The government has notified the income tax return (ITR) forms for FY 2018-19. This means that you can now start collecting the documents need to file your ITR for FY 2018-19. Although you have till July 31, 2019 to file your return, keeping the required documents handy in advance will make the process easier.
Here are the documents you must collect and things you must do before filing your ITR for FY 2018-19. Do keep in mind that for salaried people, usually file their return using either ITR-1 or ITR-2 which is now available on the e-filing website.
1. Form-16
If you are a salaried person, this is one of the most important documents for you to file your ITR. Abhishek Soni, CEO, tax2win.in, a tax-filing company, says “Form-16 is a TDS certificate issued to you by your employer to provide details of the salary paid to you and TDS deducted on it, if any. It is mandatory for your employer to issue Form-16 if your employer has deducted TDS from your salary. If no TDS is deducted from your salary, then you can request your employer to provide you the same.”
“ITR-1 issued by the tax department for FY 2018-19 is in sync with the Form-16. This means you are just required to copy paste the same details from the Form-16 to ITR. Last year, ITR-1 was not in sync with the Form-16 due to which taxpayers were required to use their salary slips to ascertain the required information,” adds Soni.
Form-16 consists of two parts: Part-A and Part-B. Part-A consists of all the details of the tax deducted by your employer during the year. Apart from details of the tax deducted from your salary, it also consists of the details of your Permanent Account Number (PAN), PAN and TAN of your employer, whereas Part-B of the form consists of your gross salary break-up details such as exempt allowances, perquisites etc.
Recently, the government revised the Form-16 format which provides detailed breakup of the tax-exempt allowances paid to the employee and also tax breaks claimed by him via his employer.
This year your Form-16 will also show you standard deduction of Rs 40,000. Also, if you have received any transport allowance and/or medical allowance or reimbursement, then it will be taxable in your hands for FY2018-19.
While receiving Form-16, one must check that the PAN mentioned on it is yours. If there is any discrepancy, then you must bring this to your employer’s notice. Your employer will rectify the mistakes in Form-16 and issue you a revised form.
2. Interest certificates from banks and post office
ITR forms this year also asks taxpayers to specify the source of their interest incomes such as that earned on savings account, fixed deposits or any other income.
Usually, the interest income received is taxable in the hands of an individual. However, individuals can claim deduction under section 80TTA of up to Rs 10,000 on the interest earned from savings account held with the bank and/or post office. Similarly, senior citizens can claim deduction of Rs 50,000 on the interest income earned from the deposits held with banks and/or post office.
Soni says, “Any discrepancy or any wrongly claimed deduction will be easily spotted by the income tax department.” Therefore, you must be careful while filling these details in your ITR. One must get the interest certificates either from the bank/s and/or post office branch/or any other financial institution to know the total interest earned.
If you do not get interest certificates, make sure your account passbook is updated and shows details regarding the interest credited to your account till March 31, 2019. Alternatively, if you receive TDS certificate for tax cut on interest income from a particular source (like a bank) for the full FY, then the interest earned will be stated in the TDS certificate itself. In such a case, you do not necessarily need a separate interest certificate if the TDS certificates cover the entire FY.
3. Form-16A/Form-16B/Form-16C
If TDS is deducted on the payments other than salaries such as interest received from fixed deposits, recurring deposits etc. over the specified limits as per the current tax laws, your bank (in case of fixed deposits) will issue you Form-16A providing you the details of the amount of TDS deducted……..Read More>>
Source:- economictimes
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