Forbes India 15th Anniversary Special

ITR filing: Here are the documents required for income tax return filing

Don't get caught off guard by the taxman. Stay ahead by knowing about the documents required to file your ITR

Published: Jul 1, 2024 06:03:28 PM IST
Updated: Jul 19, 2024 06:35:03 PM IST

Income tax return filing in India is the process of submitting a tax return to the tax authority detailing income, deductions, and credits. It is a staple for everyone, including businesses and individuals with reportable income.

This transparency helps you keep track of your financials and shows lenders and government agencies that you're responsible for your finances. And, of course, you could face serious legal issues and penalties if you do not file your income tax returns. Therefore, it's crucial to stay on top of your tax obligations.

Also Read: ITR filing last date for AY 2024-25 (FY 2023-24): Due dates for filing income tax returns, TDS, advance tax payments

General Documents Required To File Income Tax Returns

Before we take you through India's e-filing income tax return process, let's cover the essential documents you'll need to get started. These include:

  • PAN Card
  • Aadhaar Card
  • Bank account details for the taxpayer
  • TDS certificates (Forms 16, 16A, 26AS, etc.)
  • Tax payment challans
  • Investment proofs (for deductions under sections 80C, 80D, 80E, 80TTA, etc.)

For Salaried Employees

If you're a salaried employee, it's time to organise your tax documents before you begin e-file ITR in India, such as:

  • PAN
  • Form 16 from your employer
  • Month-by-month salary slips
Make sure to collect all the details about taxable allowances you received and any exemptions you claimed, such as house rent and leave travel allowance.

Also Read: Income tax slabs in India 2024-25: Old vs new tax regime, deductions and more

Documents Required To File Income Tax Returns In Case You Have Income From Other Sources

  • Bank Statements and Interest Certificates: Record the interest earned on savings accounts, fixed deposits, and other bank accounts. Note the account numbers, IFSC codes, and bank names.
  • Dividend Warrants: Keep track of any dividends you have received, as they are tax-free up to ₹10 lakhs. If the dividends exceed ₹10 lakhs, you'll need to pay 10% tax on the excess.
  • Form 26AS: This document includes the tax deducted at source from various income sources.
  • Accrued Interest: Interest earned from National Savings Certificates and similar schemes should be accounted for.
  • Lottery Income: If you win a lottery, your winnings are taxed at a flat rate of 30% and must be reported.
  • Agricultural Income: Keep the relevant bank statements and receipts if you have any income from agricultural sources.
  • Clubbed Income: Don't forget to include any income of your dependents that you are required to report.

Also Read: Income tax slabs for senior and super senior citizens (new and old tax regimes) for AY 2024-25

Documents Required To File Income Tax Returns In Case Of Income From House Property

When filing an ITR, having the right documents for your house property income can make all the difference. Here's a rundown of the key documents you'll need:

  • Rent Agreement: If you're receiving rent from your house property and it's listed in your Form 16, you'll still need to include it in your ITR.
  • Interest Certificate from Bank: To claim any deductions on home loans, you'll need to show the bank details highlighting both principal and interest payments.
  • Property Address: Make sure you have the address of the property to claim a deduction.
  • Co-Owner Details: If you have co-owners, you need to provide their details to increase the deduction amount you can claim.
  • Receipts of Municipal Taxes Paid: Keep the receipts for municipal taxes paid handy in case of any scrutiny.
  • Form 16A on Rent: This tax form covers any taxes deducted apart from salary, including those on rent. Keep a copy of your records for future reference.
  • Details of Pre-construction Interest: To accurately compute your tax liability, you'll need to highlight the interest paid on pre-construction. This interest can be claimed in five equal installments.
  • Documents Proving Ownership: When claiming a deduction for home loan interest, have documents ready that prove your ownership. This will help determine if you qualify.
  • Home Loan Processing Charges & Foreclosure Charges: These charges are considered monetary costs and shall be claimed as deductions under section 24(B) of the Income Tax Act, 1961.

Also Read: ITR filing: How to switch between old and new tax regimes

Documents Required To File Income Tax Returns In Case Of Capital Gains

While filing your income tax return, it's crucial to disclose all capital gains earned during the period, whether short-term (STCG) or long-term (LTCG). Here are the key documents you'll need:

  • Purchase and Sale Deed: Keep property details, including stamp valuation, for ITR purposes. Remember to keep receipts for any improvements you make. This will help you calculate your taxes accurately and claim deductions.
  • Transfer Expenses Incurred: Expenses incurred during the transfer of a capital asset are tax-deductible, so keep proof of these expenses. Other expenses, like brokerage, commissions, etc., should also be included.
  • Purchase Deed for Reinvestment: If you're reinvesting proceeds to buy another house property or invest in specific bonds (like NHAI bonds), you must submit these documents to claim the exemption.

Documents Required To File Income Tax Returns For Tax-Saving Investments

When talking about tax-saving investments, there are plenty of options available. Most of these fall under Chapter VI of the Income Tax Act, 1961. Here are the key documents you'll need:

  • Equity-Linked Savings Scheme (ELSS), EPF, PPF, Tax-Saving Fixed Deposits, Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Yojana: These can be claimed under section 80C, so keep all the details and documents handy.
  • Receipts of Donations Made: Keep receipts along with the donor's name, PAN, and address to claim the deduction.
  • Receipts for Education Loan Interest Paid: Get receipts from the bank for education loan interest payments. All interest paid on education loans is deductible under section 80E for up to 8 years.
  • Receipts for Medi-Claim Insurance (Self and Family): A deduction under section 80D applies to medical insurance paid for self and family.
  • Receipts for All Other Investments: Keep receipts for all other investments made during the year to claim deductions wherever possible.

Documents Required To File Income Tax Returns to Claim the Following Expenses as Deductions

  • Provident Fund Contributions: Keep records of your contributions to the Provident Fund.
  • Children's School Tuition Fees: Keep receipts for school tuition fees paid for your children.
  • Life Insurance Premium Payments: Keep receipts for life insurance premium payments.
  • Stamp-Duty and Registration Charges: Keep receipts for stamp duty and registration charges.
  • Principal Repayment on Home Loan: Keep records of principal repayment on your home loan.
  • Equity Linked Savings Scheme/Mutual Funds Investment: Keep records of your investments in Equity Linked Savings Scheme or mutual funds.

Remember, the maximum amount that can be claimed under Section 80C is ₹1.5 lakhs.