Essential Documents Required for Income Tax Return (ITR) Filing in India (FY 2022-23)

Understand the Crucial Documents Required for a Hassle-Free ITR Filing Process

In order to successfully file your Income Tax Returns (ITR) in India, adequate preparation and gathering of essential documents are necessary to ensure a hassle-free process. The Government of India acknowledges the significance of this procedure and allows taxpayers ample time to compile their necessary paperwork, including bank statements, income details, and previous year's tax statements, among others.

Every individual who is liable to file taxes must possess specific documents to facilitate the filing process. The documents required may vary depending on various factors such as income sources, including business profits, investment profits, or salary income.

To simplify the process for you, we have provided a comprehensive checklist of the most important documents required for filing your Income Tax Return (ITR) for the fiscal year 2022-23 (AY 2023-24).

Essential Documents Required for Filing ITR:

1. PAN Card: The PAN card is an essential prerequisite for filing an income tax return as it is not only used for TDS deductions but is also required for the direct crediting of income tax refunds to your bank account. While a PAN card can be located on various documents such as Form 26AS, Form 16, or Form 12BB, the recent government amendment allows taxpayers to file ITR using their Aadhaar number as an alternative.

2. Aadhaar Card: As per Section 139AA of the Income Tax Act, individuals must provide their Aadhaar card details when filing their returns. In case you do not have an Aadhaar card, but have already applied for one, you must provide the enrollment ID in your IT returns. Linking PAN and Aadhaar facilitates online verification of your income tax return via an OTP. You can also download your Aadhaar card online if needed.

3. Form 16: Form 16 incorporates details such as salary information and the amount of TDS deducted by your employer. This form consists of two segments, Part A and Part B. Part-A includes the tax deducted by the employer during the financial year, along with their respective PAN and TAN details. On the other hand, Part B encompasses TDS calculations, including gross salary breakup, exempt allowances, perquisites, and more. Form 16 is a vital document for salaried individuals when filing their ITR.

4. Form-16A/ Form-16B/ Form-16C: Depending on the type of payment, specific forms are issued for TDS deductions. Form-16A applies to TDS deductions on income from sources other than salaries, such as recurring deposits or fixed deposits. Form-16B is issued when a property is sold, providing details of TDS deductions from the payment made to the seller. For individuals or HUFs deducting TDS on rent, Form-16C is required to reflect the TDS deducted at a rate of 5% under section 194IB. These forms are crucial for accurate ITR filing.

5. Bank Account Details: It is obligatory to disclose all active bank accounts in your ITR. You must provide essential bank account details such as bank name, account number, IFSC code, and the total number of accounts held. Additionally, selecting a primary account assists the Income Tax Department in electronically refunding your tax refunds. Bank details are also used for scrutinizing income disclosures and high-volume transactions. This information is easily accessible from bank passbooks, cheque books, statements, and net banking accounts.

6. Bank Statements/Passbooks: Bank statements provide crucial information regarding the interest earned on savings accounts, fixed deposits, and other income during a financial year. These details are vital when filing your ITR to accurately declare your taxable income.

7. Form 26AS and AIS/TIS: Form 26AS is akin to a tax passbook and provides a comprehensive overview of all taxes deposited under your PAN. This includes TDS deducted by banks, employers, and other organizations from payments made by you. It is crucial to ensure that all taxes deducted are reflected against your PAN, as any mismatch may affect your ability to claim tax credits. You can access Form 26AS on the Income Tax India e-filing website. Additionally, the new Annual Information Statement (AIS) app provides convenient access to TDS, TCS, and interest-related information in one place.

8. Home Loan Statement: If you have taken a home loan from a financial institution, it is essential to gather details of principal and interest payments made during the financial year. This documentation serves as proof and enables accurate reporting during ITR filing.

9. Tax-Saving Instruments: If you have invested in tax-saving schemes such as tax-saving fixed deposits, ELSS, or other eligible investment receipts, make sure to have the relevant documents ready when filing your taxes.

10. Capital Gains Details: If you have sold shares, securities, or property during the fiscal year, it is crucial to possess documents such as broker statements or property sale deeds to accurately report capital gains or losses.

11. Rental Income: If you earn rental income from properties, ensure its inclusion while filing ITR. It is advisable to collect rent receipts from your landlord to support your financial declarations. Although these documents are not required for ITR submission, keeping them safely stored is important for future reference if requested by your employer or the Income Tax Department.

12. Foreign Income: If you have earned any income in or from a foreign country, such as during a job deployment, it is essential to furnish the required documents to your tax consultant. These documents will aid in claiming tax credits and benefits under Double Taxation Avoidance Agreements.

13. Dividend Income: If you have invested in shares or mutual funds and received dividend income, it must be reported in your income tax return. Information regarding dividends earned can be sourced from broker statements or Demat account summaries.

By collating these essential documents, you can ensure a smooth and error-free income tax return filing process. Remember to review and cross-check the accuracy of all the details provided before submitting your ITR.

What documents are required to claim tax deductions under sections 80C to 80U?

Here are the important documents you need to claim tax deductions under sections 80C to 80U of the Income Tax Act while filing your ITR:

• Home loan statement

  • This is important to claim a deduction for the principal amount repaid during the year under section 80C, up to a maximum of ₹1.5 lakh.
  • You can also claim a deduction for the interest paid on your home loan, up to a maximum of ₹2 lakh, if your house property is self-occupied.

• School fee receipt for tuition fees

  • The tuition fee component is allowed as a deduction under section 80C of the Income Tax Act for a maximum of two children.

• Contribution to PPF, Life Insurance Premium Receipts

  • Amount invested in all such tax-saving funds is eligible for deduction under section 80C, aggregating to a maximum deduction of ₹1.5 lakh.

• Investment in NPS

  • Amount invested in NPS is eligible for deduction under section 80CCD and 80CCD (1B), respectively.

• Donation Receipts

  • Donations made to the institutions that qualify for deduction under section 80G will be required.

• Details of Medical Insurance

  • The amount paid as medical policy premiums is eligible for deduction under section 80D.
  • The deduction is restricted to ₹25,000 per year for self, spouse, and dependent children.
  • For senior citizens parents, the deduction is also available for medical expenditures up to ₹50,000 if your parents are not health insured.

• Education loan

  • If you are paying interest for an education loan taken for higher studies of yourself, spouse, or children, you can claim a deduction under section 80E.
  • The deduction is available without any limit subject to the actual interest paid from the first year scheduled for repayment to a total of 8 years.

• Receipts of any other investments

  • You need to collect the receipts of any other investments you have made, if any.

What documents are required for capital gain income?

Capital gain is the profit you make when you sell an asset for more than you paid for it. In India, capital gains are taxed differently depending on the type of asset you sell and how long you held it.

Here are the documents you need to keep track of to calculate your capital gains and file your taxes correctly:

• Property/Gold/Silver sold:

  • Sale and purchase agreements/deeds
  • Calculation of capital gain is done based on the purchase price, sale price, cost of improvement and transfer expenses, etc.
  • Registration details

• Equity shares sold:

  • Capital gain statements from the broker

• Mutual Funds sold:

  • Capital Gain Statement of Mutual Fund

In addition to these documents, you may also need to keep track of any other expenses related to the sale of the asset, such as legal fees, brokerage fees, or stamp duty.

Keeping track of these documents can be a hassle, but it's important to do so in order to file your taxes correctly and avoid any penalties.

What documents are required for income from house property?

Income from house property is a taxable income in India. The amount of tax you pay depends on the annual rental income you receive from the property, the municipal taxes you pay, and the interest you pay on any home loan you have taken.

To calculate your income from house property, you need to keep track of the following documents:

• Address of the property: This is the address of the property that you are renting out or letting out.
• Co-owner details: If you own the property with other people, you need to provide their details as well.
• Rent agreement, if any: If you have a rent agreement with your tenant, you need to provide a copy of the agreement.
• Ownership details: You need to provide proof of ownership of the property, such as a sale deed or a property tax receipt.
• Interest certificate for loan: If you have taken a home loan to purchase the property, you need to provide a copy of the interest certificate from the lender.
• Pre-construction interest details: If you have paid interest on the construction of the property, you need to provide details of the interest paid.
• Municipal tax receipts: You need to provide copies of the municipal tax receipts for the property.
• Rental income details: You need to provide details of the rental income you receive from the property, including the dates of payment, the amount of rent paid, and the name of the tenant.

By keeping track of these documents, you can ensure that you calculate your income from house property correctly and file your taxes accurately.

What are the documents needed by a businessman or professional while filing ITR?

Businessmen and professionals need to keep track of certain documents to file their income tax returns (ITR) correctly. The documents required depend on whether you are opting for presumptive taxation or not.

Presumptive Taxation

If you are opting for presumptive taxation, you only need to keep track of the following documents:

• Gross turnover or receipts
• Gross profit
• Sundry debtors, creditors, stock in trade, and cash balance at the end of the year
• 26AS statement to reconcile TDS deducted in your business name

Audited Returns

If you are not opting for presumptive taxation and your turnover or sales exceed Rs. 1 crore, you need to get your accounts audited under section 44AB. This limit is Rs. 10 crore applicable from the F.Y. 2021-22. Additionally, a professional like Chartered accountants, Doctors, Lawyers, etc., with a total receipt exceeding Rs 50 lakhs are required to get accounts audited. In case of audit requirement, all the books of accounts need to be maintained properly.

Tax Filing Tips

Filing ITR can be challenging and time-consuming if you have income from multiple sources. You might also miss out on some deductions and benefits that can increase your refund from the Income Tax Department. To avoid this, you can consult with tax professionals.

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Do you need to attach documents with your income tax return?

No, you do not need to attach documents with your income tax return (ITR). ITRs are now paperless, so you can file them online without having to send any physical documents. However, it is still advisable to keep your income and tax-deductible documents safe for 7 years. This is because the Income Tax Department (ITD) may ask you to provide these documents if they conduct an audit of your return.

Here are some of the documents you should keep safe:

• Proof of income: This includes your salary slips, business receipts, and other documents that show how much money you earned during the year.
• Proof of deductions: This includes your medical bills, donation receipts, and other documents that show how much money you spent on eligible deductions.
• Bank statements: These documents can help you track your income and expenses, and they can also be used to verify your identity and address.
• Property documents: If you own any property, you should keep the title deed, property tax receipts, and other documents related to the property.

It is important to keep these documents safe in a secure location. You should also make sure that the documents are organized and easy to find. This will make it easier for you to provide them to the ITD if they are ever requested.

Here are some tips for keeping your tax documents safe:

• Scan the documents and store them in the cloud. This will make them accessible from anywhere.
• Keep the original documents in a safe place at home.
• Label the documents clearly and date them.
• Update the documents as needed.

By following these tips, you can help ensure that your tax documents are safe and secure.