- The PAN number is used to login at https://incometaxindiaefiling.gov.in/.
- PAN number is necessary in income tax return (ITR) forms
Relevant column in ITR-1: A4
Use of Form 16
- TAN of the employer
- Get Taxable salary
- Total deductions, if reported accurately to the employer.
Relevant Columns in ITR-1: B1, C1-C19, TDS1
This form is issued by the tax deductors, other than the employer. There may be some payments which are given to you after the TDS. For example, any commission or bank interest is given to your after the tax deduction. You should have this TDS details with you, The deductors give these details in form 16A. If you have not got it, ask to the deductor.
Use of Form 16A
- Other income
- TAN of the Deductor
Relevant Columns in ITR-1: TDS2
This is a very important document, however, it is overlooked by most of the filers. This form contains the details of all the tax paid against your PAN. You should use this document to tally the TDS of form 16 and form 16A.
You can access the form 26AS online through the incometaxindiaefiling.gov.in
Relevant Columns in ITR-1: TDS1, TDS2, TDS3
Bank Passbook/ Statements
You are required to fill the bank account details in the income tax return. Therefore, you should keep all the passbook before filing income tax return. Since, interest earnings of more than 10,000 is also taxable, you should also calculate it. The aggregate interest income should be entered in the other income column.
Use of Passbook
- Banks account numbers
- IFSC code of the bank account
- Balance in the account
- Accrued Interest on Saving Account
Relevant Columns in ITR-1: B3 & D20
Fixed Deposit Statement
You may not get the passbook of a fixed deposit, but the interest income on fixed deposit is also taxable. Therefore, you must have the value of interest earning of FD or RD of the given financial year.
Use of FD statement
- Accrued interest during the financial year.
Relevant Column in ITR-1: B3
Proof of Investment under Section 80C
The proof of investment under section 80C varies from person to person. It depends upon the tax saving methods, you might have claimed for tax saving. Normally, the salaried taxpayers give these proofs of investment to their employer. According to the given proof the tax is deducted. On the basis of these proofs the total deduction on form 16 is mentioned. However, you may miss to give proof of investment to your employer, In such case, these proofs can be referred to fill the correct deductions while filing income tax return. These proofs can be of the following types.
- PPF receipts
- Insurance Receipts
- ELSS Receipts
- Home loan statement
- Sukanya Samriddhi Account passbook
- SCSS passbook
- Tuition Fees Receipt
- Annuity or pension plan statement
Relevant Columns in ITR-1: C1, C2
Proof To Avail Exemptions
There are some allowances and perks which are not part of your taxable income. But you are required to give the proof of actual expense.
- House Rent Receipt for HRA
- Medical Expense Receipts
- Tickets For LTA
Proof of Home Loan Interest
Home loan interest is eligible for further tax deduction. You can use interest of up to Rs 2 lakhs for tax deduction. But you are required to produce the home loan statement to avail this benefit. The interest of home loan is entered in the column of income from property. The interest value should be filled in negative.
Relevant Column in ITR-1: B2
Proof of investment under Section 80E
Interest Paid on Education loan is tax deductible and can be claimed under Section 80E. You have to keep the statement of education loan to avail this tax benefit.
Relevant Column in ITR-1: C9
Proof of Investment under Section 80D
The medical insurance premium of self, family and parents are also eligible for tax deduction under section 80D. It is over and above the 80C limit. You should keep the Premium receipt to claim this tax benefit.
- Medical Insurance premium on self
- Medical insurance premium on family
- Medical insurance premium of parents
Relevant Column in ITR-1: C6
Share Transaction Statement
If you have made any profit by selling shares, it is considered capital gains. The tax is levied on short term capital gains of the stocks. Selling stocks within a year is short term capital gains. You have to calculate the short term capital gains from the stock statement. Most of the online stock distributor provides a capital gains statement of every financial year. You can login to the trading portal and access the capital gains statement. Use the short term capital gains value to file the income tax return in ITR-2.
Relevant sheet in ITR-2: Schedule CG
The income tax return filing is a self declaration. In the income tax return form you tell about all of the income, applicable exemptions, eligible deductions and all the capital gains. The income tax department tallies the given information with its intelligent data. If it finds any discrepancy in the income tax department sends the notice and ask the proof of your declarations.
Hence, If you are stating something in income tax return, you should have the proof to prove your statement. It is as simple as that. You need not to give any proof upfront, But if asked, you are required to produce the proofs. Therefore, to avoid any tax notice or tax tangle, you should give the correct information and keep all the proofs safely. The income tax department can open a tax case up to 6 years back. Hence, you should keep all the proofs for at least 6 years.