The due date to file your Income Tax Return (ITR) is fast approaching. To avoid last-minute mistakes, ensure you keep relevant documents ready. Keeping the ITR documents ready can help you avoid mistakes and make the tax filing easier.
Therefore, before you get down to filing your ITR for AY 2022-23, here’s a checklist of the important documents you must keep handy for reference.
PAN and Aadhaar Card
While filing the ITR, your name, as mentioned on the PAN card, should match the ITR details. If you are expecting a TDS refund, it’s crucial to have a bank account updated with your PAN details to receive the refund amount. You can also file the return using your Aadhaar card. Aadhaar-based OTP is also the easiest way to e-verify your returns. So, it’s prudent to keep both the documents handy.
Form 16 and Form 26AS
Form 16 contains information related to your salary and the TDS deducted by the employer. It also contains the salary structure details such as allowances, perquisites, etc. Don’t rely only on Form 16 while filing the return. Also, make it a point to look at Form 26AS, which is your consolidated tax statement covering details of all tax paid by you, including TDS on deposits. Check the TDS amount mentioned in Form 16 and match the same with Form 26AS. The difference in TDS can happen when the deducted amount has not been deposited to the I-T Department.
There can be several reasons for the mismatch in TDS amounts in Form 16 and Form 26AS. For example, the deductor may have missed out on depositing the TDS, or you may have mentioned the wrong PAN detail to the deductor, or most commonly, you may not have included the additional interest amount from your investments while computing advance tax. So, find out the mismatch in the TDS amount in Form 16 and Form 26AS, and take appropriate measures to rectify the same.
Bank Account Statements
A bank account statement shows you the details of all the transactions that happened through your bank account during the financial year.
Adhil Shetty, CEO, Bankbazaar.com, says, “Keep all bank account statements ready with you while filing the ITR. You will get details such as interest earned in your saving account, dividends given by the company, and other income receipts and crucial payment details, which you may need for ITR and many other important transactions, from your bank account statement.”
Details Related To Tax-Saving Instruments
If you had made tax-saving investments during the relevant financial year and are looking to claim deduction against it, then it’s essential to provide the details while filing the ITR. For example, proof of tax saving investment u/s 80C such as investment in PPF, life insurance, ELSS fund, etc., should be kept at hand when filing your ITR.
Similarly, preserve the proof of other tax saving instruments such as the premium paid for health insurance to claim deduction u/s 80D, interest paid on education loan for deduction u/s 80E, interest and principal paid on home loan to claim deduction benefit u/s 24 and u/s 80C, respectively. You can also claim tax benefit against the tuition fee paid for your child’s education u/s 80C. So. safely preserve the fee receipt for proof.
There should not be any mismatch between the salary structure you have received from the employer and the detail that you mention in the ITR. So, always keep the salary slip handy while filing the ITR. The salary slip contains the details such as basic payment, DA, TDS, HRA, etc., and can help you avoid mistakes while filing your ITR.
Based on the financial transactions you have undertaken over the financial year, you may also need some other documents related to your tax profile while filing your ITR. For instance, if you have liquidated investments in shares or mutual funds, you will need to furnish the details of capital gains received. So, keep the details of capital gains from sale of equities, properties, etc., ready while filing the ITR. It is best to download the capital statement beforehand and calculate the tax payable beforehand. It can be a complicated calculation, and you do not want to make any calculation errors in the last minute.
These are some documents you must keep handy for quick reference while filing your income tax return. By no means is this a complete list. Depending on your job/profession, you may also need to refer some additional documents while filing your ITR. Keeping all your documents ready in advance can save a lot of time and help you avoid making mistakes while filing your returns.