Filing income tax returns (ITR) is a mandatory responsibility for every eligible taxpayer. It helps the government in assessing an individual’s tax liability and ensuring compliance with tax laws. As the new assessment year (AY) 2023-24 begins, it is essential for taxpayers to gather the necessary documents and information to file their ITR accurately. In this article, we will discuss the key documents and information required for filing ITR for AY 2023-24.
- Personal Information: The first step in filing your ITR is to provide accurate personal information. This includes your name, address, contact details, and permanent account number (PAN). Make sure to update any changes in personal information to ensure seamless communication with the tax authorities.
- Form 16/16A: Form 16 is one of the most important documents for salaried individuals. It is provided by the employer and contains details of the salary paid, tax deducted at source (TDS), and other allowances. If you have switched jobs during the financial year, make sure to collect Form 16 from each employer. Form 16A is similar to Form 16 but is applicable for non-salaried income, such as income from fixed deposits or rental income.
- Income Proof: To accurately calculate your taxable income, you need to provide proof of various sources of income. This includes salary income, rental income, business income, capital gains, and any other income earned during the financial year. Gather relevant documents such as salary slips, rent agreements, bank statements, and financial statements to support your income claims.
- Bank Statements: Bank statements are crucial for validating your financial transactions and ensuring that your income matches the amount reflected in your ITR. Collect bank statements for all your bank accounts, including savings accounts, current accounts, fixed deposits, and any other relevant accounts. Make sure the statements cover the entire financial year.
- Form 26AS: Form 26AS is a consolidated statement of your tax credits available with the Income Tax Department. It provides details of TDS deducted by employers, banks, or any other deductor, as well as advance tax and self-assessment tax paid. Verify the details in Form 26AS against your own records to avoid any discrepancies.
- Investment Proofs: Taxpayers can claim deductions under various sections of the Income Tax Act by investing in specified instruments. Gather documents supporting your investments in instruments such as Public Provident Fund (PPF), National Savings Certificates (NSC), Tax-saving Fixed Deposits, life insurance policies, and equity-linked savings schemes (ELSS). These documents are essential to claim deductions and reduce your tax liability.
- House Property Details: If you own a house property, you need to provide details such as the property’s address, ownership details, and income earned from rent, if any. Additionally, gather documents related to home loan interest paid, such as loan statements and interest certificates, as they are eligible for deductions.
- Deduction Proofs: To claim deductions, you must gather relevant proofs for expenses incurred during the financial year. This includes proofs for medical insurance premiums paid, education loan interest, donations made to eligible charitable organizations, and any other eligible deductions.
- Capital Gains: If you have made investments in stocks, mutual funds, or other capital assets and have realized gains or losses, you need to provide details of these transactions. Gather documents such as contract notes, purchase and sale invoices, and mutual fund statements to accurately report your capital gains.
- Form 15G/15H: If you have earned interest income from fixed deposits or recurring deposits and want to avoid tax deduction at source (TDS), you may need to submit Form 15G or Form 15H. These forms declare that your total income is below the taxable limit, and hence no TDS should be deducted.
- Aadhaar Card: Linking your Aadhaar card with your PAN is mandatory for filing ITR. Make sure your Aadhaar card is up to date and accurately linked to your PAN. This can be done easily online through the Income Tax Department’s e-filing portal.
- Bank Account Details: Provide details of your bank accounts, including the account number, IFSC code, and bank name, for receiving any tax refunds directly into your account. Ensure that the bank account details are accurate to avoid any delays or issues in receiving refunds.
- Previous Year’s ITR: It is advisable to keep a copy of your previous year’s ITR as a reference. It can help you identify any changes in income or deductions and ensure consistency in your tax filings.
- Foreign Assets and Income: If you have any foreign assets or income, such as foreign bank accounts, overseas investments, or rental income from properties abroad, you need to provide details of these assets and income in your ITR. Keep documentation related to foreign assets and income, including bank statements, investment statements, and rental agreements, to accurately report them in your tax return.
- Business and Profession Details: For individuals engaged in business or profession, additional documentation is required. Gather documents related to business income, such as profit and loss statements, balance sheets, and audit reports. If you are a self-employed professional, collect invoices, receipts, and bills for services rendered. It is crucial to maintain proper accounting records to support your business income claims.
- GST Details: If you are registered under the Goods and Services Tax (GST) regime, provide your GST registration details while filing your ITR. Ensure that your GST returns are filed on time and that the details in your ITR match the information provided in your GST returns.
- Digital Transactions: In recent years, the government has been promoting digital transactions to curb black money and promote transparency. If you have made significant digital transactions, maintain records of receipts, bank statements, and any other relevant documents. These records may be required to substantiate your financial transactions and reconcile your income details.
- Proof of Taxes Paid: Apart from TDS, you may have paid other taxes such as advance tax or self-assessment tax during the financial year. Keep records of tax payment challans or receipts as proof of these payments. These documents are necessary for claiming tax credits and avoiding any disputes related to tax liabilities.
- Disability Certificate (if applicable): If you or any dependent has a disability and you want to claim deductions under Section 80U or 80DD, you need to provide a disability certificate issued by a competent medical authority. Make sure to obtain the necessary certificate and keep it safely with your tax records.
- Form 10E (if applicable): If you are claiming relief under Section 89(1) for arrears of salary or any other income, you need to file Form 10E. This form provides details of the arrears and calculates the relief to be claimed. Ensure that you have filed Form 10E if you are eligible for this relief.
- Other Supporting Documents: Depending on your specific financial situation, there may be additional documents required for filing your ITR. For example, if you have received any inheritances, gifts, or lottery winnings, gather relevant documents to substantiate these transactions. Additionally, if you have any tax-related disputes or pending assessments, keep copies of relevant notices, orders, or correspondence with the tax authorities.
- It is essential to keep all the documents and information mentioned above in a safe and organized manner. Maintain both physical copies and digital backups to ensure their accessibility and security. Remember to cross-check the information provided in the documents with the details entered in your ITR to avoid any errors or inconsistencies.
- Filing ITR accurately and with complete documentation not only helps you comply with tax laws but also enables you to claim all eligible deductions and exemptions, reducing your tax liability. Additionally, it facilitates a smoother and faster processing of your tax return and minimizes the chances of scrutiny or notices from the tax department.
- In conclusion, as the new assessment year begins, start gathering the necessary documents and information for filing your ITR for AY 2023-24. Be proactive in organizing your financial records, seek professional advice if needed, and file your ITR on time. By doing so, you contribute to a transparent and accountable tax system while fulfilling your tax obligations responsibly.
