Documents Required for filing Income Tax in India

Gather these documents to e-file your income tax returns in India. Go through this list to see the documents you’ll need to do your taxes. You won’t need all the documents listed here as they vary on a case-by-case basis.

• PAN number

For Salaried Employees

• Form-16 issued by your employer

Documents related to interest income

• Bank statement/passbook for interest on savings account.
• Interest income statement for fixed deposits.
• TDS certificate issued by banks and others.

Form 26AS

Form 26AS is a summary of taxes deducted on your behalf and taxes paid by you. This is provided by the Income Tax Department.
It shows details of tax deducted on your behalf by deductors, details on tax deposited by taxpayers and tax refund received in the financial year. This form can be accessed from the I-T Department’s website.

Section 80 Investments

• Section 80C investment documents. Investment made under PPF, NSC, ULIPS, ELSS, RGESS qualify for deductions under Section 80C.

Keep these documents at hand to claim the following expenses as deductions -

• Your contribution to Provident Fund
• Your children’s school fees
• Life insurance premium payment
• Stamp-duty and registration charges
• Principal repayment on your home loan

The maximum amount that can be claimed under Section 80C has been changed to Rs.1,50,000 in FY 2014-15 from Rs.1,00,000 in FY 2013-14.

Other Investment Documents

• Interest paid on housing loan. Interest on housing loan is eligible for tax saving upto Rs 2,00,000. This is for a self-occupied house.
• Education loan interest payments.
• Stock trading statement. The stock trades that were made during the year may be taxed under Capital Gain.

How much Income Tax do I need to pay?

Your income is taxed according to income tax slab rates. Tax slabs have not changed since financial year FY 2014-15 (assessment year AY 2015-16). Income tax slab rates are same for these 3 financial years – FY 2014-15, FY 2015-16 and FY 2016-17.

Income Tax Slab Rates for FY 2015-16(AY 2016-17)

[These income tax slab rates are also applicable for FY 2016-17(AY 2017-18) and FY 2014-15(AY 2015-16)]

Income tax slab for individual tax payers & HUF (less than 60 years old) (both men & women)

Income Slab	Tax Rate
Income up to Rs 2,50,000	No Tax
Income from Rs 2,50,000 – Rs 5,00,000	10%
Income from Rs 5,00,000 – 10,00,000	20%
Income more than Rs 10,00,000	30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.

Income tax slab for senior citizens

(60 years old or more but less than 80 years old) (both men & women)

Income Slab	Tax Rate
Income up to Rs 3,00,000	No Tax
Income from Rs 3,00,000 – Rs 5,00,000	10%
Income from Rs 5,00,000 – 10,00,000	20%
Income more than Rs 10,00,000	30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.

Income tax slab for super senior citizens

(80 years old or more) (both men & women)

Income Slab	Tax Rate
Income up to Rs 2,50,000	No Tax
Income up to Rs 5,00,000	No tax
Income from Rs 5,00,000 – 10,00,000	20%
Income more than Rs 10,00,000	30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.

How to calculate income tax from income tax slabs?

This example explains how to apply tax slabs to calculate income tax for FY 2015-16(AY 2016-17).

Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his tax dues for FY 2015-16.

Income Slab	Tax Rate	Tax calculation
Income up to Rs 2,50,000	No tax
Income from Rs 2,50,000 – Rs 5,00,000	10% (Rs 5,00,000 – Rs 2,50,000)	Rs 25,000
Income from Rs 5,00,000 – 10,00,000	20% (Rs 8,00,000 – Rs 5,00,000)	Rs 60,000
Income more than Rs 10,00,000	30%	nil
Tax		Rs 85,000
Cess	3% of Rs 85,000	Rs 2,550
Total tax in FY 2015-16 (AY 2016-17)		Rs 87,550

Income tax slab for domestic companies for FY 2015-16(AY 2016-17)

If you are registered as a company, the income tax slab rates do not apply to you. Domestic companies are taxed at 30% on their total income. A 5% surcharge is payable if income is more than Rs 1 crore but less than Rs 10 crore. If total income is more than Rs 10 crore, 10% surcharge is applicable.

Some incomes are taxed at special rates

Although total income is taxable at income tax slab rates mentioned above. Some incomes are taxed at special rates.

Nature	Tax Rate
Short term capital gains from assets (Other than shares & mutual funds)	At Income Tax Slab rates listed above
Long term capital gains from assets (Other than shares & mutual funds)	20%
Short term capital gains on shares and equity mutual funds	15%
Long term capital gains on shares and equity mutual funds	NIL
Short term capital gains on debt mutual funds	At Income Tax Slab rates listed above
Long term capital gains on debt mutual funds	At 20% with indexation

Who should pay Income Tax?

• Your gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs.2,50,000 in the financial year that begins on 1st April and ends on 31st March next year. 
• This limit is Rs 3,00,000 for senior citizens ( who are more than 60 years old but less than 80 years old) or Rs 5,00,000 for super senior citizens (who are more than 80 years old) 
• You are a company or a firm irrespective of whether you have income or loss during the financial year
• You want to claim an income tax refund.
• You want to carry forward a loss under a head of income.
• Return filing is mandatory if you are a Resident individual and have an asset or financial interest in an entity located outside of India. (Not applicable to NRIs or RNORs).
• Or if you are a Resident and a signing authority in a foreign account. (Not applicable to NRIs or RNORs).
• You are required to file an income tax return when you are in receipt of income derived from property held under a trust for charitable or religious purposes or a political party or a research association, news agency, educational or medical institution, trade union, a not for profit university or educational institution, a hospital, infrastructure debt fund, any authority, body or trust.
• A proof of return filing may also be required at the time of applying for a loan or a visa.

Income Tax Return Benefits

Here are some benefits of filing ITR:

1. For Loan Purpose: Having filed the ITR will help individuals, when they have to apply for a vehicle loan (two-wheeler or four-wheeler) or Home Loan. All major banks can ask for a copy of tax returns.
2. To claim refund: If you have a refund due from the Income Tax Department, you will have to file returns, without which you will have to forgo the refund. Some taxpayers may be primarily investing through fixed deposit. On such Investments tax is deducted at source (TDS) at 10 per cent. If the individual's total taxable income is less than the threshold of Rs 2.50 lakh, they can file returns and claim a full refund.
3. To carry forward losses: If you do not file returns, you will not be able to carry forward capital losses (short-term or long-term), if any, in a financial year to be adjusted against capital gains made in the subsequent years. A long-term capital loss in one year can be carried forward for eight consecutive years immediately succeeding the year in which the loss is incurred. Long-term capital loss can be adjusted only against a long-term capital gain in the year. But short-term capital loss (STCL) can be adjusted against long- as well as short-term capital gains.
4. Visa processing: If you are traveling overseas, foreign consulates ask you to furnish ITR receipt of the last couple of years at the time of the visa interview. Some embassies may ask for ITR receipts of previous three years, while some others may ask for the most recent certificate. This is especially true if you plan to travel to the US, UK, Canada or Europe, not so stringent for South East Asia or Middle East. Producing ITR receipts show that one has some source of income in India thus, strengthening your case as someone who will not leave the country for good but will return. When traveling to foreign countries, whether on a business or leisure trip, experts suggest you always carry income-related proofs along --- salary slip, Form 16 and ITR receipts. Consulates specify these requirements in most cases.
5. Buying a high life cover: Buying life cover of Rs 50 lakh or Rs 1 crore has become commonplace. However, these covers are available against your ITR documents to verify annual income. Life insurance companies, especially LIC, ask for ITR receipts these days if you opt to buy a term policy with sum insured of Rs 50 lakh or more. The sum insured one can get with a term cover depends on many factors one of which is the income of the insured.
6. Government tender: If one plans to start their business and need to fill a government tender or two for the same, they will need to show their tax return receipts of the previous three to five years. This again, is to show your financial status and whether you can support the payment obligation or not. However, this is no strict rule. It may vary depending on the internal rules of the government department.
7. Self-employed: Businessmen, consultants and partners of firms do not get Form 16. Hence, ITR receipts become an even more important document for them, provided their annual income exceeds the basic exemption limit of Rs 2.50 lakh. For all sorts of financial transactions, ITR receipts will be the only proof of income and tax payment for the self-employed.