If you are a salaried taxpayer, one of the most crucial documents needed to file your Income Tax Return (ITR) is Form 16. According to the Economictimes report, this certificate is issued by your employer and provides a detailed breakdown of your salary along with the taxes deducted and deposited on it as Tax Deducted at Source (TDS). It is mandatory for employers to issue Form 16 if they have deducted TDS from your salary during the financial year.
The report added that apart from Form 16, taxpayers must also collect other TDS certificates that apply to them, such as Form 16A. For instance, if the interest earned on fixed deposits in FY2022-23 exceeds Rs 40,000 (Rs 50,000 for senior citizens), the bank will deduct tax on it. Similarly, mutual fund companies issue Form 16A for the tax deducted on dividends paid during the financial year if it exceeds Rs 5,000.
While filing the ITR, taxpayers must provide a detailed breakdown of interest income received from various sources like savings accounts and fixed deposits. To ensure accurate reporting of income details and to claim tax deductions and exemptions for investments, it is essential to collect interest certificates from banks, post offices, and other financial institutions.
According to the report, an annual Information Statement (AIS) contains details of all the financial transactions conducted by an individual during a specific financial year. Taxpayers must download and verify the financial transactions from AIS to ensure that all incomes declared in the statement are correctly reported in the ITR form, as applicable to them.
Form 26AS, available on the new income tax portal, is a tax passbook that provides details of taxes deducted and deposited against your PAN with the government. It is crucial to cross-check the information in Form 26AS with the details in TDS and interest certificates to ensure accuracy.
To claim deductions while filing the ITR, taxpayers must collect proofs of tax-saving investments and expenditures. Note that an individual can claim tax-saving investments and expenses if they opt for the old tax regime at the time of filing ITR.
Reporting capital gains from the sale of property, shares, and mutual funds is essential when filing the ITR. Individuals with capital gains cannot file using ITR-1; they need to use ITR-2/ITR-3, as applicable. To compute capital gains on property sale, one would require the purchase deed and sale deed of the property.
According to section 139AA of the Income-tax Act, 1961, individuals are required to quote their Aadhaar number while filing ITR. If you have applied for an Aadhaar number but haven’t received it yet, you need to quote your enrolment ID in the ITR form.
If you have held unlisted shares during FY 2022-23, you must disclose that information in your ITR. In such cases, you cannot file your tax return using ITR-1; you must use the ITR-2 form.
Mentioning details of bank accounts held during FY 2022-23 is mandatory. Even if you have closed an account during the financial year, you must report it.
