If you are a salaried taxpayer, one of the most crucial documents need to file your Income Tax Return (ITR) is Form 16. As per report, this certificate is issue by your employer and provides a details breakdown of your salary with the taxes deducted and deposited on it as Tax Deducted at Source (TDS).
It is mandatory for employers to issue Form 16 if they have deducted TDS from your salary during the financial year.
The report said that apart from Form 16, taxpayers must also collect other TDS certificates that apply to them, such as Form 16A.
If the interest earn on fixed deposits in FY2022-23 exceeds Rs 40,000 (Rs 50,000 for senior citizens), the bank will deduct tax on it.
Same, mutual fund companies issue Form 16A for the tax deducted on dividends paid during the financial year if it exceeds Rs 5,000.
While filing the ITR, taxpayers must provide a details breakdown of interest income receive from various sources like savings accounts and fixed deposits.
To ensure accurate reporting of income details and to claim tax deductions and exemptions for investments, it is essential to collect interest certificates from banks, post offices, and other financial institutions.
As per the report, an Annual Information Statement (AIS) contains details of all the financial transactions conduct by an individual during a specific financial year.
Taxpayers must download and verify the financial transactions from AIS to ensure that all incomes declare in the statement are correctly report in the ITR form, as applicable to them.
Form 26AS, available on the new income tax portal, is a tax passbook that provides details of taxes deduct and deposit against your PAN with the government.
It is important to cross-check the information in Form 26AS with the details in TDS and interest certificates to ensure accuracy.
To claim deductions while filing the ITR, taxpayers must collect proofs of tax-saving investments and expenditures.
You have to note that an individual can claim tax-saving investments and expenses if they opt for the old tax regime at the time of filing ITR.
Reporting capital gains from the sale of property, shares, and mutual funds is essential when filing the ITR.
Individuals with capital gains cannot file using ITR-1, they need to use ITR-2/ITR-3, as applicable.
To compute capital gains on property sale, one would require the purchase deed and sale deed of the property.
According to section 139AA of the Income-tax Act, 1961, individuals are require to quote their Aadhaar number while filing ITR.
If you have applied for an Aadhaar number but haven’t receive it yet, you need to quote your enrolment ID in the ITR form.
If you have held unlist shares during FY 2022-23, you must disclose that information in your ITR.
In such cases, you cannot file your tax return using ITR-1, you must use the ITR-2 form.
Mentioning details of bank accounts held during FY 2022-23 is mandatory.
Even if you have close an account during the financial year, you must report it.
