Mumbai: Ahead of the end of financial year (31 March), employers ask their employees to furnish proofs of investments, insurance premium amount, rent paid, etc so that tax deduction at source (TDS) is kept to the minimum possible amount.
ETV BHARAT presents you a list of some of the important documents that a tax payer need to have.
House rent receipts
You get House Rent Allowance (HRA) as part of your salary package. HRA is exempted from tax and you can minus the rent amount from your gross income and then calculate the tax outgo. For availing the benefits of HRA, you need to furnish rent receipts.
Read more:Cabinet approves pact between India and South Korea on startup cooperation
You can also claim tax exemption on rent if you are staying at your parent’s home and paying rent to them. If you don’t furnish the rent receipt the amount which you are paying as rent will be counted with taxable income.
Landlord’s PAN card
Keep this in mind that if you are paying more than Rs 1 lakh rent in a financial year, then you will have to furnish PAN card of the landlord. This is because the rental income is taxable under the Income Tax Act. If you are paying annual rent of Rs 1 lakh or less than that, you don’t need to furnish the PAN card. Your landlord will show the rental income he or she is making from you in his or her ITR.
Insurance premium proofs
The premium you pay for buying life and health insurance covers are exempted from tax. These covers include for you and your nuclear family and your parents as well. Towards the end of the year, your employer will ask you to submit the proofs for the same. Remember that you had mentioned this in the investment proposal form. So if you fail to produce the documents in its support, you will lose out on some more money.
Tuition fee proofs
You must inform in advance your kid’s school for giving you proof for tuition fee you pay for your child. This you should do in the beginning of the year so that you are not in trouble towards the end of the year. This habit will make the procedure smooth as the school will not be caught unawares at the end when you approach it. Tuition fee for up to two kids is tax exempt under Section 80C of the Income Tax Act, 1961.
Form 26AS
Form 26AS has details related to your taxes. It shows how much tax you have already paid in a financial year. You can check tax deducted at source (TDS) in Form 26AS. For the purpose, you need to log on to income tax website https://incometaxindiaefiling.gov.in.
In the link, you need to sign in first if you haven’t already registered your account. After logging in, go to ‘My Account’ and click on Form 26AS and select the year and PDF file you want to download. This will make your tax filing exercise hassle free.
