Last-minute checklist before filing your IT Returns for 2021

In a welcome move, the Indian government has extended the last date for filing income tax returns to 31 December for the assessment year 2021-22. Even with this extended deadline, you should start putting the finishing touches on your income tax return (ITR), avoiding any last-minute hassles. To that end, we have compiled a handy checklist to help you ensure that no vital document is missed out. Here are the 7 boxes you need to tick before filing your IT Returns for 2021

Choosing the Correct ITR Form

Taxpayers have to select the correct ITR form applicable to them, depending on their legal status, amount of income, sources of income, etc. There are seven ITR forms, numbered from 1 through 7, each with clearly defined applicability. To successfully file your return, you need to choose your form correctly.

Documents for Salaried Employees

To file their ITR, salaried employees need three documents: PAN, Form 16, and monthly salary slips. The PAN and monthly salary slip are usually available to employees on hand. Form 16 is furnished by their employer and provides validation that TDS has been collected and paid to the government. It contains a detailed summary of the salary paid to the employee.

Documents for Interest Income

If you have earned income in the form of interest, be it through a savings account or a fixed deposit, you need to furnish your bank statement (in the case of interest on a savings account), interest income account (in the case of a fixed deposit), and TDS certificate (issued by the source of the income interest, which in many cases will be the bank). Also, keep in mind that interest earned on a savings account can qualify for deduction up to Rs 10,000 under section 80TTA of the IT Act.

Documents for Income from Property

Under the IT Act, income from all properties – residential, commercial, land, or otherwise – is bunched under the same heading. For this income, you need to have rental receipts and your housing loan account statement (if the property still has a loan attached to it). Interest on a housing loan is income-deductible.

TDS Documents

If TDS has been deducted from payments made to you, you need to get your hands on Form 26AS provided by the IT Department. Form 26AS details tax paid on the taxpayer’s behalf by deductors, any tax paid by the taxpayer themselves, and any tax refund they receive in the relevant financial year.

Section 80 Investments

Certain investments are income-deductible under Section 80 of the IT Act. These include provident fund investments, equity-linked saving scheme (ELSS) mutual fund investments, stamp duty and registration charges, school tuition fees, life insurance premiums, specific charitable donations, etc. Deductions under Section 80 are capped at various amounts. You need to keep documentary evidence of all of these in the form of receipts or statements.

Documents for Capital Gains

If your income (or a part of it) is in the form of capital gains from buying and selling stocks or shares in mutual funds, you need to keep a statement of your trades on hand.

Indian income tax returns are ‘annexure-less’, in the sense that you don’t need to supply documentary evidence at the time of filing. However, the above-listed documents will help you fill up and file your return, and they need to be kept at hand if your assessing officer serves a notice asking for any clarification.

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