While you are filing ITR (Income Tax return) and have all your documents with you then it will make the process easier. Following are the important documents you need to keep with you while filing ITR for FY 20-21:
If an employer deducts tax from an employee’s salary, form 16 is given. In layman’s terms, it’s an acknowledgement that the tax deducted has been deposited with the appropriate taxing authority.
Form 16A: The certificate of deduction of tax at source, form 16/ 16A, is given when the employer deducts tax on behalf of the workers.
Form 16B: A purchaser, i.e., a deductor, issues Form 16B to a seller as a TDS certificate. It enables taxpayers in calculating the full amount of tax deducted at the source when buying a property.
Form 16C: The Indian government has launched Type 16C, a new TDS permit. It represents the amount of TDS deducted by the individual/HUF on rent at 5% (u/s 194IB). It’s the same as Form 16 or Form 16A, which are used for salaries and other fees, respectively.
Form 16D: A TDS Certificate issued by a Payer for the payment of a commission, brokerage, contractual charge, or professional fee under section 194M is known as Form 16D. It provides information about the type of payment and the number of TDS that was deducted
Interest certificate from bank and post office
Taxpayers must also specify the basis of their interest payments, such as a pension account, a guaranteed fund, or another source, on the ITR form. Interest revenue through savings deposits, fixed investments, and other sources is normally payable in the hands of an individual. Individuals, on the other hand, may claim up to Rs 10,000 on interest from savings accounts under section 80TTA. Senior citizens may also assert a Rs 50,000 interest income tax deduction on bank and post office deposits.
Form 26AS is a document that shows the amount of TDS or TCS deducted from a taxpayer’s different sources of revenue. The deductor then deposits the tax withheld with the state. It also provides reports on the taxpayer’s advance tax/self-assessment tax and high-value transactions.
Tax saving investment proofs
During FY20-21, all the tax-saving contributions you are making and expenses you incur that are liable for deduction under sections 80C, 80CC, and 80CCD (1) will help you reduce your tax liability. The total amount of tax relief you are eligible under these three parts in a financial year cannot exceed Rs 1.5 lakh. Aside from investments, there are certain expenses that are tax-deductible under section 80C.
Documentary proofs to claim deductions u/s 80D to 80U
Aside from tax-savings and spending’s under section 80C, there are certain charges on which you can claim a deduction under various income-tax sections. For example, health insurance premiums charged for self, partner, and children in FY 20-21 are liable for a deduction of up to Rs 25,000 under section 80D of the act.
Similarly, you can seek a deduction under section 80E if you have paid interest on an education loan. The amount of interest charged on a college loan has no upper limit. You’ll need an interest charged certificate from the bank where you took the loan to claim this deduction.
Interest certificate (home loan) from bank/NBFC
When you take a home loan from a bank or any other financial institution, make sure you have a copy of your loan statement for the previous fiscal year. It will help you with the breakdown of how much principal and interest you have paid out. This assertion is required as evidence as well as a source of knowledge when filing the tax return.
You must receive a capital benefit statement whether you have made transactions in bonds, mutual shares, or other assets. Your brokerage house will give you this statement and it lists all of the capital gains.
Pre validation of bank account for ECS refund
To claim an income tax refund, you must pre-validate your bank account and complete your KYC with your PAN and Aadhar number.
To file your ITR successfully, you must have Aadhaar information. Individuals are expected to include their Aadhaar information when filing their income tax returns, according to section 139AA of the Income Tax Act.
Collect details of investments in unlisted shares
If you have invested in shares in an unlisted firm, you must provide all of the relevant information on your ITR-2. You must have full investment information, as well as the company’s name and PAN.
Correct bank account details
While filing your income tax return it is advisable to share your correct bank account details reason being if there’s any refund then that would be credited in the shared bank account by the income tax department.
Updated bank and post office savings account passbook, PPF account passbook
When filing your ITR, make sure to amend and review your bank account for the FY20-21 to record all other revenue, such as dividends.
It is important for salaried taxpayers to keep track of their pay. The salary slip provides all of an individual’s salary facts, such as the basic salary, Dearness Allowance (DA), TDS number, House Rent Allowances (HRA), Transportation Allowances (TA), regular deductions, and so on. These particulars are provided in order to file income tax return.
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