The Buyt Desk
You have to file your Income Tax Return for the financial year (FY)2020-21 by 31st December 2021. Usually, the deadline is in the month of July but this year taxpayers are getting extra time due to two reasons. At first, the government extended the deadline from 31st July 2021 to 30th September 2021 in the wake of Coronavirus. Then a second extension until 31st December was given as the government’s new portal for return filing didn’t function smoothly and needed rectification.
If you are gearing up to file Income Tax Return (ITR) then you will be required to keep a few documents handy. Though when you file an online ITR you never have to attach any documents but you will have to refer to a few proofs of investment and transactions. Keeping these documents ready will help you in minimising mistakes.
There are nine documents in total that you must carry with you when you are filling your Income Tax Return.
1, Form -16 – If you are filing ITR for the first time, you must know about form 16. It is a TDS certificate that the employer issues to an employee. The certificate carries details of the salary that an employer had paid to an employee after the tax deduction and tax exemption, which he is eligible for. It is a mandatory document that an employer issues to an employee if he comes in the tax deduction category.
In case of no TDS deduction, an employee has to request the employer to provide form 16.
2, TDS Certificate and Interest Income – Form 16 comprises two parts: Part A and B. Part A have the details such as your pan number, PAN and TAN of the employer, tax deducted in a year. Part B of Form 16 asks for interest income received from different sources. If you have invested money, you must collect certificates from the respective bodies to gauge the total interest amount you have received in a financial year. Make sure to get certificates from each source even if tax is not deducted. In case of tax deduction, you need to collect your Form 16 or TDS certificate.
3, TDS Certificate From Other Incomes – In the property sell case, the buyer issues Form 16B, providing details of TDS deduction on the amount.
If the landlord is earning via rent, the tenant has to provide landlord Form 16C, having details of TDS deduction. The current law says an individual has to deduct TDS, provided that his monthly rent is above Rs 50,000. You can also check Form 26AS for more details on TDS.
For contractors, there is Form 16D. It is a TDS certificate issued to contractors or professionals when payment is made to them by an individual or HUF exceeding Rs 50 Lakh in the FY 2020-21.
The tax deduction, in this case, takes place while paying the commission, contractual payment, brokerage or professional fee.
For dividends received from companies or equity mutual funds exceeding Rs 5,000, the tax will be deducted. TDS certificate for that should also be with you.
4, Form 26S – Form 26AS is the consolidated annual tax settlement. The form is like your tax passbook having information of all taxes you have deposited against your PAN. It comprises
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TDS deducted by the employer
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TDS deducted by other organizations from the payment made to you.
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The advance tax which you have deposited in FY 2020-21.
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Self-assessment taxes.
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Tax deducted by banks.
Make sure your Form 26S has all the tax deductions done in FY 2020-21 against your PAN.
5, Expenditure Proofs, Tax-Saving Investment – If you are going with the old tax regime at the time of file income tax return , you must carry documents related to eligible expenditure and investments made during FY 20-21.
The health insurance premium paid for family, spouse or self in FY 2020-21 is also eligible for deduction under section 80D. You need to keep the receipt of the premium paid with you.
The loan statement for FY 2020-21. It includes all types of loans.
6, Captial Gains – Capital gains from the property sale, mutual funds, equity shares require reporting in ITR. Capital gain on house, land or building requires a sale deed or purchase deed.
Capital gain from property sale requires reporting in ITR-2. Here, the seller has to present the full details of the buyer.
Capital gain incurred by mutual funds, shares sale reporting requires a statement from concerning departments or brokers.
Capital gain accrued through the sale of bitcoin also requires reporting in ITR.
7, Aadhar Number – Section 139AA in the income-tax act makes it mandatory for the individual to present his/her Aadhar number while filing the ITR.
8, Investment Details For Unlisted Share – Unlisted shares holding also requires disclosure in ITR. In this case, you need to fill ITR-2 even if your source of income is salary or interest earned on bank accounts and provide the following details
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Company name
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Company PAN number
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Opening balance as on April 1 2020, and acquisition cost.
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Unlisted shares acquired in the year with its purchase date, shares face value, per share issue price, per share.
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Unlisted shares sold in FY 2020-21 and received amount.
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Closing balance on March 31, 2021, and acquisition cost.
9, Bank Account Details – It is a must for the individual filing ITR to provide the account details. It includes bank name, account type, account number and IFSC code.
