As the deadline to file your income tax return (ITR) for the financial year 2023-24 approaches on July 31, 2024, it’s crucial for salaried individuals to be prepared. Filing your ITR correctly on the Income Tax Department’s e-filing portal, incometax.gov.in, requires understanding the necessary documents and forms. Here are the key documents and expert tips to ensure a smooth filing process.
Choose the Right ITR Form
Selecting the correct ITR form is vital. For salaried individuals:
- ITR 1 (SAHAJ): For residents with total income up to ₹50 lakh. Excludes income from multiple house properties, capital gains, company directorship, unlisted shares, foreign income/assets, or carried forward losses.
- ITR 2: For cases not covered by ITR 1, excluding business/professional income.
- ITR 3: For individuals with business or professional income.
- ITR 4 (SUGAM): For residents with total income up to ₹50 lakh, including presumptive business/professional income, salary, one house property, interest, and agricultural income up to ₹5,000.
Form 16 and Form 12BA
Form 16 details your taxable employment income and taxes deducted. Ensure it breaks down salary components, benefits (specified in Form 12BA), exemptions, and deductions to facilitate ITR filing.
Forms 16A, 16B, 16C
- Form 16A: Details taxable income (non-employment) and taxes deducted, like bank interest and rental income.
- Form 16B: Details taxes deducted on the sale of immovable property (excluding agricultural land).
- Form 16C: Details taxes deducted on rental income from house property.
- Form 26AS: Form 26AS is a consolidated tax statement from the Income Tax Department showing TDS on various incomes. Download it from the e-filing portal for a comprehensive tax view.
Annual Information Statement (AIS)
AIS is a summary of your financial transactions reported by banks and financial institutions. It includes details on interest, dividends, capital gains, advance/self-assessment tax paid, and refunds. Access it on the e-filing portal.
Housing Loan Certificate
If you have a housing loan, obtain a certificate from your bank detailing the principal and interest paid during the year. This helps claim deductions on housing loan interest and principal repayment.
Capital Gains Statement
For any capital asset sales, obtain details on sale price, purchase cost, and expenses to compute gains/losses. Online statements are available for share/security sales, while other asset sales require purchase/sale invoices. Ensure you have documentation for any exemptions claimed on long-term capital gains.
Donation Certificate for Section 80G Benefit
For donations, verify eligibility for deductions under Section 80G. Ensure receipts include the donee’s name, address, PAN, donation amount, and payment mode.
Chander Talreja, Partner at Vialto Partners, and Manavi Gupta, Director at Vialto Partners, emphasize the importance of these documents for accurate and efficient ITR filing. Stay organized and ensure you have all the necessary paperwork to avoid any issues with your tax return.
