Income Tax: Taxpayers Beware! Prepare These 5 Documents Before Filing Your ITR to Avoid Hassles Later

Filing your Income Tax Return (ITR) every year is a legal obligation for all taxpayers. However, this process can often become complex—especially if you are not well-prepared with the right documents. Small mistakes while filing your ITR can result in delayed refunds, tax notices, or even penalties.

If you are planning to file your ITR for the Financial Year 2024-25 (Assessment Year 2025-26), it's best to prepare a few essential documents in advance. Doing so will save you time and help you avoid costly errors.

In this article, we’ll explain the 5 most important documents you must prepare before filing your ITR, along with some additional helpful documents. Let’s make this process smooth and stress-free.

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1. Form 16 – A Must for Salaried Individuals

If you are employed, your employer will issue you Form 16 at the end of the financial year. This document summarizes your annual salary, deductions, and the Tax Deducted at Source (TDS) from your salary.

What Form 16 Includes:

• Total annual salary

• Deductions like HRA, LTA, standard deduction

• Taxable income

• TDS details

Tip:
Verify Form 16 with your monthly payslips and bank statement to ensure consistency and avoid discrepancies.

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2. Form 26AS & AIS – Your Tax Credit Report

🔹 Form 26AS (Tax Credit Statement):

This consolidated statement shows all tax-related transactions recorded against your PAN.

It includes:

• TDS on salary

• Advance tax paid

• TDS on interest from bank/FD

• High-value financial transactions

🔹 AIS (Annual Information Statement):

AIS provides a detailed view of all your financial activities such as:

• Savings account interest

• FD/RD income

• Mutual fund and stock transactions

• Dividend income

Tip:
Always cross-check the information in Form 26AS and AIS on the Income Tax portal before filing ITR. This ensures that all income sources are accurately reported.

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3. Interest Certificates from Banks & Post Office

Income from savings accounts, Fixed Deposits (FDs), Recurring Deposits (RDs), and Post Office schemes must be reported in your ITR.

What You Should Do:

• Collect interest certificates from all banks and post offices where you have accounts or investments.

• Compare them with the AIS to avoid mismatches.

Tip:
Interest up to ₹10,000 from savings accounts is tax-free under Section 80TTA (₹50,000 for senior citizens under Section 80TTB).

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4. Investment Proofs Under Sections 80C, 80D, 80E

To claim tax deductions, you must have proper proof of your investments or expenses.

🔹 Section 80C (up to ₹1.5 lakh deduction):

• Public Provident Fund (PPF)

• ELSS (Equity Linked Savings Scheme)

• Life insurance premiums (LIC)

• National Savings Certificate (NSC)

• Tuition fees for children

• Employee Provident Fund (EPF)

• Home loan principal repayment

🔹 Section 80D:

• Health insurance premium for self, family, or parents

🔹 Section 80E:

• Interest paid on education loan

Tip:
Keep all relevant receipts, certificates, and policy statements handy to claim accurate deductions.

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5. Home Loan & Education Loan Details

🔹 Home Loan (Section 24b):

You can claim up to ₹2 lakh deduction on interest paid on home loans.

🔹 Education Loan (Section 80E):

Interest paid on education loans for yourself or your children is fully deductible for up to 8 years.

What to Do:

• Get interest certificates or statements from your bank or loan provider.

Tip:
Make sure to report both principal and interest components separately under the relevant sections.

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Other Important Documents You Should Keep Handy:

✅ Capital Gain Statements:

If you’ve sold any assets like property, stocks, or mutual funds, you must report the gains or losses.

Tip:

• Use reports from brokers, mutual fund platforms, or CAMS/Karvy to calculate long-term and short-term capital gains accurately.

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✅ Self-Assessment & Advance Tax Receipts:

If you’ve paid any taxes directly (outside of TDS), such as advance tax or self-assessment tax, keep the challan receipts with you.

Tip:
Mention these payments correctly in your ITR to ensure proper tax computation and avoid double taxation.

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Things to Keep in Mind Before Filing ITR:

1. Cross-Verify All Documents
   Always compare information across Form 16, 26AS, AIS, and bank statements to ensure consistency.

2. Do Not Miss Declaring Any Income
   Forgetting to declare interest income or capital gains can lead to notices from the Income Tax Department.

3. Smooth Refund Processing
   If you claim a refund, having all documents in place will ensure faster processing without delays.

4. Documents Useful in Both Online and Offline Filing
   Whether you file your return yourself or through a CA or tax consultant, having everything organized will make the process efficient.

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Conclusion

Filing your Income Tax Return is not just a legal formality—it’s a financial responsibility. With the right documents at hand, this task becomes straightforward, efficient, and free from errors. The 5 must-have documents outlined above, along with the additional proofs, will help you avoid last-minute stress and make the filing process seamless.

Remember: Good preparation is the key to avoiding penalties and ensuring your refund reaches you on time.

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✅ Here’s Your ITR Filing Checklist – Save It!

• Form 16 from your employer

• Form 26AS & AIS from the Income Tax Portal

• Interest Certificates from Banks/Post Office

• Proof of Investments (80C, 80D, 80E)

• Home Loan & Education Loan Statements

• Capital Gains Reports

• Advance Tax & Self-Assessment Tax Receipts