Online income tax filing has become commonplace due to its efficiency and convenience. However, you must collect all required documents to guarantee a seamless and error-free transaction. These crucial documents will help you file your taxes accurately and on time, regardless of whether you are a business owner, freelancer, or salaried worker.
The essential documents needed to file income taxes online are listed below:-
1. Form 16
2. Form 26AS
3. Statements from banks
4. Investment Proofs
5. House Property Details
6. Business and Profession-Related Documents
7. Form 15G/15H
8. The PAN card
Form 16:
One of the most important forms for salaried workers is Form 16. Your company issues it, including information on your pay, deductions, and the Tax Deducted at Source (TDS) that was paid to the government. This document guarantees that the right amount of Tax has been paid on your behalf and assists in determining taxable income. It can be difficult to ascertain the precise tax liability without Form 16.
Form 26AS:
Form 26AS functions as a combined record of the taxes withheld from your income and serves as a tax credit statement. It contains information on TDS from property transfers, interest income, salaries, and other sources. You can double-check if the Tax that banks, employers, or other organizations have withheld has been properly deposited in your name by confirming Form 26AS. Accurate filing is ensured using the income tax e-filing system to access this form.
Statements from banks:
Your bank statements contain important financial data, including interest received on savings accounts, fixed deposits, and recurring deposits. Because interest falls under the “Income from Other Sources” category, it needs to be declared when you file your taxes. Monitoring every transaction aids in determining taxable income and possible deductions.
Investment Proofs:
Investments can potentially lower taxable income, and claiming deductions requires the right paperwork. The following are a few typical assets that are eligible for tax benefits under Section 80C and other provisions:
- Receipts for life insurance premiums
- Proofs of investment for Equity-Linked Savings Plans (ELSS) and Public Provident Fund (PPF) passbooks
- Contributions to the National Pension System (NPS)
- Certificates of fixed deposit with a minimum five-year term
By providing these proofs, you can maximize tax savings and reduce your taxable income.
House Property Details:
If you own a house or have a home loan, certain documents related to house property are required while filing your income tax return.
These include:-
- Home loan interest certificate (to claim deductions under Section 24)
- Rental income receipts, if the property is rented out
- Municipal tax receipts for claiming deductions on property tax
These details help in accurately reporting rental income and claiming deductions on home loan interest and principal repayment.
Business and Profession-Related Documents:
Self-employed people and business owners must keep thorough financial records to ensure proper tax reporting.
Essential documents include:-
- Profit and loss statement
- Balance sheet
- Expense receipts
- GST returns (if applicable)
- Audit reports (for businesses exceeding the prescribed turnover limit)
Proper documentation ensures that business-related expenses are accounted for and tax benefits are availed effectively.
Form 15G/15H:
You must file Form 15G (for those under 60) or Form 15H (for senior citizens) if your total income is below the taxable limit and you wish to avoid TDS deductions on interest income. By submitting these documents to banks and other financial institutions, you can avoid needless TDS deductions by certifying that your income is below the taxable threshold.
The PAN card:
You must have your Permanent Account Number (PAN) to file income tax returns. It keeps track of your financial transactions, tax payments, and deductions. Ensure your PAN information is accurately included in your return to prevent inconsistencies. Processing delays or denying your return may result from mismatched PAN information.
Conclusion
Before beginning your online income tax filing process, gather and arrange these documents to save time and avoid mistakes. If you need help for Online Income Tax Filing, reach out to Eazy Startupsfor seamless processing.