TomorrowMakers

Are you a working woman? Here’s a simple checklist for you to keep these documents handy for you to file your income tax returns successfully.

What documents are needed for tax filing

Filing taxes can seem intimidating. One of the most common questions troubling a salaried woman is to find out the exact documents needed to file income tax returns. To make the process of filing easier, it is always a good idea to keep all the necessary documents handy. Without these documents, filing your tax returns can be difficult.

Documents needed

The most important step to start filing income tax returns is to get all your documents together. Documents you will need will vary depending on the types of income you have.

Here are the documents you need to keep handy if you wish to file your income tax return easily:

  • PAN card
  • Passport
  • Aadhaar Card (Section 139AA)
  • Form 16
  • Form 16

This is the most important document for filing tax returns. If no tax was deducted at source, you may not get Form 16. In such cases, you can either request for a salary certificate. Else, you may just keep your appointment letter and salary slips handy with you.

If you have switched jobs in the last financial year, you need two Form 16 this year – one from the current employer and one from the previous employer.

Salary slips

Salaried taxpayers are required to provide information on allowances such as house rent allowance and transport allowance that are taxable. If you have received HRA in the last financial year and paid rent, the taxable portion will be calculated based on certain conditions.

Each allowance received by you has a different tax treatment. Some are fully taxable, while some are partially taxed. You can find all this information in your salary slips. Any special allowance received in the last financial year will be fully taxable in your hands, while transport allowance is tax exempt for a minimum of up to Rs 19,200 a year.

Related: 7 Ways to put your income tax refund to good use

Income from other sources

If you earned any income from other sources, that too needs to be shown while filing your returns.

For interest earned on your savings bank account or post office savings account, you need to submit an interest certificate received from your bank. It is important to show the savings interest in your tax return to claim the related deduction under Section 80TTA of the Income Tax Act.

In the case of your fixed deposit or recurring deposit, you can submit the interest certificate received. Else, you can submit Form 16(A), which is the TDS certificate. Also share details of other income earned, such as dividend or commission.

Tax-saving investment proofs

You will need to share details of all your tax-saving investments and expenses in order to claim deduction of up to Rs 1.5 lakh under Section 80C. You can submit details of any of the below, as applicable:

  • Life insurance premium payment receipts
  • Premium receipts on medical insurance (Section 80D)
  • Contribution to Public Provident Fund
  • Contribution to National Pension Scheme
  • Interest paid on home loan and principal repayment certificate
  • Interest certificate on education loan (Section 80E)
  • Donation receipts for the year (Section 80G)
  • Stamp duty and registration charges paid for any house purchase
  • Other tax-saving investments and expenses

Related: 8 Ways women can save on income tax in 2021

Other deductions

In case you have missed claiming your HRA exemption from your employer, you may submit your rent receipts and salary slips. Also, for claiming LTA exemption, you have to submit details of your travel cost, including your travel tickets and boarding passes.

Capital gains

If you have earned some capital gains from the sale of property or mutual funds during the year, you will need to report these gains in your ITR.

All you need is the purchase deed and sale deed of the property in order to compute long-term or short-term capital gains on sale of property. For capital gains on sale of mutual funds or shares, you will need to keep ready statements from the mutual fund companies or brokers.

Form 26AS

Lastly, you can download Form 26AS from here and fill it up with appropriate details. Form 26AS is the annual tax credit statement reflecting all the taxes deposited under your name. This form contains all the information related to various income earned by you during the year and also the taxes deducted on such income at source.

Matching TDS certificates with Form 16

The details in your tax returns need to be reconciled with details reflected in Form 26AS. This is important to avoid any delayed and short refund, or the chance of receiving tax notices and penalties from the IT department.

Related: Here’s how women can save on income tax after a salary hike?

For self-employed women

If you are a self-employed woman, you are eligible to receive several tax benefits. You can decrease the amount of tax you owe to the government by ensuring you claim all allowable business tax deductions.

If you are a single member LLC, review Schedule C. You may deduct a variety of your business expenses on Schedule C, if they are considered routine and necessary to doing business.

If you have a home-based business, review Form 8829. In addition to business expenses, you are allowed to deduct a portion of personal expenses used exclusively for business. Some of these include mortgage interest, property taxes, rent, utilities, and others.

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice. You should separately obtain independent advice when making decisions in these areas.