The government has extended the deadline for submitting an income tax return (ITR) to December 31, 2021 this year (from the usual July 31, 2021). This applies to most individual salaried and non-salaried taxpayers since it is for assessors who are not subject to audit. Let's take a look at the paperwork you should have on hand before submitting your ITR.
If you are a salaried individual, you will need to file Form 16 with your ITR. It is a legal document that must be sent to all salaried employees whose income tax is deducted at the source by their employer. Form 16 verifies that tax on wages is deducted at source under Section 203 of the Income Tax Act of 1961.
The employer's and employee's full addresses, their Permanent Account Numbers (PANs), the employer's Tax Deduction Account Number (TAN), the amount of tax deducted and submitted by the deductee for the applicable Assessment Year, and challan numbers are all listed in Part A of the form. Part B contains information on the salary received, any additional income, exemptions and deductions claimed, as well as the tax deducted, all of which are required to create and file your Income Tax Return.
Form 16A/Form 16B/Form 16C/Form 16D :
If you have earned interest income in excess of Rs 40,000 in a financial year and are a non-senior citizen who has not provided self-declaration in Form 15G, or if you are a senior citizen who has earned interest in excess of Rs 50,000 in a financial year and self-declaration in Form 15H is not furnished against bank term deposits, make sure to collect Form 16A from your bank
If your rental income exceeds Rs 2.4 lakh, you will have to pay tax. Before paying you rent, your tenant must deduct this tax at source (TDS). For example, if your monthly rent is Rs 50,000, your yearly rental revenue is Rs 6 lakh. Make sure your renter deducts the tax at source and gives you a Form 16C detailing the amount deducted.
Form 16B should be requested from the buyer if you have sold an immovable property (land, but excluding agricultural land/building/part of the building) with a value of more than Rs 50 lakh.
If you've been paid for professional services in the form of commissions, brokerage fees, contractual fees, or any other type of compensation, make sure you have Form 16A from the person or organisation that paid you.
For tax deducted at source on income other than pay, these certificates are provided under Section 203 of the Income-tax Act, 1961. They include information on the deductor and deductee, such as the deductor's name, residence, PAN, TAN, assessment year, period, and the amount of tax deducted and submitted with the federal government.
Form 26AS is a type of tax return that is used to calculate the amount A tax credit statement, also known as a tax passbook, is a document that shows how much money you have in your bank account. It contains details on...
Financial Transactions with a Specific Purpose
Taxes must be paid.
Demands and refunds for income taxes
The case is now closed.
Form 26AS consolidates the tax deducted from all sources (under Parts A1 and A2), details of tax collected at source (under Part B of the Form), advance tax paid by the assessee, self-assessment tax paid, regular assessment tax (under Part C of the Form), details of refund (if any) in the financial year (under Part D of the Form), details of certain high-value financial transactions (under Part E of the Form), details of Tax Deducted at Source o (under Part G of the Form). The income tax department's website-incometax.gov.in-has Form 26AS available for download.
Investment Proofs as Tax-Saving Instruments – If you invested in tax-saving investment instruments such as Public Provident Fund (PPF), National Savings Certificate (NSC), 5-Year Tax Saver Bank Fixed Deposit, Sukanya Samruddhi Yojana (SSY), Senior Citizen Saving Schemes, Equity Linked Savings Scheme (also known as tax-saving mutual funds), National Pension System (NPS), or paid a premium on life insurance policies or tuition fees for your child, etc. during the financial year 2020-21, you are eligible for Prepare investment statements, receipts, passbooks, and certificates related to these for ITR filing.
Capital Gain Statement –
If you made profits on investments in mutual funds, stocks, real estate, and/or gold throughout the fiscal year, you must declare these earnings on your capital gain statement (either Short Term Capital Gain or Long Term Capital Gain).
The capital gain account statement for mutual funds may be seen on the CAMs and KFintech websites (the Registrar & Transfer Agents). In the case of shares, you can obtain a statement from your stockbroker. Similarly, you can ask your Chartered Accountant or tax adviser to calculate capital gains on property and gold sold throughout the fiscal year.
Certificate of Payment for Health Insurance Premiums –
The premium for health insurance is deductible under Section 80D of the Internal Revenue Code. Per financial year, the exemption limit for you and your dependant family members, including parents, is Rs 25,000. The maximum deduction for senior citizens is Rs 50,000 every financial year. If your parents are elderly citizens and you are paying their health insurance premiums, you may be eligible for a tax deduction of up to Rs 75,000. To take advantage of this deduction, make sure you have downloaded the premium certificate from the health insurance company's website.
Certificate of Interest on a Home Loan -
If you have a house loan from a bank or a Non-Banking Financial Company (NBFC), you can deduct the interest paid on the loan up to Rs 2 lakh under Section 24(b). The principal amount returned throughout the financial year is deductible under Section 80C of the Internal Revenue Code. As a result, make sure you obtain the interest certificate from the bank or NBFC's website.
Certificate of Education Loan with Interest –
Get an interest certificate from the bank/financial institution or recognised charity institution where you took the education loan if you have an ongoing education loan or if you took one during the financial year. The interest paid on an education loan can be deducted under Section 80E for up to 8 years or until the loan is paid off, whichever comes first.
Receipts for Donations –
Section 80G allows you to deduct (50 percent or 100 percent of the donation amount) any donation you make to a specific fund, charity organisation, accredited educational institution, etc. throughout the fiscal year. If you want to claim a deduction under this section, make sure you have all of the relevant information. As a result, retain all of your donation receipts.
Passbooks from Savings Accounts -
The interest income received on the Savings Account can be deducted up to Rs 10,000 under Section 80TTA of the Income Tax Act of 1961. Interest income over Rs 10,000 is taxed according to your tax bracket under the heading 'Income from Other Sources.' The interest you earn on a savings bank account is not taxed at source by the banks. As a result, keep a copy of your savings account passbook on hand and ensure that you take advantage of this deduction when filing your ITR.
Ensure that all of your bank accounts are pre-validated and linked to your PAN, since only then will the Income Tax Department be able to provide e-refunds (if any).
Make sure your Aadhaar number is connected to your PAN. The new deadline has been set for March 31, 2022. Your ITR may not be processed if you fail to link the two.