Online Income Tax Return Filing - Salary
Every person who earns money exceeding a certain amount is subjected to pay government tax, known as Income Tax. The income earned by a person can be through salary, interest from savings, income from mutual funds, sale of a property, profit from a business, and professional income. In simple words, the tax paid or deducted on these revenues is called Income Tax. The Union Budget pre decides the rate of Income Tax at the beginning of every year. In India, there are two types of taxes.
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Documents Required For Income Tax Return (ITR) Filing In India FY 2021-22 (AY 2020-21)
To file Income Tax Returns in India, there is a list of preparations you need to make so that you can make your ITR filing process hassle-free. Keeping this into consideration, the Government of India gives taxpayers sufficient time to compile their documents like the bank statements, salary/income details, previous year tax statements etc. The procedure of e-filing your income tax changes depending on several factors like income source like business profit, investment profit, salary income, etc. Here, we are providing you with a checklist of the most important documents for filing an Income Tax Return (ITR) that you must have ready before you start filing your Income Tax Return in Fy 2021-22 (AY 2020-21).
Top Benefits of e-Filing Income Tax Returns on Time in India
The following documents are important and should be compiled by the taxpayer to avoid last-minute hassle:
Home Loan statement from Bank
The statement becomes important so that you can claim a deduction for the principal amount repaid during the year u/s 80C for a maximum of Rs.1.5 lakhs. Deduction on interest can also be claimed up to Rs.2 lakhs in case your house property is self-occupied. In case of let out house property, a loss can be claimed up to 2,00,000 and the remaining loss can be carried forward to the succeeding 8 Assessment Years Interest deduction is allowed on a due basis i.e., whether paid or payable during the year. Section 80EE and 80EEA gives the additional benefit of interest paid, to the first time home buyers subject to certain conditions.
School fee receipt for tuition fees
Fee receipt shows up a break up of tuition fees paid and the amount charged for other activities. The tuition fee component is allowed as a deduction under section 80C of the Income Tax Act for a maximum of two children. You should have these details to claim deduction under these sections while filing ITR.
Contribution to PPF, Life Insurance Premium Receipts
The major tax saving instruments used in India include contributions made to PPF, investments in LIC, 5 Year tax saving FD etc. Amount invested in all such tax saving funds is eligible for deduction under section 80C, aggregating to a maximum deduction of Rs.1.5 lakhs. If you have made any such contribution, it is imperative that you furnish documents related to the same.
Investment in NPS
Amount invested in NPS deduction subject to a ceiling of Rs. 1.5 lakhs and Rs 50,000 is allowed under section 80CCD and 80CCD (1B), respectively. So if you have exhausted your 80C limits and desire to save more taxes by investing your money, you can choose NPS.
Donations made to the institutions that qualify for deduction @ 50% or 100% u/s 80G will be required. The donation shall be made via any mode other than cash if the amount donated exceeds Rs 2000 from FY 2017-18 onwards.
Details of Medical Insurance
Section 80D gives you a deduction from your gross total income for the amount paid as medical policy premiums. The policy can be taken for self, spouse, children and parents. If the member insured is a senior citizen- the amount eligible for deduction u/s 80D will be Rs. 50,000 for F.Y. 2020-21 and in all other cases it will be restricted to Rs 25,000 per year. For senior citizens, the deduction is also available for medical expenditure up to Rs 50,000. 80D is provided separately for parents and self, spouse and dependent children.
If you are paying interest for an education loan taken for higher studies of yourself, spouse or children; you can claim deduction under section 80E without any limit subject to the actual interest paid from the first year scheduled for repayment to a total of 8 years.
Receipts of any other investments
The taxpayers need to collect the receipts of other investments if any
The below-mentioned details are required to be quoted correctly in order to make full and true disclosure of your income from house property:
• Address of Property
• Co-owner details
• Rent agreement, if any
• Ownership details
• Interest certificate for loan
• Pre Construction Interest Details
• Municipal Tax Receipts
• Rental income details etc
If you are opting presumptive scheme as a businessman under sec 44AD or as a professional u/s 44ADA, then you require only the following information :
• Gross Turnover/ Receipts
• Gross Profit
• Some other details like Sundry Debtors, Sundry Creditors, Stock in Trade and cash balance at the end of the year.
It is also very important to reconcile your 26AS statement to check whether the TDS deducted in your business name is being reflected completely and correctly.
In case you are running a business and the total turnover or sales exceeds Rs. 2 crores during the financial year, you need to get your accounts audited under section 44AB. This limit is 5 crore in some specific cases applicable from the F.Y. 2020-21. Additionally, a professional like Chartered accountants, Doctors, Lawyers etc., with a total receipt exceeding Rs 50 lakhs are required to get accounts audited. In case of requirement of audit, all the books of accounts need to be maintained properly.
Contact us on 9178343858 / 9776030005 ro comply your Income Tax Return Filing