To prepare and self file ITR or personal tax returns an individual taxpayer should assemble and maintain various papers containing the required information for the last 12 months. Such information includes but is not limited to incomes, taxes paid, deductions clause, etc. This will mean that you will have all the relief under the various income taxing sections such as deductions and refunds the Act provides.
There is a necessity of having specific details of the income derived from different sources based on the filing category such as salaried individuals, self-employed, business owners, investors et al before submitting a tax return. Therefore you should have the documents in line before you submit the tax returns.
Important documents required for filing ITR
The important documents required to self file ITR are:
1. Identification and Personal Details
– PAN Card – Mandatory for filing ITR
– Aadhaar Card – Required to be quoted as per Section 139AA
– Active Bank Account Details – For issuing refunds directly
2. Proof of Incomes and Taxes Paid
– Form 16 (for Salaried) – Issued by employer with salary and TDS details
– Form 16A (for Non-Salaried Incomes) – Issued by banks, etc. for TDS on interest, FD etc.
– Form 26AS – Annual tax statement showing taxes deposited against your PAN
3. Income Related Documents
– Bank Statements, Passbook – To tally income like interest, dividend
– Rental Agreements – For rental income earned or loss claimed
– Capital Gains Statements (e.g. sale deeds, demat account statements etc.)
– Foreign Income Documents – For any overseas income
4. Claims and Deductions
– Home Loan Statements – For deductions on principal, interest repayment
– Donation Receipts – For claims under section 80G
– Investment Proofs – Like PPF passbook, LIC premium receipt, ELSS statements etc.
– NPS Statements – For additional tax benefit up to Rs. 50,000
5. Business/Professionals
– Income Statement, Balance Sheet
– Total Turnover details
– Form 26AS – To reconcile taxes paid
These documents need to be preserved to produce when required during scrutiny. Diligent maintenance of relevant documents and records will facilitate smooth processing to self file ITR.
Documents required to claim a deduction u/s 80C to 80U of income tax while filing ITR
The documents required to claim deductions under sections 80C to 80U to self file ITR in India:
Tax Saving Investments (Section 80C)
– Home Loan Repayment Statement: For principal repayment of up to 1.5 lakhs
– School/College Fee Receipts: For tuition fees paid for children
– PPF Passbook: Details contributions made to PPF account
– Life Insurance Premium Receipts: For premium paid for self, spouse and children
– ELSS Investment Statements: For investing in equity linked tax savings funds
– 5-year Tax Saving FD Certificates: For deposits made with banks/post office
– Sukanya Samriddhi Account: Passbook with details of deposits made
Health and Medical Expenses (Section 80D)
– Medical Insurance Premium Receipts: For health insurance of self, spouse, children and parents
– Healthcare/Hospital Bills: For medical expenditures incurred for senior citizen parents
Education Loan (Section 80E)
– Education Loan Repayment Statement: From banks detailing interest repayment
Donations (Section 80G)
– Donation Receipts: From charitable institutions qualified to claim 50% or 100% deduction
Savings for Girl Child (80C and 80U)
– Sukanya Samriddhi Account: Passbook showing deposits made and interest earned
Differently Abled Self/Dependents (Section 80U)
– Disability Certificate: Issued by competent medical authorities
Senior Citizen Savings (Section 80TTB)
– Bank Statement: Showing interest from savings account of senior citizens
Thus, diligent maintenance of these tax-saving investment documents and certificates is essential to claim all eligible deductions, reduce tax liability and maximize tax refunds.
Documents required for Capital gain Income
Capital gains refers to the profit earned when a capital asset like property, shares, bonds or mutual funds is sold for a price higher than its purchase price. Capital gains income need to be reported correctly in your Income Tax Returns as it is taxable.
The computation of capital gains requires proper documentation of purchase price, sale price and other costs. Following are the key documents needed for different types of capital assets to self file ITR:
Property/Real Estate
– Sale Deed/Conveyance Deed: Contains details of property transfer like sale consideration amount, date of transfer etc.
– Purchase Deed: Required for computation of capital gains using cost inflation indexation. Contains purchase price, stamp duty and registration charges paid.
– Documents on Improvement Costs Incurred: Any additional expenditure on repairs and renovations before sale.
– House Construction Expenditure Bills: For self-constructed property, capital gains will be computed based on land cost plus construction expense.
Shares/Stocks
– Demat Account Statement: Issued by broker annually containing details of share purchase and sale transactions during the year.
– Contract Notes for Share Transactions: Issued at the time of actual buy/sell containing quantity purchased or sold and the rate.
– Dividend Statements: Required if dividend reinvestment option was chosen to ascertain new shares allotted.
Mutual Funds
– Capital Gains Statement: Issued by AMC for each financial year showing NAV at purchase and sale date, units purchased/redeemed, capital gains/loss amount.
– Purchase Allotment Letters: Showing initial purchase details like number of units bought and allotment NAV.
Documents required for Income from House property
Income earned from owning real estate assets like houses, buildings, flats needs to be reported under the ‘Income from House Property’ head in your ITR. This includes rental income for let-out properties or notional rent for self-occupied homes.
The key documents that need to be maintained regarding house property income are:
1. Ownership Documents
– Sale Deed, Gift Deed, Inheritance Papers: To ascertain how the property was acquired, purchase considerations and date.
– Link Documents: If ownership was transferred like from parents, document linking to original owner required.
2. Construction & Improvement Costs
– Approved Plan, Permits from Authorities
– Construction and Improvement Expenses Bills: For capital gains computation in future.
3. Co-ownership Details
– Legal Heir Certificate: If inherited property from ancestors, co-owner details required.
– Ownership Ratio Documents: If co-owned property, share of ownership percentage necessary.
4. Loan and Interest Certificates
– Home Loan Sanction Letter
– Annual Loan Statement from Financier: Showing opening balance, principal & interest bifurcation, loan prepayment details.
– Pre-construction Interest Certificate: Interest paid before completion of construction can be claimed in 5 equal installments.
5. Rental Income Proofs
– Rent/Lease Agreement copy with tenant terms like rental amount, security deposits retained etc.
– Total Rent Received statement for year with tenant and dates details.
6. House Property Expenses
– Municipal Tax Receipts
– Maintenance bills paid to housing society etc.
Documents needed by a businessman or professional while filing ITR
The key documents needed by a businessman or professional to self file ITR:
1. Financial Statements
– Profit & Loss Account: Reflects business income and expenditures during the year
– Balance Sheet: Provides asset-liability position at year end
– Trading, manufacturing and profitability ratios
– Cash Flow Statements: Captures inflows-outflows from business, investing and financing activities
2. Statutory Audit Reports
– Tax Audit Report u/s 44AB: Needed if annual turnover exceeds Rs. 1 cr (Non-professionals) or Rs. 50 lakhs (Professionals)
– GST Audit Report: Mandatory if annual turnover > Rs. 2 cr
3. Tax Deducted at Source
– Form 26AS: Reflects all taxes deposited against PAN throughout financial year
– Form 16A/16B/16C: TDS certificates for taxes cut on payments received
4. Transaction Statements
– Bank Statement: Business transactions routed via bank accounts
– Total Sales during year: Invoices/bills issued to customers
– Total Expenses: Supplier invoices, rent receipts, staff payroll, utility bills etc.
5. Business Registration & Licenses
– GST Registration Certificate: For meeting GST compliance
– Import-Export Code (IEC): For traders engaged in export-import business
– Shop & Establishment License: For shops/commercial establishments
6. Investments & Loans
– Business Loans: Interest certificate from lenders like banks, NBFCs
– Business Asset Purchase Invoices: E.g. Machinery, furniture etc.
Thus, diligent maintenance of financial statements, statutory filings, taxes, registrations and business transactions records is vital for accurate income disclosures as well as claiming maximum eligible deductions by businessmen and professionals to self file ITR.
Conclusion
To self file ITR can seem like a daunting process given the various documents and information required. However, with early planning and diligent maintenance of all supporting statements as per income sources, claim deductions, tax payments as outlined above, taxpayers can ensure smooth sailing. So dedicate time for preparation to self file ITR, and maintain adequate records to reap benefits, reduce tax outgo and prevent future hassles from the tax department.
FAQS
1. What documents do I need to gather before filing my ITR without professional assistance? Income proofs, tax payment documents, deduction claims and personal ID as applicable based on income source.
2. Are there any risks or disadvantages associated with filing ITR without a CA?
Possibility of errors, omissions, inadequate documentation and lack of expert advice on complex situations.
3. How can I ensure accuracy and compliance to self file ITR without CA?
Self-education on latest rules, checking Form 26AS for taxes paid, detailed documentation and taking assistance if needed.
4. How does Startupfino integrate support for independent ITR filing into its broader range of services?
StartupFino has the best ITR filing software and other online ITR filing tools to help you file ITR while taking care of all deductions, exemptions and other possible gains from our services.
