Financial year-end paperwork for individual tax
filing..!
The financial year has just ended, and it is
important for individual taxpayers to start putting together the documents
necessary for initiating the process of filing their tax returns.
Documents..!
Typically, three sets of documents need to be
collected by the taxpayer:
1. Proof of income earned
2. Proof of tax paid
3. Proof of expenses incurred that are subject to
deduction
4. Proof of investments that are allowed as
deduction
Proof of income..!
Salary slips, bank statements, shares and other
investments transaction statements, property sale papers & all documents
that reflect income during the financial year need to be collected to calculate
the total income received by the taxpayer.
Proof of Income tax paid..!
Form 26AS lists all the tax payments made by or
on behalf of the taxpayer.
Salary earners need to collect Form 16 from their
employer, and others need to collect form 16A from those who have deducted tax
on their behalf.
Advance tax challans for tax paid during the year
also need to be submitted.
Proof of deductible expenses..!
Bank statements, receipts for deductible expenses
incurred for business or / profession, as well as receipts for medical and life
insurance premiums need to be filed.
Proof of investments..!
This includes investment holding statements and
proofs of investment in securities that are allowed as deduction under Section
80C, like PPF account statements, NPS statements, salary slips, premium receipt
for investment in life insurance, etc.
Points to note..!
The documents can be submitted in the form of
hard copies or / soft copies.
Receipts issued for donations made during the
year to approved institutions also need to be included to take advantage of the
deduction provisions.
Courtesy : Centre for Investment Education and
Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and
Labdhi Mehta.
No comments:
Post a Comment