ITR filing: 10 documents a taxpayer requires to file returns

New Delhi: Each year, a salaried individual is required to file an income tax return and the I-T department has been making efforts to ease the process of filing ITR. The steps taken by the department include offering pre-filled ITR forms.

It must be noted that an individual needs to have the following documents ready with them while filing their ITR this year.

This is a TDS certificate issued by the employer having details of the salary paid, taxes deducted and deposited during the financial year. An employer is required to furnish Form 16 if taxes have been deducted by him/her. The last date of issuing Form 16 by an employer is June 15.

Form 16 consists has two parts: Part A and Part B. Both must be downloaded from the TRACES portal of the I-T department.

Apart from Form 16, individuals must also collect other TDS certificates that apply to them. If the interest earned on FDs in FY 2021-22 surpasses Rs 40,000/Rs 50,000 in case of senior citizens, the bank will deduct tax on it. The bank will also be required to issue Form 16A to the individual for the tax deducted.

Additionally, the individual will also get Form 16A from mutual funds and companies for the tax deducted on the dividends paid during FY 2021-22, provided it exceeds Rs 5,000. Likewise, individuals receiving monthly rent of Rs 50,000 or more, should get Form 16C (TDS certificate) from their tenant. Those who sold land and property during FY 2021-22 should ask their buyer to furnish Form 16B for tax deducted on the amount.

It must be kept in mind that TDS is a must if the property is sold for over Rs 50 lakh.

While filing the ITR, individuals are asked to give the break-up of the interest income received from different sources like savings account, fixed deposits, etc. Hence, they must collect interest certificates from banks, post office and other financial institutions and report correct income details in ITR and also claim tax deductions and exemptions.

In case the interest certificate is not available, individuals should make sure to update and check the bank passbook/s.

An individual can claim a deduction of Rs 10,000 under section 80TTA for interest earned on savings account. However, interest earned from fixed deposits, recurring deposits, RBI taxable bonds etc. are fully taxable in the hands of an individual.

Launched in November 2021 by the income tax department, this statement contains details of all the financial transactions conducted by an individual in a particular financial year. It has additional information relating to interest, dividend, securities transactions, mutual fund transactions, foreign remittance information etc.

The taxpayers must download and cross check the financial transactions from AIS to ensure that all the incomes mentioned in the statement are reported in the ITR.

Individuals must download Form 26AS from the new income tax portal. It is like a tax passbook that contains details of the taxes deducted and deposited against your PAN with the government.

Taxpayers must also tax-savings investment and expenditure proofs to claim deduction while filing ITR. Do note that an individual can claim tax-saving investments and expenditures if they choose for the old tax regime at the time of filing ITR.

Capital gains earned from the sale of property, shares, mutual funds have to be reported while filing ITR. As per the notified forms, an individual having capital gains cannot file tax return using ITR-1; he/she will have to use ITR-2/ITR-3, as applicable. This year ITR forms ask the taxpayer information relating to sale of building, this includes:

A) Date of purchase and sale of land/building.

B) Details of the year in which the money was spent on improvement,

C) Details of cost of acquisition and indexed cost of acquisition

D) If the property situated outside India is sold, then buyer details are required in the ITR form.

Taxpayers who have sold shares in FY 2021-22 can get the capital gains statement from their broker. This year, crypto traders will also be required to report gains arising from such transactions.

According to section 139AA of the Income-tax Act, 1961, an individual is required to quote his/her Aadhaar number while filing ITR.

If you have unlisted shares during FY 2021-22, then you will have to disclose that information in your ITR and will have to use ITR-2 form.

The taxpayer is required to fill in details of the bank account(s) held by them during FY 2021-22. Even if you have closed your account during the financial year, you will have to report it.