Essential documents for filing income tax returns

documents for filing income tax returns

It’s the tax season and everyone is busy filing their taxes. Things have become a lot easy with the introduction of e-filing.  Now you can file taxes from the comforts of your home. Despite the advent of technology we see a large number of income tax rejections. Wrong selection of forms and insufficient document are some of the major reasons.  As forms have also changed and it is quite important to adapt to the new format.  Here we give a lowdown on essential documents required to make e-filing a breeze.

Which form to choose?

You are required to choose from different forms based on your e-filing needs. Here is a list of the forms, their details and whom they are best suited for.

1)  ITR-1 (Sahaj): This is a simplified, 1 page form for individuals earning a salary/pension, having income from one house and interest with income not exceeding 50 lakhs. This rationalised ITR Form aims to decrease the compliance burden on the taxpayer and is slated to benefit more than two crore tax-payers who will be eligible to file their return of income in this simplified form. From the assessment year 2017-18, the following category of taxpayers are not eligible to use the ITR-Sahaj form:

  • Those whose total income exceeds Rs.50 lakhs,
  • Those whose dividend income exceeds Rs.10 lakhs
  • Those whose total income includes, unexplained investments, cash credits, unexplained money etc.

2) ITR-2: First of all, it must be noted that ITR forms ITR-2, ITR-2A (previously for individuals & HUFs without income from capital gains and for those not holding foreign assets) and ITR-3 have been rationalized and replaced by a single ITR-2 form. This form is appropriate for

  • Individuals and Hindu undivided families (HUFs) whose income does not include income from business.
  • Taxpayers having no business/profession income but having income from property or capital gains

3) ITR 4S (SUGAM): This is a substitute for ITR-4S and can be used by a HUF or an individual whose income includes business income from a proprietary business or profession (which is assessable on a presumptive basis). However, ITR 4 is not applicable to taxpayers earning dividend income more than Rs.10 lakhs and those whose total income includes, unexplained investments, cash credits, unexplained money etc.

4) ITR-5: This is the form for Firm or Limited Liability Partnerships

5) ITR-7: This is the form that is required to be filled by a political party.

Once you have selected the right form it is essential to have all the requisite document so that you can file ITRwithout any difficulty.  Here we give a list of all the essential documents.

1) PAN (Permanent Account Number): This is required because you are identified by your PAN number on your ITR form.

2) Form 16: It is the annual salary document given to you by your employer and contains details regarding your income and the TDS charged by your employer on your behalf.

3) Form 16A:  This is to be collected from all parties who have made payments to you and have deducted tax for the same. This also includes financial institutions, banks and companies with whom your fixed deposits are kept or to whom you have rendered a service.

4) Summary of bank accounts from the previous fiscal year: This acts as a trail of all transactions carried out by you in the preceding year.

5) Investment documents: These are required to avail the concerned deductions.

6) Documents regarding property owned: For new or existing property owned, all the relevant receipts should be arranged for in advance such as property tax, rent received during the year, the loan details if the property has been bought using a loan and a copy of certificate of interest paid for the same.

7) Documents regarding sale/purchase of investments: Documents regarding the purchases and corresponding sales over the year should be arranged for.  In the event of a large number of transactions, a statement of sales and purchases should be created to arrive at a profit/loss figure.

8) Documents regarding donations:  If you have made returns to multiple charities, only the receipts of total donations are required for the tax return.


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