Verify data in pre-filled forms carefully before filing your tax return

Keep all relevant documents handy to to cross-check the data and weed out inaccuracies

The Income-Tax Department now provides pre-filled forms for filing income-tax returns, which simplifies the process. However, it is important to have the necessary documents on hand to verify the information in the form. Although there is no requirement to upload documents initially, they may be requested if an assessing officer investigates. Amay Jain, senior associate, Victoriam Legalis, Advocates & Solicitors, says, "Keep all relevant documents organised and readily accessible. This will make the tax filing process smoother and help you avoid missing out on any deductions or inaccuracies in your return."

Form 16, 16 A, and other certificates

Form 16 is a tax deducted at source (TDS) certificate issued by the employer. Form 16A is a certificate issued by the deductor for TDS  on income other than salary. Other TDS certificates include Form 16B for TDS on the sale of property, Form 16C for TDS on rent, etc.

Jain says, "Check if the TDS certificates reflect the correct amount of tax deducted and if they match the details mentioned in your bank statements and other relevant documents. Ensure that all the TDS certificates are included in your tax return to claim credit for the taxes deducted."

Employees should check that Form 16 is digitally signed and that Parts A and B are filled out correctly. Maneet Pal Singh, partner, I.P. Pasricha & Co, says, "The assessee should verify that the TDS certificate has been shared by the employer/another deductor after downloading it from the TRACES portal."

Interest income and other interest certificates

It is important to collect interest certificates from banks, and post offices, to avail of exemptions under Sections 80TTA and 80TTB. An amount exceeding Rs 10,000 or Rs 50,000, as the case may be, is taxable in the hands of the assessee. Ankit Rajgarhia, principal associate, Karanjawala & Company, Advocates, says, "It is crucial to report all interest income while filing tax returns and keep the interest certificates safely for accurate reporting." Note that from FY 2021–22, if the interest earned on Employee Provident Fund (EPF) contributions exceeds Rs 2.5 lakh, which is taxable.

Form 26AS

This is a statement that contains all the details of the tax deducted and deposited against your PAN with the government. Individuals must cross-check the information available in 26AS with the information available in the TDS certificate, and interest certificate. Form 26AS can be downloaded through the TRACES portal after logging into the income tax audit. Jain says, "Check if the TDS mentioned in Form 26AS matches the TDS certificates you have received. Cross-check other financial transactions mentioned in Form 26AS to ensure they are correctly reflected in your tax return."

Annual Information Statement

The Annual Information Statement (AIS) provides a more detailed view of the information contained in Form 26AS. All the relevant information in the AIS gets pre-filled in the ITR form. Vipul Jai, partner, PSL Advocates & Solicitors, "AIS, being a comprehensive statement of taxpayers’ financial transactions that have been reported to the Income Tax Department, is another important document that can be referred to while filing ITR to ensure the accuracy of ITR." AIS can be downloaded from the Income Tax Portal after logging into the account. The AIS contains information on TDS, tax collected at source (TCS), 53 specified financial transactions (SFTs), and other taxes paid. If there is any error in the AIS or a particular income reflected in the AIS does not relate to her, she should report this online.

   

Investment proof and capital gain details

Individuals can claim tax-saving investments if they opt for the old tax regime. Tax savings are declared and submitted to employers, but if missed, they can still be claimed on ITRs. Ankit Jain, partner, Ved Jain & Associates  says, "If donations have been made to eligible charitable organisations, collect receipts or certificates in Form 10BE." A Form 10BE is proof of Section 80G deductions.  Singh says, "Apart from this, capital gains earned from the sale of property, shares, and mutual funds have to be reported while filing ITR." Keep records of purchase cost, sale proceeds, and expenses (brokerage fees, stamp duty, legal fees).

 Details to be kept handy

. Bank Account Detail: It is mandatory to provide details of the bank account held by an assessee.
 

. Investment in unlisted shares: details like date of purchase, face value of shares, opening and closing balance, etc
 

. Aadhaar Number:  An individual is required to quote his/her Aadhaar number while filing an ITR
 

. Monthly salary slips: The salary slip mentions the amount deducted from your salary and deposited into your Employees’ Provident Fund (EPF) Account.
 

. Interest and principal payment statement for a home loan: The principal amount gets a deduction under Section 80C. The interest on your home loan gets tax benefits under Section 24.