According to India’s Income Tax Department, as of December 21, 2020, there was a 0.12 crore increase in the number of individuals filing their returns y-o-y.
The introduction of online methods for income tax filing has played a significant role in this growth. E-filing income taxes have brought much-needed clarity and convenience to this process. An individual can now easily file his/her ITR anytime, anywhere. However, before moving ahead with this process, one needs to keep some necessary documents handy to complete it without hassle.
Documents required for filing income tax
List of documents required for a successful e-filing of income tax returns includes the following –
- Form 16
- Salary slip
- Purchase or sales deed of immovable property
- TDS certificate against interest income
- Warrant for income from various dividends
- Receipts of tax savings investments
- Balance sheet, profit and loss statement, etc. for self-employed individuals
- Rent receipts
- Tax deductible medical expenses and leave allowances
- PAN card
- Aadhar card
- Form 26AS
- Form 16A, 16B, 16C
- Deductions under 80D and 80U
- Home loan repayment details and exemptions under Section 24
Keeping these documents handy is essential for e filing It saves time during the application process and helps individuals file their income tax return without any glitches.
How to initiate an income tax return filing process?
With the emergence of the online process, filing an income tax return is not a hassle anymore. One can visit the official website of the Income Tax Department, and complete income tax e-filing India login to begin this process.
However, before that, one needs to finish the registration, which will require submission of personal details, and PAN card details. Here, this PAN card number will act as the user ID, and individuals will have to create a password.
Following this registration, one can either go with the online application process or opt for the traditional offline method.
- Online method
The e-filing method here begins with the login to the income tax portal. After that, one needs to go to the income tax return section and provide details like assessment year, income tax return form number, submission method, and filling type.
Moreover, after completing this process and beginning the fill-up of the ITR form, one should read the instructions carefully. It will help them understand the associated rules and regulations and complete the remaining process without any mistakes.
After that, one needs to identify the verification method that he/she decides to go ahead with. They have the choice to either select e-verification methods where they can do it via OTP generation or EVC. Otherwise, they can always send it to the Income Tax Department’s Bengaluru office.
- Offline method
In case of the offline method, one need access to either excel, or Java utility to generate the XML required for this process. At first, taxpayers need to visit the e-filing portal of the IT department. They can download the needed utility and extract those files.
After that, they need to fill the necessary details of this ITR form, validate them and calculate their annual tax liability. Following this, taxpayers need to generate and save this XML, login to the portal of the IT department, and select assessment year, submission modes, type of filling, and ITR form number.
Furthermore, once they have verified the IT return method, individuals need to upload this XML file. They can then conclude the process by submitting it.
Income tax return document works as an income proof and is necessary when one applies for credits like a home loan. It helps lenders gauge the repayment capacity of an applicant.
Along with this, one needs to keep a list of all the other documents handy as well, to expedite this process.
Contrarily, one can bypass this lengthy process by selecting a lender that extends pre-approved offers. An offer like this streamlines the application process and is also available on other financial products like loan against property, along with home loans. Individuals can check their pre-approved offer by submitting essential contact details.
Keeping the necessary documents in line for e-filing helps to streamline the process, and saves time. Moreover, the online process has further increased the convenience of a taxpayer and augmented their number. Additionally, the tax benefits of a joint home loan have also incentivised Indians to pay taxes on time.
