ITR filing: Document checklist for filing Income Tax returns TIMESOFINDIA.COM

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Taxpayers are advised to file their ITR before July 31, 2019 to avoid any late charges/penalties The income tax department has made it mandatory to quote your Aadhaar number from April 1, 2019 while filing ITR

NEW DELHI: The deadline for filing income tax return (ITR) for the financial year 2018-19 is July 31, 2019. Taxpayers are, therefore, advised to file their ITR before July 31 to avoid any late charges/penalties. ITR filing procedure requires a lot of paperwork. Here are a list of documents that you must collect before filing the ITR for FY 2018-19.

1. Form 16
This year, ITR-1 is in sync with the new format of the Form 16. This means that the same details need to be copied from Form 16 to the ITR form. Form 16 consists of two parts - Part A and Part B. Part A comprises details of the tax deducted by your employer during the year, along with details of your PAN (Permanent Account Number). It also contains the PAN as well as TAN (Tax Deduction and Collection Account Number) of your employer. Part B of the form comprises break up details of your gross salary such as exempt allowances, perquisites, etc. However, if TDS has been deducted on payments other than salaries such as interest received from fixed deposits, recurring deposits, etc. over the specified limits as per the current tax laws, your bank (in case of fixed deposits) will issue your Form 16A, providing details of such deduction. In case of sale of property, the buyer will issue you Form 16B showing TDS deducted on the amount paid to you.

2. Form 26AS
Form 26AS contains details about the tax that has been deducted/deposited with the government on taxpayer's behalf by deductors (banks or employers). This is like your passbook which comprises information of all the taxes that have been deposited against your PAN. Form 26AS can be downloaded from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website. You should ensure that all the taxes deducted in FY 2018-19 are reflecting against your PAN in the form.

3. Aadhaar Card
The income tax department has made it mandatory to quote your Aadhaar number from April 1, 2019, while filing ITR. However, if you have applied for Aadhaar but not received it, then you can provide the enrollment ID in your tax return. Get Breaking News alerts on TOI app Offline mode, real-time notifications, and news briefs OPEN APP 70191394

4. Salary Slips
ITR 2 it requires individuals to specify the nature of salary income such as basic, dearness allowance, house rent allowance, etc. Hence, it is advisable to keep your salary slips handy.

5. Interest certificates issued by banks, post office
This year, the ITR forms require you to disclose the source of interest income earned, like interest earned on savings account, fixed deposits or any other income. Obtain the interest certificates either from the banks, post office branch or any other financial institution to know the total interest earned. Alternatively, your updated account passbook comprising details of interest credited to your account till March 31, 2019 can also be used if interest certificates are not available.

6. Proofs of tax-saving investments made

Tax-saving investments made under section 80C, 80CCC and 80CCD(1) during the FY 2018-19 can help lower your tax liability. The maximum tax-break one can claim under these three sections combined cannot exceed Rs 1.5 lakh in a financial year. Employees' Provident Fund (EPF), Public Provident Fund (PPF), National Pension Scheme (NPS) are some of the commonly availed tax breaks under section 80C.

7. Capital Gains

Report all gains incurred from sale of property, mutual funds, equity shares in your ITR. Long-term capital gain (LTCG) arising from sale of equity shares and equity-oriented mutual funds during FY 2018-19 and held for more than one year will be taxable, if it exceeds Rs 1 lakh. LTCG on equity will be charged at 10 per cent without indexation benefit, from FY 2018-19 onward, if the total exceeds Rs 1 lakh.

8. Details of your bank account
Details of all bank accounts -- bank name, account number, account type, IFSC code -- held by you need to given while filing the ITR. Be sure to enter the correct IFSC code to ensure smooth receipt of refund, if any. 59179600

9. Statement of home loan from bank/NBFC
Home loan statements are needed both as a proof and as a source of information for filing your ITR. It provides details of how much principal and interest has been repaid by you. Details like amount of interest paid on the home loan along with the rental income earned from that house property, if any, should be provided. Such interest paid can lower your tax liability under section 24 as you can claim a deduction up to Rs 2 lakh.

10. Documentary proofs to claim deductions under section 80D to 80U

There are certain expenses on which you can claim deductions under different sections of the I-T Act. Health insurance premium paid for self, spouse, children in FY 2018-19 are eligible for deduction under under section 80D -- up to a maximum of Rs 25,000 a year. However, if you have paid for the health insurance premium of your parents, then you can claim an additional deduction of Rs 25,000 or Rs 50,000 -- depending upon the age of the parents.