Even though the last date to file the ITR for FY 2024-25 (AY 2025-26) has been extended, it is essential to collect all the required documents on time to file the ITR. Collecting the documents is the first step in the process of filing an ITR.
The documents collected for filing ITR inform you about your sources of income and which ITR form to use to file your income tax return correctly. Furthermore, the documents help you cross-check the information available with the Income Tax Department. This is done by cross-checking the information about income and tax in the TDS certificates with Form 26AS, Annual Information Statement.
Here’s a list of the important documents that you should start collecting now so that you can file your tax return this year on time and easily. This list is not exhaustive, as you may need to collect additional documents depending on your sources of income.
1. Form 16: Tax deducted from salary
Form 16 is one of the important documents required to file ITR for salaried individuals. Salary is received after tax has been deducted by the employer. An employer is required to issue Form 16 to the employee as a certificate of tax deducted on salary for the financial year.
Form 16 helps salaried individuals easily verify or cross-check the salary information that is normally pre-filled or uploaded in the online ITR form on the ITR e-filing portal. Form 16 provides information regarding the total salary paid during the financial year, the total tax deducted during the financial year, deductions claimed (depending on the tax regime and if claims are submitted with proofs to the employer), and other relevant details.
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2. Form 16A, Form 16B, Form 16C, Form 16D: Other TDS certificates
Apart from Form 16, a taxpayer may need to collect other TDS certificates depending on the sources of income.
For instance, Form 16A is issued by deductors if tax is deducted on other incomes, such as interest from fixed deposits, life insurance commissions and income from lotteries, among others.
Similarly, Form 16B is issued to the seller of a property by the buyer if the value of the property purchased exceeds Rs 50 lakh. In such a case, the buyer is liable to deduct tax from the payment to the seller and, consequently, would have to issue Form 16B to the seller.
A tenant issues TDS certificate Form 16C to the landlord or owner of the house. The tenant is required to deduct tax on rent paid to the landlord if the monthly rental amount exceeds Rs 50,000.
“Form 16D is a TDS certificate issued if the tax is deducted under Section 194M of the Income Tax Act. Tax under Section 194M is deducted on payments of commission, brokerage, contractual fees, and professional fees. Similarly, Form 16E will be issued to the seller of a virtual digital asset (VDA), such as Cryptocurrency, by the buyer of the VDA for the tax deducted on the payment. A tax on the buying and selling of VDA is applicable if all transactions in VDAs of an individual exceed Rs 10,000 in a financial year,” says Abhishek Soni, CEO of Tax2Win.in – an ITR filing website..
3. Capital gains statement
If you have sold any financial capital assets such as equity shares, mutual funds, etc., then capital gains arising from the sale of those assets are required to be reported in your income tax return form.
To ease the process of filing ITR, you should collect the capital gains statement from your stockbroker or mutual fund house. The capital gains statement will help you to ascertain whether the capital gains are short-term or long-term in nature.
Remember that the capital gains taxation rules have changed from July 23, 2024. If you have sold equity shares and mutual funds on or before July 22, 2024, then the old capital gains tax rules will apply. However, if assets are sold on or after July 23, 2024, then new capital gains tax rules will apply.
Hence, obtaining the capital gains statements will help you understand which capital gains are subject to the old rules and which are subject to the new rules for tax purposes.
4. Annual Information Statement (AIS) and Form 26AS
A taxpayer should also download AIS, Taxpayer Information Summary (TIS) and Form 26AS from the income tax e-filing website. AIS and Form 26AS are important documents that ease the ITR filing process for taxpayers.
Form 26AS is the tax passbook that shows the TDS and TCS details for a particular financial year. All the tax deducted from an individual’s income and tax collected from specified expenses of the individual will be reflected in the individual’s Form 26AS of a particular financial year.
Similarly, taxpayers should also download AIS and TIS from the income tax e-filing website. AIS and TIS both contain the same information; however, the way the information is presented is different.
AIS is a comprehensive statement and is an extension of Form 26AS. It provides additional information such as savings account interest, dividends, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, etc.
TIS is almost a summary of AIS. It provides a category-wise aggregated information summary for a taxpayer, making it easier to read.
Downloading and checking all three documents ensures that the correct information is available with the Income Tax Department. In case there is anything inaccurate the taxpayer can try to get it corrected by giving feedback to the income tax department.
5. Documents relating to foreign income and unlisted shares for information purposes
If you have invested in the shares of a foreign company, then income from such sources must also be reported in your ITR. Reporting of foreign assets is mandatory for resident individuals as per the income tax rules.
Taxpayers should remember that filing an ITR is mandatory if they have foreign assets or hold signing authority in a foreign bank account. This income tax rule applies regardless of the total taxable income.
Taxpayers who invest in unlisted equity shares must file their tax return using ITR-2. The ITR form also requires information regarding unlisted shares, including the name of the company, the number of shares purchased during the financial year, the number of shares sold during the financial year, and other relevant details.
6. Interest certificates and bank statements
Taxpayers should collect interest certificates from banks, post offices and deposits held with any other institutions. Apart from this, they should also download bank statements for the FY 2024-25.
The interest certificates and bank statements will help to verify the information available in the AIS regarding interest income and dividends. Furthermore, bank statements can help them identify any income that is not reported in the AIS, TIS, and Form 26AS.
An individual can receive interest income from various sources, in addition to banks. These include interest earned from investments in post office schemes, RBI floating rate bonds, and sovereign gold bonds, among others.
7. Tax-saving investments, expenditure proofs
Taxpayers planning to opt for the old tax regime while filing their ITR should also collect information and proof regarding tax-saving investments and expenditure.
Under the old tax regime, taxpayers can claim deductions under Section 80C, 80CCD (1B), 80D, 80DD, and 80TTA, as per their eligibility. Further, an exemption can be claimed on House Rent Allowance, Leave Travel Allowance, etc.
If you are repaying a home loan, then collect the home loan repayment certificate from the bank or NBFC to be able to claim deduction on home loan interest payments.
The income tax laws allow only two deductions under the new tax regime. Salaried taxpayers can claim standard deduction of Rs 75,000 and deduction under Section 80CCD(2) (Employer’s NPS contribution for up to 14% of basic salary).
These two deductions are generally mentioned in the Form 16 if salaried individual has opted for the new tax regime for TDS on salary.
8. PAN, Aadhaar and Bank accounts
A taxpayer should keep PAN, Aadhaar and bank accounts details i.e., name, Account number, IFS code handy.
To log in or register on the income tax e-filing portal, taxpayers must mention their PAN or Aadhaar. Any tax deducted or collected from the taxpayer during the year is deposited on the basis of the taxpayer’s PAN. The correct PAN must be mentioned in the ITR form while filing the tax return. In the online ITR form on the e-filing portal, the PAN will automatically reflect in the form.
If you are registering on the income tax portal for the first time, then your PAN-Aadhaar must already be linked.
Mentioning the Aadhaar number is mandatory in the ITR form. This year, the provision of mentioning the Aadhaar enrolment ID has been removed in the ITR forms. Hence, mentioning the Aadhaar number is mandatory.
A taxpayer must report all the active bank accounts held by him/her during the FY 2024-25. Reporting of bank accounts is mandatory irrespective of whether there is an income tax refund or not. A taxpayer is required to mention the names of the banks, account numbers, account type and IFSC codes in the ITR form. Hence, you should keep all these details of all your bank accounts handy before you start the ITR filing process.
