The Income Tax Department is giving the option to file ITR both online as well as offline. However, the process becomes easier if the required documents are collected in advance at the time of ITR filing.
ITR Filing: The Income Tax Department is constantly making efforts to make the process of ITR filing easier. In this sequence, pre-filled ITR forms were introduced. There is an option to file ITR both online as well as offline. However, the process becomes easier if the required documents are collected in advance at the time of ITR filing. Here we are telling about 10 such important documents…
Form-16
Form 16: Form 16A contains information about the tax deducted in addition to salary. The TAN and PAN number of the employer is also given in Form 16. The last date for issuance of Form 16 by the employer is currently June 15.
Form 16 has two parts – Part A and Part B. Both the parts should be downloaded from the TRACES portal of the Income Tax Department. This information is pre-filled in the ITR forms under the head ‘Income from Salary’. Therefore, it should be matched with the information available in Part B of Form 16.
Form 16A and other TDS certificates
Apart from Form 16, the taxpayer should also collect other TDS certificates related to himself. If the interest income on fixed deposits exceeds Rs 40,000/50,000 (Senior Citizens), the bank would have deducted the tax. The bank will have to issue Form 16A for this. Apart from this, mutual funds and companies will have to issue Form 16A for the financial year 2021-22 on dividend income above Rs 5,000.
People taking monthly rent of Rs 50,000 or more should take Form 16C (TDS certificate) from their tenant.
If you have sold your property during the financial year, then Form 16B should be sought from the buyer for tax deducted on the amount. TDS is mandatory for property sold for more than Rs 50 lakh.
Interest income and other interest certificates
If there is an FD in a bank or post office or money has been invested in any interest-bearing scheme, then it is necessary to keep a certificate of interest income or bank statement. Under Section 80TTA of the Income Tax Act, tax exemption can be availed on interest earned up to Rs 10,000. Therefore, interest certificate of the bank and interest certificate of home loan must be kept while filing ITR.
In case interest certificate is not available, you should keep your bank passbook updated. This year, the details of interest income from EPF account will be sought in the ITR forms if the annual contribution is more than Rs 2.5 lakh.
Apart from this, those paying home loan, education loan EMIs during the financial year 2021-22 should obtain a repayment certificate from a bank/financial institution to claim tax exemption.
Annual Information Statement
In November 2021, the Income Tax Department launched the Annual Information Statement (AIS). It contains the details of all the financial transactions done by an individual in the respective financial year.
Hence it is necessary to download AIS for reconciliation of financial transactions.
Form 26AS
Form 26AS: This form is the annual tax credit statement. This is a very important document while filing ITR. You can download this form from the new Income Tax website, TRACES website or from your net banking account.
Tax Saving Investments, Expenditure Proof
To claim exemption while filing ITR, it is necessary to collect proof of all tax saving investments and expenses. If you have followed the old tax regime at the time of ITR filing, then you can claim exemption from them.
Capital gains on sale of property, shares and mutual funds
You need to report capital gains on sale of property, shares and mutual funds at the time of filing ITR. If someone has made capital gains, he/she has to fill ITR-2/ITR-3 form (as applicable).
aadhar number
Aadhaar number: As per section 139AA of the Income Tax Act, 1961, a person has to mention his Aadhaar number while filing ITR.
Investing in Unlisted Shares
If you had holdings in unlisted shares in FY 2021-22, you will have to disclose the same in your ITR. In this case you cannot file tax return using ITR-1, you have to use ITR-2 form.
bank account details
Bank account details: It is necessary to provide details of bank account/accounts during the financial year 2021-22. If you have also closed the account during the financial year, then you will have to give this information.
