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ITR filing documents you need for FY 2020-21

To make the method of submitting revenue tax return (ITR) simpler, it is essential to maintain the mandatory paperwork useful. ITR-1 type, which is the shape utilized by most salaried taxpayers, comes prefilled with a lot of the knowledge.

Within the authorities’s newly launched e-filing portal, too, knowledge comes prefilled in ITR-1. Nonetheless, do take into account that as a result of quite a few technical points which have been plaguing the brand new tax submitting portal, it turns into all of the extra essential to cross-check the prefilled data within the ITR type.

Here’s a have a look at 9 paperwork it’s essential to accumulate and preserve useful earlier than you begin submitting your ITR for FY 2020-21.

1. Kind-16

Kind 16 is a TDS certificates issued to you by your employer offering particulars of the overall wage paid to you much less of tax exemptions you’re eligible for, and tax deducted on it. Do take into account that employer has to mandatorily situation Kind 16 if tax in your wage has been deducted through the monetary 12 months. If no TDS is deducted out of your wage, then you’ll be able to request your employer to offer you the Kind 16.

Kind-16 consists of two elements: Half-A and Half-B. Half-A consists of particulars similar to: the tax deducted by your employer through the 12 months; your Everlasting Account Quantity (PAN); PAN and TAN of your employer. Half-B of the shape consists of your gross wage break-up particulars similar to exempt allowances, perquisites and so on.

Each Half-A and Half-B will bear the TRACES emblem and a singular certificates ID.

Abhishek Soni, CEO,, an ITR filing web site says, “The brand new revenue tax portal provides pre-filled data in revenue tax return varieties. People submitting ITR-1 utilizing on-line methodology of ITR submitting can simply cross verify the info from Kind 16. It is because ITR-1 type issued by the tax division is in sync with the knowledge accessible within the Half-B of the Kind 16.”

Whereas receiving Kind-16, one should verify that the PAN talked about on it’s yours. If there’s any discrepancy, then it’s essential to deliver this to your employer’s discover. Your employer will rectify the errors in Kind-16 and situation you a revised type.

2. Curiosity revenue and TDS certificates/Kind 16A from banks and submit workplace

The newest ITR varieties asks people to offer break-up of the curiosity revenue acquired from totally different sources similar to financial savings account, mounted deposits, and so on. Thus, you will need to accumulate curiosity certificates from the banks and submit workplace to know the overall quantity acquired by you through the monetary 12 months on financial savings accounts and numerous mounted deposits. Additional, ensure that to replace and verify your financial institution passbook/s for FY 2020-21 to report another revenue similar to curiosity from RBI bonds (taxable), tax exempt PPF curiosity and so on. even when tax will not be deducted.

If tax is deducted on the curiosity earned from mounted deposits, then it’s essential to additionally accumulate Kind 16A/TDS certificates from the deductor e.g banks.

Sujit Bangar, Ex-IRS officer and founder,, an ITR submitting web site says, “Extra tax-exemption of as much as Rs 3,500 (single accounts) or Rs 7,000 (Joint accounts) could be claimed on curiosity earned from submit workplace financial savings account below part 10(15)(i) of the Act. These deductions/exemptions could be claimed solely if in case you have opted for outdated tax regime.”

3. TDS certificates from different incomes

You probably have offered property throughout FY 2020-21, then the customer will situation you Kind-16B exhibiting the TDS deducted on the quantity paid to you.

Bangar says, “If you’re a landlord incomes rental revenue, then it’s best to ask your tenant to offer you Kind-16C for offering the main points of TDS deducted on the lease acquired by you, if any.” As per the present legal guidelines, a person is required to deduct TDS if the month-to-month lease is greater than Rs 50,000. Additional, you’ll be able to verify Form 26AS for the TDS particulars.

Then there’s Kind 16D which is a TDS certificates issued to contractors or professionals if the fee made to them by a person/HUF throughout FY 2020-21 exceeds Rs 50 lakh. The tax is deducted on the time of creating fee of a fee, brokerage, contractual fee or occupation charge.

Soni says, “Equally, tax might be deducted on the money withdrawals made by a person from a checking account if the withdrawal quantity exceeds the required limits. You probably have acquired dividends from corporations and/or fairness mutual funds exceeding Rs 5,000, then tax might be deducted on that. Guarantee that you’ve acquired TDS certificates (Kind 16A) for a similar. Additionally, identical could be checked with Kind 26AS.”

Do take into account that you’re required to report the dividend revenue earned on quarterly foundation through the FY in your tax return.

4. Kind 26AS

Kind 26AS is your consolidated annual tax assertion. That is like your tax passbook which has data of all of the taxes which have been deposited towards your PAN. These embrace:

a) TDS deducted by employer;

b) TDS deducted by banks;

c) TDS deducted by another organisations from funds made to you;

d) Advance taxes deposited by you throughout FY2020-21;

e) Self-assessment taxes paid by you.

It’s best to be certain that all of the taxes deducted in FY 2020-21 are reflecting towards your PAN in Kind-26AS.

5. Tax-saving funding, expenditure proofs

If you’re planning to proceed with the outdated tax regime on the time of submitting ITR, then it’s essential to preserve useful all paperwork associated to eligible investments and expenditure (which can be utilized to say deductions) made throughout FY 2020-21.

You probably have declared and submitted all of the tax-saving proofs referring to claiming exemptions below part 80C, part 80D and HRA exemption and so on., then such particulars will replicate in your Kind 16, offered you will have opted for outdated tax regime for TDS on wage together with your employer. Nonetheless, if in case you have missed declaring any tax-saving proof, then it may be claimed on the time of submitting ITR.

Medical insurance premium paid for self, partner and/or kids in FY 2020-21 are eligible for deduction below part 80D so preserve the premium paid receipts to discuss with the quantity of premium paid.

You probably have taken a house mortgage from a financial institution or another monetary establishment, do accumulate the mortgage assertion for FY 2020-21. It can have the break-up particulars of how a lot principal and curiosity have been repaid through the FY and enable you declare deduction on the curiosity paid.

Curiosity paid on the house mortgage can decrease your tax legal responsibility below part 24. Bangar says, “If the property is self-occupied property, then loss within the type of curiosity deduction as much as Rs 2 lakh could be claimed and set off towards another revenue together with revenue from the wage within the first 12 months. Unclaimed losses could be carried ahead for 8 subsequent years however could be set off provided that there’s an revenue from home property (both identical or totally different). If there isn’t any revenue from home property within the subsequent 8 years, then unclaimed losses can’t be set off.”

6. Capital features

You probably have earned capital features from the sale of property and/ or mutual funds/ fairness shares, then you may be required to report these features in your ITR.

To compute capital features (long-term or short-term) on sale of home property, land or constructing one would require the acquisition deed and sale deed of the stated property.

“Keep in mind whereas reporting capital features from sale of property in ITR-2, additionally, you will be required to offer full particulars of the customer similar to identify, PAN, handle and so on.”, says Bangar.

In case of capital features accrued on the sale of mutual funds and/or shares, one would require statements from mutual fund homes and/or brokers.

Additional, in FY 2020-21, if in case you have offered bitcoins, then features arising from such transactions should even be reported in ITR.

7. Aadhaar quantity

In keeping with part 139AA of the Earnings-tax Act, a person is required to cite his/her Aadhaar quantity whereas submitting ITR.

Additional, if you do not have your Aadhaar quantity but however have utilized for a similar, then you definitely can be required to cite your enrolment ID in your ITR type.

8. Particulars of funding in unlisted shares

In case you had been holding unlisted shares throughout FY 2020-21, then you’ll have to disclose your holding in your ITR. On this case, do be aware that you simply can not file your tax return utilizing ITR-1 type even when your sources of revenue are wage and curiosity earned on checking account. You’ll have to use ITR-2.

You’ll have to present the next particulars in ITR-2 with reference to the unlisted shares:

a) Title of Firm

b) PAN of Firm

c) Opening stability as on April 1, 2020, and price of acquisition

d) Unlisted shares acquired through the 12 months with date of buy, face worth of shares, situation worth per share (in case of contemporary situation)/ buy worth per share

e) Unlisted shares offered through the 12 months and the quantity acquired

f) Closing stability as on March 31, 2021, and price of acquisition.

9. Checking account particulars

It’s necessary to offer particulars of the checking account(s) held by you throughout FY 2020-21. Even if in case you have closed your account through the FY, must report it in your ITR, says Bangar. You’re required to say your financial institution identify, account quantity, account sort and IFS code.

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