Tax filing season is around the corner. Considering that it is a cumbersome process for many, it is always good to start collecting important documents from the start and not wait till the last moment, when you are already burdened with so many other things. To help you take through the maze of filing taxes here are 7 important documents you should keep ready before filing income tax return (ITR). Also Read - ITR: Income Tax Return Filing Deadline For FY 2019-20 Extended To Dec 31, Check Details
1) Form 16
The first thing you need is Form 16, considering it forms the basis for filing your income tax return. It is given by your employer stating details about the tax paid on your behalf after taking into account your salary, deductions and allowances. Also Read - Who is a Senior Citizen? What Are The Income Tax Benefits For Them? All You Need to Know
The statement 26AS can be downloaded from the website of the department of income tax. It shows details of taxes deducted from your income by an employer, a bank, or even a tenant. It is advisable to always download your 26AS statement from the website and reconcile whatever TDS has been deducted with 26AS. In case of any mismatch pay the required tax so that no trouble arises at the later stage. Also Read - Deadline For Filling Income Tax Return For FY 2019 -20 Extended: Here's The New Date
3) Capital Gain Tax
If you invest in shares or mutual funds, get a capital gain statement from your broking house. It gives you detail about how much short-term capital gain you need to pay if you have exited the share or scheme before the expiry of one year. Remember, though long-term capital gain does not attract tax, you still need to mention it in ITR.
4) Home loan statement
You need to collect the loan statement if you have taken out a home loan. The break-up provided in the statement will help you to know how much deduction needs to be claimed for principal and interest. While principal amount can be availed as the deduction under section 80C, the interest amount up to Rs 2 lakh can be availed as the deduction under Section 24.
5) Aadhaar and PAN Number
Though it is not mandatory to link your Aadhaar with PAN, until the judgement of the Supreme Court is pending, it is advisable to keep it handy as you need to mention it in ITR form along with PAN. Aadhaar is also useful while e-verifying, as you just need to key in OTP that comes at your registered phone number.
6) Details of Savings Bank Account
You need to give details of your savings bank account in your ITR form. So be ready with all account information before you sit down to fill your ITR form
7) IT Login Details
Last but not the least, do not forget to keep login details handy for the website- www.incometaxindiaefiling.gov.in.
If you keep these things handy, you will be all set to file your income tax return much before July 31st.