Documents required for finalizing Income Tax Return

What is ITR?

ITR stands for Income Tax Return. It is a form for submitting data on income from multiple sources and paying taxes to the Income Tax Department. It contains the complete details of incomes and tax saving investments made by an individual during a financial year. In this article we will discuss the full list of essential documents required for ITR filing.

Types of ITR forms

There are 7 types of forms initiated by the Tax Department for filing ITR for individuals,organisations,company etc.

• ITR 1
• ITR 2
• ITR 3
• ITR 4
• ITR 5
• ITR 6
• ITR 7

Importance of Income Tax Return Filing

Under the Income Tax Act 1961, certain eligible persons must file their tax return once a year. When you file your tax return, your return and attachments are legal. If you don’t submit it, then you haven’t revealed permitted income. This should be revealed under the law of your black money. If you pay excessive taxes to the government when filing your tax return, you may also be eligible for an income tax refund.Hence, filing a tax return is very important when applying for a loan or credit card.

Essential Documents Required for filing ITR

The various documents required for ITR filing:

1. The appropriate ITR Form

2.  Aadhaar linked with PAN

3. For Salaried Employees:

• PAN
• Form-16 (it is issued by the employer)
• Monthly salary slips.

4. Interest Income related Documents required for ITR filing

• Bank statement/passbook for interest on savings account.
• Interest income statement for fixed deposits.
• Tax Deducted at Source (TDS) Certificate (it is issued by banks).

5. Form 26AS (it is provided by the Income Tax Department)

6. Section 80C Investment Documents

Investment in PPF, NSC, ULIPS, ELSS and LIC comes in deduction under Section 80C. The maximum amount claimed under  section 80C is Rs 1.5 lakhs.

7. Other Expenses Deduction Documents

• Contribution to the Provident Fund.
• Children’s school tuition fees.
• Life/Health Insurance premium pay.
• Stamp-duty and Registration charges.
• Principal repayment on home loan.
• Mutual Funds investment.

8. Other Investment Documents required for ITR filing

• Interest paid on the housing loan.
• Education loan interest payments.
• Stock trading statement.

Hence, the taxpayers have to maintain the record of certificates and receipts of their transactions made in the annual year for the filing of income tax return and need to attach these with it. Also if it has been asked for the clarification of transactions mentioned in the return then the taxpayers has to submit all the proofs to the AO (Assessing Officer).

If you are an NRI here is a read for you: How to file an Income Tax Return for an NRI?