All you tax payers, have you filed income tax returns (ITR) for the financial year 2020-21? If not, it is mandatory to do it before December 31 as this is the ITR Filing Deadline. We suggest that taxpayers should not wait for the last moment because if you miss the deadline to file the IT return, you may invite a penalty. This penalty can create problems for all taxpayers.
The procedure of filing Income Tax Returns in India requires time and adequate preparation. Hence, the Government usually gives you a few months window period to compile all documents. For example, salary/income details, bank statements, earlier tax statements, etc. However, the procedure varies as per the income earned per year and also on the source of income like salary, investment profit and so on.
Linking your PAN and Aadhaar is a crucial part of the e-filing process. To file ITR, the Taxpayers have to choose the ITR form applicable to them. Along with the form the taxpayer is supposed to submit a list of documents.
Documents for Salaried Employees
If you are a salary earning employee, you must provide documents such as, Form 16 and monthly salary slips. The Form – 16 is a document issued by your employer. This piece of document provides the details of your annual income and taxes deducted from your salary. It acts as a proof of tax paid on time and proves that the income of an individual employee is valid and on records with the Indian government and Income Tax department.
Additionally, you are required to gather the information on all taxable allowances you have received. For example, the exemptions claimed on house rent allowance, leave travel allowance, etc.
Documents Related to Interest Income
In order to evaluate your interest income, you must be ready with the documents such as bank statements/passbook for interest on a savings account. You also need documents such as interest income statement for fixed deposits, and TDS certificates issued by banks and others.
Form 26AS is an important document that contains all tax-related information of the taxpayer like TDS, advance tax, tax refunds received, etc. It is a yearly financial statement provided by the Income tax department.
The investments made under ELSS, PPF, LIC, etc. qualify for deductions. These deductions are applicable under the section 80C of the Income Tax Act, 1961. Therefore, you must consider preserving the receipts and documents for a safer side as proof towards your investments.
There are few other documents necessary while filing the ITR that varies for every taxpayers.
Interest Certificate for Home Loans – You must note that the interest paid on housing loan is eligible for tax saving up to Rs 2,00,000 for self-occupied property. But, for let out or deemed to be let out property there is no specific limit of interest on housing loan.
Capital Gains Tax – It is applicable after selling any capital assets. For example, shares, mutual funds, and gold, etc. It is important to possess the documents related to any such transactions for capital gains tax liability.
Donation Receipts – The government encourages support for charitable services under section 80G of the Income Tax Act of 1961. This is done by allowing you a ta
x deduction for donations made to charitable organizations. You must maintain all your donation receipts as documents required while filing your income tax return last date India.
Additionally, you should be ready with your documents regarding your income from other sources, information of any extra deductions, education loan interest payments, etc.
To know more about income tax ITR filing due date and the documental details, you must get in touch with an income tax consultant.
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