New Delhi, Business Desk. ITR-1 (Sahaj Form) has been activated by the Income Tax Department for the financial year 2019-20 (assessment year 2020-21). This means that salaried individual taxpayers with an annual income up to Rs 50 lakh can file income tax returns for the said year. However, those who are going to file income tax returns for the first time are still confused about the whole process. People filing income tax returns for the first time are trying to understand what documents are required and which forms have to be filled while filing income tax returns. If you have knowledge about all the necessary documents, then you can easily file your own income tax return.
Let us know which documents and things have to be kept in mind while filling the income tax return:
1. Form 16: This is a type of certificate that your employer issues. In this form, the employer gives details of tax deducted from your salary and the tax deposited to the Income Tax Department. Most employers issue this form before 15 June. However, this time its duration has been extended.
2. Form 26AS: Form 26AS is an annual statement related to tax. Checking of Form 26AS is most important before filing income tax return as the form contains complete details of tax deductions made by your employer, tenant and other trade partners. Apart from this, if you have made an FD and have deducted tax on the income from it, then the details of that will also be found in this form.
3. Evidence related to tax saving: If you have invested in some funds on which you can get tax exemption, then you need documents related to it. They also include the receipt of insurance premium deposited, documents related to ELSS fund investment. If you have claimed tax exemption on the basis of education loan or home loan, then you will need a statement from the bank.
4. Capital Gain Tax Statement: If you have invested in the stock market and mutual funds, you will need a capital gains statement to file income tax return.
5. Personal information is also important: If you are filling in a simple form, in addition to the above details, you will need the bank details, PAN number and email ID. You should ensure that you enter the correct information while filing ITR as the Income Tax Department can reject your return if there is no match in the details.
6. It is also important to remember the ITR filing deadline: The government has extended the deadline to file income tax returns for the assessment year 2020-21 to November 30, 2020, given the circumstances associated with Kovid-19. After this, you will have to pay a penalty for filing income tax return. The government added a new section in the Income Tax Act last year, which provides for a maximum penalty of Rs 10,000 for late filing of returns.