as fixed deposits. Upon selling a property, the buyer will issue Form 16B that states the tax deducted on the paid amount. In another case, landlords get Form 16C from their tenants stating the tax deducted on the rent received. Form 16C is mandatory for monthly rents above Rs.50,000.
 

            The taxpayer can check the income received from various payees and tax deducted thereon, while filing their income tax returns, from the forms mentioned above.

• Form 26AS

Form 26AS can be thought of as a consolidated tax statement for a financial year. It includes details on all the taxes that has been deposited to your PAN, such as:
 

• Tax deducted by the employer
• Tax deducted by banks
• Tax deducted by other organisations based on the payments made to you
• Advance taxes deposited
• Self-assessment taxes paid

The form is available for download from the TRACES website. Taxpayers can log into the e-filing portal and download the form 26AS. They should ensure that the taxes deducted in FY 2018-19 are reflecting against their in Form 26AS. In case of any mismatch, they will have to ask the deductor to rectify the mistake, and then claim the TDS while filing returns.

• Tax saving investment proofs

All the tax-saving investments like 80C, 80D and 80E made by the taxpayer during the FY 2018-19 will have to be reported in the income tax returns. So, one has to keep all the investments proofs handy to ensure correct claim of investments is done.
 

For instance, a taxpayer can claim up to Rs 1.5 lakh in a financial year if he has invested in options under section 80C like EPF, PPF, tax-saving mutual funds, life insurance, NPS and so on.

 

Also, health insurance premiums paid for self, spouse, and/or children are eligible for tax deductions under Section 80D for a maximum amount of Rs.25,000. Insurance premiums paid for parents can bring in an additional deduction of up to Rs.50,000 under section 80D. 
 

•  Home loan statement

 Loan statement provides break-up details of the principal and interest an individual has repaid to the bank towards a home loan. The document acts as a proof as well as source of information while filing ITR.  Under Section 24, the interest paid to the home loan can reduce the tax liability allowing a tax claim of up to Rs.2 Lakh. Details on the interest paid and the rent received (if any) must be entered in the ITR form. 

• Capital gains statement

Capital gains from property sale, mutual funds, and equity shares have to be notified to the income tax department through ITR. Purchase deed and sale deed are necessary to file the income received from selling a house. In the case of mutual funds and shares, one must have the statement from fund houses and/or brokers. For those who file ITR-2, the details of the buyer must be entered, such as name, PAN, and address. Capital gains from equity shares and equity-oriented mutual funds are taxable at 10% if it exceeds Rs.1 Lakh for FY 2018-19.
 

• Details of unlisted shares

Even if the source of income for a taxpayer is salary, he may hold shares of an unlisted company. In this case, it is mandatory to file ITR-2. The details of the investment along with the PAN of the company have to be submitted, such as:

• Opening balance
• Shares acquired during the year
• Shares transferred during the year
• Closing balance

• Aadhaar card

Quoting your Aadhaar card number while filing ITR has been made mandatory, if an individual has applied for it, the enrolment number may be entered.
 

• Pre-validation of bank account for ECS refund

From March 1, 2019, the income tax department will issue only e-refunds. Such refunds will be remitted to the bank accounts that are linked to PAN. It is necessary to pre-validate a bank account with PAN before filing your ITR.
 

• Bank account details

An individual must provide the details of all the bank accounts held while filing ITR. The following details have to be entered:

• Bank name
• Account number
• Account type
• IFSC code

Make sure to provide correct details so that the refund, if any is easily processed.
 

• Updated bank, post office, and PPF passbook

It is recommended to keep the passbooks of bank, post office, and/or PPF up-to-date before filing ITR. It becomes easier to report the details of income, such as dividend and interest with the updated passbooks.
 

• Interest certificates from banks and post office

These documents are necessary for taxpayers to collate the interest income earned from savings accounts and/or fixed deposit accounts. 
 

Taxpayers must ensure correct reporting of the interest income in the ITR. Hence, it is appropriate to obtain interest certificates from banks or post office to know the actual interest earned. 
 

If you fail to get the interest certificate, you have to get your passbook updated so that you can get to know the interest credited to your account during the financial year.

From each of the above documents gathered, taxpayers must check if personal and monetary details are appropriately recorded such as taxpayer’s PAN and interest credited. The collation of the above documents and information will ease the tax filing process for a taxpayer.

The author is ClearTax CEO. Views expressed are his own