August 31st is the last day to submit your income tax return in any financial year. It requires some effort to lodging your Income Tax Return in India. This is why the government provides you with a window period of four months to compile all documents such as salary/income details, bank statements, previous tax statements, etc. The procedure varies depending on the income earned per year and the source of income such as salary, business profit, investment profit, etc. It’s just one part of collecting all your papers prepared.
In this article, we will address the papers required to file Income Tax Return in India in depth so that you can complete the process of professional tax registration.
Get the correct ITR form and fill it to the best of your knowledge and do not try to create any vague figures to save on your tax or it will land you in big trouble.
Form 16 is an employer-issued TDS license that you need to start filling up the income tax declaration form. It offers comprehensive wage break-up and the tax deducted from it. If the company has deducted tax from the wage, Form 16 must be submitted.
The new format 16 is a synchronized tax invoice format with the prescribed ITR-1 and ITR-2 forms for the 2018-19 financial years. Part A and Part B are the two parts of Form 16. Part A contains details such as the employer’s tax deducted from the salary, the employee’s Permanent Account Number (PAN), and the employer’s PAN and TAN. Similarly, Part B comprises of wage break-up data, such as allowances for exemptions and perquisites.
Link your UID card with the PAN card and get all the identifications and verifications cleared in a single click without any hassles. Also, you can get to check the income tax return status quickly with notifications on your registered mobile number once you get your UID card linked to the income tax department.
In ITR 2, the type of wage revenue such as basic income, dearness allowance, home lease compensation, etc. must be specified. Slips of wages are essential for this. As per the income tax dept chapter 139AA, Aadhaar information is required by a person. As of April 1, 2019, when filing ITR, it is compulsory to quote Aadhaar number.
Tax saving income proofs: All tax-saving payments such as 80C, 80D, and 80E produced by the taxpayer during the 2018-19 fiscal year will have to be recorded in the tax returns. Therefore, one has to maintain all the investment proofs useful to guarantee that proper investment claims are made.
For example, if a taxpayer has engaged in alternatives under chapter 80C such as EPF, PPF, tax-saving mutual funds, life insurance, NPS, etc., a taxpayer can receive up to Rs 1.5 lakh in a financial year.
Tax deductions under Section 80D for a total sum of Rs.25000 are also available for health insurance premiums earned for self, wife, and kids.
Home loan statement: Loan statement provides details of the principal and interest reimbursed to the bank by an individual for a home loan — the paper functions as evidence as well as data origin when registering ITR. Under Section 24, the value earned on the house mortgage may decrease the tax liability enabling up to Rs.2 Lakh to request a tax. Details must be submitted in the ITR process on the value earned and the lease earned (if any).
Capital gain statement: ITR must notify the income tax office of capital gains from property sales, mutual funds, and equity shares. To file the income received from the sale of a house, the purchase and sale deed are necessary. One must have the declaration from trust homes and brokers in the event of mutual funds and stocks. For those who register ITR-2, customer information such as title, PAN, and email need to be accessed. If it reaches Rs.1 Lakh for FY 2018-19, capital gains from equity shares and equity-oriented mutual funds will be taxable at 10 percent.
Interest statements from banks and post offices: For taxpayers to collect interest income from savings accounts and fixed deposit accounts, these documents are necessary.
Taxpayers must ensure that the interest income in the ITR is correctly reported. Therefore, to understand the real value gained, it is suitable to acquire interest records from companies or post offices. If you don’t get a certificate of interest, you need to update your passbook so you can get to know the interest credited to your account during the financial year.
Taxpayers must check whether personal and monetary details are adequately recorded from each of the documents collected above, such as taxpayer’s PAN and interest credited. Receiving the above materials and information will facilitate a taxpayer’s tax filing process.
Form 26AS can be considered for a financial year as a combined tax declaration. It includes details of all taxes deposited to your PAN, such as employer tax deducted by banks Tax deducted by other organizations based on payments made to you Advance fees accumulated self-assessment taxes paid The form can be downloaded from the TRACES website.
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Taxpayers can sign in and tap the 26AS type from the e-filing gateway. They should make sure that the revenues deducted in FY 2018-19 reflect against them in Form 26AS. In the event of any inconsistency, they will have to request the deductor to correct the error and then require the TDS for the filing of the return.
In addition to section 80C, taxpayers may claim a deduction under section 80D of the Income Tax Act if they paid a health insurance premium in the financial year 2018-19 for themselves, spouses or children. Similarly, under chapter 80E, the tax charged on an educational loan qualifies for the deduction. Therefore, to request a deduction, you would need to provide bank medical charges and fee charged cards.
Be free to record all the loan records kept by you while registering your transfer. The details include bank name, bank number, account type, and IFSC. Correctly, IFSC software is essential to obtain refunds.