ITR Filing 2023: Five Key Documents Salaried Employees Need

It's tax filing season—a crucial time for the taxpayer, when the taxes paid during the year are reconciled with the actual tax to be paid. At the end of this process, the taxpayer will have to either shell out more tax or make a claim for a refund.

It's often a stressful activity, especially for those that leave things till the deadline. For the salaried taxpayer, it is important to be ready with the required details before starting the tax filing process so that it is easy to complete.

This preparatory work would also go a long way in ensuring that the correct details are given in the tax return.

Here are a few of the boxes to tick:

Form 16

The first thing that every salaried individual has to gather is their Form 16 from their employers or ex-employers if they have changed jobs. This is the basis for the entire details that they will enter into their tax return so it becomes one of the most important documents.

The Form 16 will give all the details of the income that the individual has earned from their employer along with the various deductions that they can claim for which they would have supplied proof to their employer. This form also gives details of all the Tax Deduction at Source that has been done for their salary and other income that has been disclosed to the employer. It acts as proof of the amount that has been paid as tax.

The employee has to check the details that have been mentioned on the Form 16 and whether this actually tallies with the amount earned.

Housing Loan Certificate

Currently, most taxpayers have stuck to the old tax regime with very few having moved to the new tax regime. For the financial year for which the filing is being done—that is the year ending March 31—it is likely that they will file their returns under the old tax regime, as the new rates and slabs (under the new tax regime) are effective only for the current financial year.

Those who have a housing loan and are going to claim the benefit under this should ensure that they get the housing loan interest and capital repayment certificate from their bank or financial institution. This is the proof of the amount that you can claim as a deduction and will give an idea about the exact figure that has to be used in the tax workings too.

Interest Certificate And Form 16A

A lot of people have deposits and other investments with their banks where some income has been earned. This has to be reflected in the Income Tax return and the best way to get the details is to get an interest certificate from the bank.

This will make the job easier because it will have the break-up of the savings bank interest as well as the other interest on deposits that has been earned. There is a deduction up to Rs 10,000 per year for interest earned on savings bank account and this should be claimed. The Form 16A, which will reflect the TDS on these deposits, will ensure that the correct amount is also reflected in the tax credits that are claimed.

Other Income Details

There can be other income that is earned by the individual during the year. This can include earnings like dividends from investments that have been made in either a mutual fund or in equity shares.

Intimation from the company or mutual fund would be required to get the gross amount and TDS on this income. It can also include some small bit of income earned through part-time work. Even capital gains earned on the sale of investments and assets should be present. The details of such gains need to be obtained from an individual's broker or the mutual fund.

Annual Information Statement

It is important to tally all the details collected with the AIS that is available from the Income Tax department. There should not be a mismatch between the details shown in the tax return with the AIS, or else there will be a notice sent to the taxpayer asking to explain this. It is better to check all the entries in the AIS and then ensure that they match with what is collected. This will ensure that the return is also processed quickly. In case of discrepancy, this needs to be brought to the attention of the tax department and corrected.

Arnav Pandya is founder of Moneyeduschool.