In India, filing income tax returns(ITR) is an obligatory duty for all citizens, employees, and corporations. This is essential for maintaining fiscal transparency and developing the country as well as serving as a legal obligation. Still, finishing an ITR can be burdensome and confusing, specifically for individuals who aren’t aware of the documents needed to file ITR.
Recognising the requirements for documentation is essential to assuring a simple and straightforward tax filing procedure, irrespective of the fact that you are a first time taxpayer or a veteran company proprietor.
We’ll look over the necessary paperwork for ITR, which includes the PAN( Permanent Account Number), Aadhaar card, bank statements, Form 16( furnished by the employer), as well as data on investments and expenditures that apply for tax deductions. Workers must also be familiar with records relating to income, similar as Form 26AS and pay bills.
Salaried people contributed remarkably to the economy, and filing their taxes takes careful observation of detail. This blog will describe the exact documentation and statements they must give the tax authorities, as well as offer advice on how to maximise tax deductions and comply with the law.
The tax filing method is more involved for businesses, whether they’re tiny firms or major companies. Businesses need to maintain accurate records for duly submitting their tax returns, which includes business registry documents, financial statements, profit/ loss reports, TDS( Tax Deducted at Source) documents, and audit reports.
Irrespective of whether you are an individual, a salaried person, or a business owner, it’s critical to understand the vital paperwork necessary for tax filing. Let’s explore the documentation needed for various taxpayers.
Documents Needed to File ITR
It is also essential to keep in mind the fact that the ITR you file is an “annexure less” return, which implies that you don’t have to provide any supporting documentation or evidence. For potential future use, it is recommended to preserve the pertinent certificates and receipts. The Income Tax Act permits taxpayers to acquire certificates and proofs before claiming deductions, yet taxpayers have no obligation to provide or submit them while filing returns.
You have to submit the necessary evidence to an assessing officer (AO) when they demand them in an instance that they have questions or need documentation about trades that are included in the returns.
Documents Required for Income Tax Return for Salaried Person
Be certain that you’ve got your PAN card on hand since you will need it for completing your ITR filings.
- The employer provides details about your salary, tax deductions, and TDS (Tax Deducted at Source) on Form-16. Regarding appropriate tax calculations, one must have this record.
- For interest on savings accounts and fixed deposits, obtain the necessary records, which include bank statements or passbooks, when you have received interest income. Accumulate TDS certificates that have been issued by banks along with other financial institutions as well.
- The tax deductions that have been made on behalf of you and the taxes that you paid for are listed on Form 26AS. This offers valuable information for accurate tax filing. To make sure that you possess an in-depth understanding of your tax-related transactions, acquire this form through the Income Tax Department’s official website.
Documents Needed for Capital Gain Income
The following list of documentation is required for capital gain income.
- Purchase and sale contracts or deeds; The price of buying the property, the sale price, the cost of enhancements, transfer costs, etc. are taken into account to determine capital gains.
- For investments in shares, the broker will provide capital gain statements.
- Summary of Capital Gains for Mutual Funds.
Documents Required for Filing ITR for Business
The following are documents necessary to file a business’ income tax return (ITR).
- For the financial year, examine the bank statements.
- The Statements of Income and Expenditure.
- The Auditor report for the financial year.
- A statement from the bank must be submitted if the interest earned exceeds than Rs. 10,000.
Documents Required for Claiming Deductions
Keep the documents readily accessible to claim deductions for particular expenditures, which include
- Record your contributions to the Public Provident Fund (PPF) or Employee Provident Fund (EPF) and maintain the documentation with you.
- Acquire payment confirmations or receipts regarding your kids’ school tuition fees.
- Documents of life insurance premium payments should be kept.
- Keep the relevant documentation on hand when you’ve just bought a property. Documents like receipts for stamp duty and registration payments have been included in this.
- Obtain evidence that your home loan’s principal has been paid off.
- In order to be eligible for deductions, retain a record of the educational loan interest payments.
CONCLUSION
The required documentation must be obtained before filing your income tax return for correct and hassle-free payment of taxes. Getting the appropriate documents needed to file ITR and claiming other permitted deductions is a bit simpler, regardless if you are a salaried individual or a business owner. However, filing an ITR is a lengthy and complex process. For professional assistance, reach out to Taxxinn, and your ITR filing will be completed in no time.
Related Reads:
What Are the Tax Exemptions to Startups by the Indian Government and Eligibility to Claim?
Complete List of Legal Requirements Before Starting Your Company.