Filing income tax returns (ITR) may come across as a daunting process but if you collect and organise all your documents, it's a fairly simple process.
The Centre provides four months to compile all income tax return documents. The deadline for filing income tax returns for the FY19-20 has been extended till November 2020.
Here are the important documents you should be organise to file your income tax returns:
Form 16
Form 16 is an essential document for all salaried individuals for filing income tax returns. The form is by the employer to the employees and is mandatory for the employer to do so.
Form 16 is issued to employees from whom income tax is deducted at source (TDS) and carries the details of the salary paid to the employee and their TDS.
The form consists of two parts – Part A and B. Part A is the portion that consists of the income tax deducted by the employer in the financial year. It also states the Permanent Account Number (PAN) details of the employee and the Tax Deduction Account Number (TAN) of the employer. Part B of Form 16 includes the break-up information of the employee’s gross salary.
Form 26AS
Form 26AS contains the amount of the TDS of the salaried class and taxes paid during the financial year.
Taxpayers can refer to their Form 26AS and tally it with their Form 16 for the amount of taxes they paid to the treasury of the central government while filing the ITR.
Using PAN, all taxpayers can easily access it from the income-tax website.
Medical Insurance
Under Section 80D for payment of health insurance premiums, you can claim up to Rs 25,000. These insurance policies could be for yourself, your spouse, or your children. In the case of senior citizens, the limit is Rs 50,000.
Individuals can claim additional deductions under Section 80D if you are paying premiums for your parents insurance. The limit is Rs 25,000 if your parents are less than 60 years of age.
Tax Saving Investments
Individuals who were unable to submit their tax-saving investments to their employers during the stated period in the previous financial year can submit a proof directly to the Income Tax department for the correct tax deductions.
The tax saving proofs can include receipt of life insurance (LIC) premium paid, receipt of medical insurance, Public Provident Fund (PPF) passbook, five-year FD receipts, mutual funds investment (ELSS), home loan repayment certificate/statement, donation paid receipt, tuition fee paid receipt.
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