Complete checklist for young working-class to file income tax return

The yearly ritual of tax filing can be one hectic task for young first-time tax payers. Most people find it too complicated. The paper work and documents may be time consuming but absolutely essential as well.

In a recent episode of Money9 Helpline, Siddharth Patel from New Delhi asked for a complete checklist of documents to file tax.

General documents

To proceed with the task of filing returns, first ensure that you have the following general documents with you:

• PAN Number
• Aadhaar Number
• All the bank account details of the assessee
• TDS certificates (Form 16, Form 16A, Form 26AS, etc.);
• Tax Payment Challans
• Investment Proofs  (To claim deduction under section 80C, 80D, 80E, 80TTA, etc.)

For Salaried Income

Salaried individuals require some extensive paperwork in order to file their taxes. Here are a few of them:

• Form 16 (also known as Salary Certificate)
• Pension Certificate
• Arrear
• Full&Final Settlement
• Rent agreement & receipts
• Travel receipts
• PF Withdrawals
• Leave encashment
• Joining/relocation bonus
• Foreign salary slips (incase of foreign income)

For other sources of income

• Bank Passbook/ Post Office Savings Passbook/ Statements and Interest Certificates
• Dividends/ Warrants
• Form 26AS
• Accrued Interest
• Lottery Income
• Agricultural Income
• Clubbed Income

Not only is it important to file your yearly returns but also to know about various deductions permitted as per the Income Tax Act, 1961.

“I paid my health insurance premium through my credit card and hospitalization bill due to Covid-19. Am I eligible for any sort of tax relief?” asked Swapnil Roy from Kolkata asked on Money9 Helpline.

You wouldn’t get any additional claim, you can just claim for the premium you have already paid. As per tax expert Gauri Chadha, “So, whatever you have paid by credit card or cash you would get a claim for that. Some employers provide medical reimbursement to their employees. The office bears the expenses for their hospitalization, that amount is fully taxable.”