Keeping all the necessary documents handy makes the ITR filing process much easy.The deadline for filing ITR for AY (Assessment Year) 2020-21, which is FY (Financial Year) 2019-20, is November 30. Amid the COVID-19 pandemic, this is the fourth time the CBDT (Central Board of Direct Taxes) revised the last date. The previous dates were September 30, July 31 and July 30 before extending the due date to November 30. This gives you more time to gather all the necessary documents like salary/income details, bank statements, previous tax statements, etc

In this article, you will know about what documents you need to collect before you start filing ITR for FY 2019-20.

General Documents

The following documents are the usual documents required to get one started with the ITR filing process, regardless of your occupation and sources of income. 

• PAN and Aadhaar Number – It mandatory to link PAN with Aadhaar to file ITR for FY 2019-20.
• Bank Account Details – Details and IFSC code of all the bank accounts one holds.
• TDS certificates – Form 16, Form 16A, Form 26AS, etc.
• Self-assessment or Advance Tax Payment Challan
• Investment Proofs – Investments and deductions that can be claimed under Section 80C, 80D, 80E, etc.

Depending on the nature of income for the FY 2019-20, one must also collect specific documents related to his/her income sources apart from the ones mentioned above

Income Earned From Salary

If you are a salaried employee, collect these documents to file ITR-1 (Sahaj) Form.

• Form 16 – Form 16 is TDS certificate which contains information regarding the employee’s salary and the TDS deducted on it. Apart from these, it also consists of details about your PAN (Permanent Account Number), gross salary breakup and your employer’s PAN and TAN. The employer must provide Form 16 even if no TDS is deducted from the salary. If one works for multiple employers, then he/she has to collect Form 16 from all of them.
• Pension Certificate – Pension received is also considered as a source of income and, one has to pay taxes on it. 
• Arrears in Salary – Form 10E needs to be filled if one has received arrears of salary for a particular year
• Full & Final Settlement (F&F) – In case someone has changed his/her job then is required to compute one’s salary.
• Rent Agreements / Rent Receipts – Rent receipts or agreement needs to be kept handy in case someone wants to claim HRA.
• Travel Bills – Refund on travel bills can be claimed if one can show it’s payment. Thus one should keep documents regarding this handy.
• Withdrawal of PF – All records regarding the withdrawal of PF are necessary for filing ITR since it is taxable in the hands of the employee.
• Gratuity/ Leave Encashment – Gratuity/ Leave Encashment is taxable and adds to the total income earned during a financial year.
• Joining Bonus/ Relocation Bonus – One also has to pay income tax on bonuses earned on joining or relocation since it adds to one’s yearly income. Taxability in this regard is borne by the employee and important in calculating total Tax Return.
• Foreign salary slips and Tax Returns – These are required if there is any foreign income accrued during any financial year. Therefore receipts from any foreign income along with the taxes deducted should be kept handy in case we qualify as an ordinary resident of India.

Income Earned From Other Sources

Income earned from other sources like interest on a savings account, fixed deposits, etc are also taxable and, one has to mention the same while filing for ITR. Here are the necessary documents required,

• Bank Passbook/Post Office Savings Passbook/Statements and Interest Certificates – Income earned on savings account interests and fixed deposits interests during a financial year needs to be reported while filing ITR. One has to mention the savings bank account number, bank IFSC code, name of the bank, FD details, etc.
• Dividends and Warrants – Dividends exceeding INR 10 Lakhs, earned during a financial year attracts a tax of 10% on the amount and, one has to keep the records of dividend warrants.
• Form 26AS – Form 26AS is a review of taxes deducted by the deductor on your behalf, taxes paid by you and the refund received during a financial year. 
• Accrued Interest – Interest from various government schemes must be kept for reference and tax filing.
• Lottery Income – Any income from lottery prizes is taxable at a flat rate of 30%.
• Agricultural Income – Income received from agricultural sources adds to one’s yearly income. Hence all the bank statements and receipts reflecting this should be kept handy.
• Clubbed Income – Income of one’s dependents which will be declared as one’s income.

Income Earned From House Property

Income tax deduction can be claimed by mentioning income earned through house property, making it one of the key ways to do so. Here are the documents one must keep handy,

• Rent Agreement – Rent from house property has to be declared in Form 16 while filing for ITR.
• Interest Certificate From Bank – In the case of home loans, bank details highlighting the principal as well as the interest payment need to be taken to claim any deduction
• Property Address – Deduction can be claimed by showing property address.
• Co-Owner Details – The amount of deduction can be increased by furnishing details of co-owner if any.
• Receipts Of Municipality Taxes Paid – The receipts of municipal taxes paid need to be kept handy in case of any scrutiny.
• Form 16A On Rent – All tax deductions apart from income are mentioned in this form, including deductions on rent received.
• Details of Pre-Construction Interest – For computing the correct tax to be paid, details regarding interest paid on pre-construction should be kept handy.
• Details Proving Ownership – Documents reporting one’s ownership details should be kept handy as well because it will only decide whether one is eligible to claim deduction on home loan interest or not. 
• Home Loan Processing Charges & Foreclosure charges – The charges highlighted here are considered to be finance costs and can be claimed as deduction under section 24(B) of the Income Tax Act, 1961.

Interested Earned From Capital Gains

All capital gains, both short and long term, earned during a financial year needs to be mentioned for computing accurate income tax and claim deductions. The following are the documents one has to keep handy,

• Purchase and Sale Of Deed – Property details along with the stamp valuation details have to be kept for ITR purposes.
• Transfer Expenses Incurred – Expenses incurred on transfer of any capital asset are tax deductible. 
• Purchase Deed In Case Of Reinvestment – Tax deductions can be claimed by showing documents related to investment in house property or bonds hence should be kept handy as well.

Documents for Tax Saving Investments

• Section 80C Investment Documents – Investments made under PPF, NSC, ULIPS, ELSS, LIC qualify for deductions under Section 80C.
• Receipts Of Donations Made – Tax deductions can be claimed under this, hence all necessary documents must be kept handy.
• Education Loan Interest Paid Receipts – Tax deductions for interest paid on education loan can be claimed under Section 80E up until a period of 8 years.
• Receipts For Medi-Claim Insurance – Tax deductions for medical insurance paid for both self and family members can be claimed under Section 80D.
• All Other Investment Receipts – The receipts of all other investments made during the year should be kept handy to claim deduction wherever possible.

Click here to know about the different Kinds Of ITR Forms and which one should you fill.
Click here to know about Income Tax And Tax Rates In India.
Click here to know about the ITR Filing process.