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Filing income tax returns: Keep these documents handy, now

January 11, 2017 08:30 IST

Whether salaried or running your own business, it’s about time to get your investment proofs in tax-saving instruments ready for filing your income tax returns later this year.

Here's a brief gist of all the documents which you need to keep handy.

1. Section 80 C investments

Section80C investments constitute an important chunk of tax planning that people do and hence contributes towards lower income tax.

Let streamlined finances be a feature from this year, and may it never lose its sheen the way New Year resolutions do after a month!

Keep the following documents ready or arrange to get the originals within the next few days quickly:

  • Life insurance premiums paid
  • ELSS (Mutual Fund) investments made
  • Contributions to Provident Fund
  • Premiums paid for retirement plans
  • School fees paid for children: the receipts
  • Payment of receipt for home loan principal
  • Any NSC bonds bought
  • Any tax saving bank FD or similar deposits made
  • Contribution to pension account and NPS

2. Investments under other sections

The following documents should be included to avail tax exemption under other sections apart from 80C:

  • House rent paid in excess of the HRA received provided the payer is not having an own house
  • Loans taken for higher education
  • Medical insurance policy premiums paid for self, family, and parents
  • Interest received from the savings bank account up to a limit of Rs 10,000
  • Receipts of interest paid on home loan
  • Medical expenses undertaken for self, family, and parents
  • Receipts of donation to causes under Section 80G such as the Prime Minister's Relief Fund
  • Receipts of contribution to political parties
  • Receipts of income received from patents and royalties
  • Education loan interest documents
  • Stock trading and mutual fund statements for capital gains

The list provided here is not exhaustive but covers a majority of investments and expenses eligible for tax exemption.

Having the originals handy and converting them into the format required by your office before the end of this month will serve you in good stead. Otherwise excess TDS may be deducted from your salary which you will have to claim later.

Though the process is not tedious, it still saves time if one has all the proofs of these documents ready for submission. You will save time and energy later.

Furthermore, it will give you the satisfaction of having completed an important activity on time, in style!

So, start making the list of documents which will have to be submitted and get all their receipts and originals in place before this month ends!

More Personal Finance stories here

Photograph: eFile989/Creative Commons

Anil Rego is the founder and CEO of Right Horizons, an investment advisory and wealth management firm that focuses on providing financial solutions that are specific to customer needs.

Anil Rego