Income Tax Return AY 2024-25 Filing: 7 Important Documents Required For ITR, What Are They?

Income tax return (ITR) is mandatory for every taxpayer to be filed every financial and assessment year. For ITR filing Assessment Year (A.Y.) 2024-25, the CBDT has revised all ITR forms 1 to 6 which has come into effect from April 1, 2024. These changes have been incorporated into the ITRs in order to facilitate the taxpayers and to improve ease of filing. That being said, the due date for filing ITR for AY 2024-25 is scheduled on July 31, 2024. While filing for ITRs, a taxpayer should ensure they have the right documents with them to ensure a seamless and swift process.

Here are the list of revised ITR forms:

ITR-1 (SAHAJ) can be filed by resident Individuals having a total income of upto Rs. 50 lakh and having income from Salaries, one house property, and income from other sources. Individuals and HUFs not having income from business or profession [and not eligible for filing ITR Form-1 (Sahaj)] can file ITR-2, while those having income from business or profession can file ITR Form-3.

ITR-4 (SUGAM) is for resident individuals, HUFs, and Firms (other than LLP) having total income up to Rs. 50 lakh and having income from business and profession computed under section 44AD, 44ADA, or 44AE. Persons other than individuals, HUF, and companies i.e. partnership firms, LLP, etc. can file ITR Form- 5. Companies other than those claiming exemption under section 11 can file ITR Form-6.

Documents Required For ITR Filing:

As per the ICICI Bank blog, here are the 7 key documents needed:

1. PAN and Aadhaar:

PAN is the first and foremost document that must be kept handy while filing tax returns. As per Section 139AA of the Indian Income Tax Act, an individual must provide his/her Aadhaar for successful filing of their income tax returns. You must link your Aadhaar and PAN as mandatory by the regulatory.

2. Form-16:

If your income earned is in the form of a salary provided by an employer, Form-16 is one of the key documents required for a tax return. Form-16 is a mandatory certificate issued by your employer that provides information about your salary earned during a given financial year, and the Tax Deducted at Source (TDS) on it, as applicable. Form-16 is divided into two parts - Part A and Part B.

The PART A reflects the information on TDS by the employer during the year, along with your PAN and employer's TAN

While PART B comprises details of your gross salary and its components like exempt allowances, perquisites, profit instead of compensation, etc.

3. Salary Slips:

Salary slips are another important document required for filing, as they hold other taxable details such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), medical allowance, personal allowance, and so on.

4. TDS certificates:

For this, you will need three TDS certificates which will reflect the details of tax deducted at source on your savings, investments, and loans.

Firstly is Form-16A which is a TDS certificate issued by the bank for tax deducted on non-salary income received in the form of interest amount earned on deposits such as Fixed Deposits, Recurring Deposits, etc.

Second is Form-16B which is provided by the buyer showing the tax deducted when you sell a property

Third would be Form-16C which is issued by a tenant to the landowner indicating the details of TDS deducted from the rent you receive. It is applicable in cases where the rent received by the landlord exceeds Rs 50,000 per month

5. Form 26AS:

This form is a consolidated statement of annual taxes paid by you and comprises all tax details that flow through your PAN that may include: TDS deducted by an employer for salaried persons; and TDS deducted by banks on interest income exceeding Rs 40,000. For senior citizens, the exempt limit is Rs 50,000; TDS deducted by any other organization from whom you might have received payment; and Self-assessment taxes and Advance taxes paid, if any.

As per the ICICI Bank blog, Form 26AS is a crucial document that accounts for all your taxes paid in a given year. Any mismatch in Form 26AS could deprive you of a tax credit for the said tax deduction. The form is downloadable from the TRACES website.

6. Investment proofs claiming tax exemption:

Various sections of Income Tax allow tax deductions on your investments and savings. However, you would be required to show proof of your savings and investments such as Premium paid towards Life Insurance Policies; Amount invested in Equity Linked Savings Schemes (ELSS); Employee Provident Funds (EPF); Public Provident Funds (PPF); Fixed Deposits; and National Pension System (NPS) among others.

One of the most popular tax exemptions under the IT ACT is Rs 1.5 lakh offered by the government in Sections 80C, 80CCC, and 80CCD (1) of the Indian Income Tax Act.

7. Home Loan Statement issued by the lender:

If you have a home loan, and paying EMIs every month, then a home loan statement is an essential document to file your tax returns.

The loan statement will have details such as principal and interest components of the loan amount. Under Section 24 of the Indian Income Tax Act, the loan borrower is entitled to claim a tax exemption of up to Rs 2 lakh on interest paid towards the loan during a given year. The interest paid and rent received if any must be furnished at the time of filing returns with ITR-1.

ITR filing is in place to reduce the burden on taxpayers. Paying income tax on your salary, income from other sources, goods, and services is mandatory for every individual in India. However, the government has introduced various measures to help taxpayers in claiming some of the payments they have made as taxes. And that is what ITR filing is!