Nine necessary documents in ITR


To make the filing of Income Tax Returns easier, one should keep the necessary documents handy. ITR-1 form is used by most of the salaried taxpayers and it comes with prefilled information.

However, it is important to cross-check the prefilled information before filling the Income Tax Return.

9 documents you should keep in hand before you start filing your Income Tax Return for Financial Year 2020-21.

1. Form-16

Form-16 consists of 2 parts 1) the tax deducted by your employer during the year, your PAN account details, your employer PAN and TAN detail.2) Details of your gross salary such as exempt allowances, perquisites, etc.

2. Interest income, Form 16 A from banks and post office

Interest income is received from different sources such as savings bank a/c, fixed deposit a/c, interest from RBI bonds (taxable), tax-exempted, PPF interest, etc.

If tax is deducted on the interest earned from fixed deposits, one should collect a Form 16 A/TDS certificate.

3. TDS certificates from other incomes

Form-16B issued by the buyer when an individual sold property showing the TDS deducted on the amount paid.

Form 16D is issued to contractors or professionals if the payment is made by an individual/HUF exceeding Rs 50 lakhs. The tax is deducted at the time of making payment for the commission paid brokerage paid contractual payment or professional fee.

4. Form 26AS

A consolidated annual tax statement includes:

a) TDS deducted by the employer, banks, other organizations from payments made to you;

b) Advance taxes deposited by you

c) Self-assessment taxes paid by you.

All the taxes deducted in FY 2020-21 should reflect against your PAN in Form-26AS.

5. Tax-saving investment, expenditure proofs

While submitting all the tax savings relating to claiming exemptions under section 80C, section 80D, and HRA exemption, etc., then such details will reflect in your Form 16. Health insurance premium paid for self, spouse, and/or children in FY 2020-21. Interest paid on the home loan can lower tax liability u/s 24.

6. Capital gains

Capital gain from the sale of property, mutual funds/ equity shares, Gains arising from selling of bitcoin then such transactions must also be reported in Income Tax Return.

7. Aadhaar Card number

According to section 139 AA of the Income-tax Act, an individual is required to mention Aadhaar Card number while filing Income Tax Return.

8. Details of investment in unlisted shares

It includes-

a) Name and PAN of Company

b) Opening balance on April 01 and the closing balance on March 31 of every Financial Year.

c) Unlisted shares acquired or sold during the year with their date of purchase/sell, face value, issue price per share (fresh issue) / purchase price all has to be mentioned.

9. Bank account details.

You are required to mention your bank name, account number, account type and IFS code, change of address, or even closing of your account.

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