Essential Documents to Gather Before Consulting Your CA for ITR Filing

Tax season is upon us again in India! While some individuals may feel comfortable navigating the intricacies of filing income tax returns (ITR) themselves, many others seek the guidance of a chartered accountant (CA). 

 

But before you head into your CA’s office, being prepared with the proper documents can make the entire process smoother, faster, and more efficient.

 

This blog will provide a comprehensive list of essential documents to gather before consulting your CA for ITR filing. 

 

This readily available information will save you time and hassle and ensure your CA has everything they need to file an accurate and optimal tax return on your behalf.

General Documents Needed To File Income Tax Return

As an Indian taxpayer, filing your Income Tax Return (ITR) is an essential annual responsibility. Organising all necessary documents beforehand is crucial to ensure a smooth filing process. 

 

Here’s a breakdown of the vital documents you’ll need under the umbrella of “General Documents”:

PAN Card:

Your Permanent Account Number (PAN) is your unique identifier in the Indian tax system. You must include your PAN details when filing your ITR.

Aadhaar Card:

Linking your Aadhaar card to your PAN card is now mandatory for most taxpayers. Having your Aadhaar details handy will streamline the ITR filing process.

Bank Account Details:

While you don’t necessarily need to submit your entire bank passbook, having your bank account details readily available is essential. This includes account numbers, IFSC codes, and any details regarding tax refunds or deposits.

TDS Certificates (Tax Deducted at Source):

These certificates, like Form 16 (issued by your employer) and Form 16A (for other income sources), reflect the tax deducted at source from your income. The information in these certificates needs to be accurately reflected in your ITR.

Investment Proofs:

If you’ve made investments that qualify for tax deductions under sections like 80C, 80D, or 80TTA, you’ll need proof for those investments. These proofs can be documents like receipts for Public Provident Fund (PPF) contributions, life insurance premiums, or mutual fund investment statements.

Documents Needed To File ITR For A Salaried Person

When preparing to file an Income Tax Return (ITR) as a salaried individual in India, it’s essential to gather several key documents to ensure accurate reporting and compliance with tax regulations. These documents typically include:

Form 16 (Salary Certificate): 

Your employer provides this and details your salary income, deductions under Chapter VI-A (like sections 80C, 80D, etc.), and taxes deducted by your employer.

Pension Certificate:

If you receive pension income, you’ll need this document showing the amount received and any tax deducted at source (TDS).

Gratuity/Leave Encashment:

Documents reflecting any gratuity received or leave encashed during the year are taxable under certain conditions.

Withdrawal of PF (Provident Fund): 

Statements or certificates showing withdrawals from your PF account, mainly if they occurred before the stipulated years of service are completed.

Arrears in Salary: 

Any arrears received during the year and the corresponding TDS details must be reported separately.

Travel Bills: 

Reimbursement bills related to official travel expenses may be eligible for tax exemption under certain conditions.

Joining Bonus/Relocation Bonus: 

Documents related to any joining or relocation bonuses received, including details of taxes deducted.

Full & Final Settlement (F&F): 

If you changed jobs during the year, documents related to your previous employer’s full and final settlement.

Rent Agreements/Rent Receipts: 

You’ll need rent receipts and rental agreements as proof if you claim a House Rent Allowance (HRA) exemption.

Foreign Salary Slips and Tax Returns:

 If you worked abroad during the year, provide documents showing your foreign salary income and details of any taxes paid abroad.

Documents Needed To File ITR If You Have Income From Other Sources

While salary income is the most common, many Indians earn income from various other sources. Filing your ITR can get trickier. Here’s a breakdown of the documents you’ll likely need to keep handy depending on the type of “other income” you received:

 

Bank Passbook/Post Office Savings Passbook/Statements and Interest Certificates:

These documents provide details of interest earned on savings accounts, fixed deposits, recurring deposits, or any other deposits held with banks or post offices.

Dividends/Warrants: 

Statements or certificates issued by companies or mutual funds showing dividends received or warrants issued during the financial year.

Form 26AS: 

This consolidated tax statement reflects details of tax deducted at source (TDS), tax collected at source (TCS), advance tax paid, and self-assessment tax payments made during the year. It is essential for cross-verifying the tax credits available against your income.

Accrued Interest: 

You must provide details of accumulated interest on investments such as bonds, debentures, or other financial instruments.

Lottery Income: 

Showcase documents showing income received from lotteries, crossword puzzles, card games, or any other games of similar nature.

Agricultural Income: 

Documents provide the year’s farming income details if applicable.

Clubbed Income: 

Documents related to income clubbed with your income, such as income of minor children or spouse, must be included in your total income.

Crypto Income: 

Details of income earned from cryptocurrency transactions, including staking, mining, or other crypto activities.

Documents Needed To File ITR If There Are Capital Gains

When you file your ITR and have earned capital gains, there are specific documents you’ll need to keep handy. These documents help you accurately report the gains and calculate any taxes owed. Here’s a list of the essential documents:

Purchase and Sale Deed:

This is the primary document for any asset you sold and generated capital gains. It proves the date of purchase, purchase price, and sale price. You’ll need a copy of both the purchase and sale deeds.

Transfer Expenses Incurred:

Certain expenses incurred during the transfer process can be deducted when calculating capital gains. Documents like receipts for registration fees, stamp duty, and brokerage charges are useful here.

Purchase Deed in Case of Reinvestment:

You can claim exemption from capital gains tax if you reinvested the proceeds from your sale into a new capital asset within specified timelines (depending on the asset class). The purchase deed for the new asset acts as proof of reinvestment.

Crypto Capital Gains:

Cryptocurrency is a relatively new asset class, and specific regulations are still evolving. However, on a designated crypto exchange platform, it’s essential to maintain records of your crypto transactions, including purchase price, date of purchase, sale price, and date of sale. These records serve as evidence for reporting crypto capital gains in your ITR.

Conclusion

Consulting a Chartered Accountant for your ITR filing can significantly ease the process and ensure accuracy. By gathering the essential documents outlined in this blog beforehand, you’ll be well-equipped for a productive and efficient consultation with your CA. 

 

Complete and organised records are critical to a smooth ITR filing experience.

Don’t hesitate to discuss any questions or uncertainties with your CA. Their expertise can help you maximise deductions, claim exemptions, and, ultimately, minimise your tax liability.