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7 important income tax documents you MUST know of

Last updated on: December 14, 2011 06:33 IST

The task of filing income tax returns could be quite daunting for many, owing to the plethora of forms the process involves. But in reality it isn't as complex as it seems. Here is a quick guide to help you understand the typical documents and forms required for filing returns. A clear understanding helps you to file your returns correctly and accurately.

7 important income tax documents you MUST know of

Last updated on: December 14, 2011 06:33 IST

1. Form 16

Form 16 is the certificate of tax deduction at source (TDS), given by employers. At the end of each financial year, your employer must mandatorily issue a Form 16 detailing the salary income earned in the year along with the tax deducted on behalf of you. It is however not compulsory to issue a Form 16, if there has been no TDS deduction in that year.

In cases where you have worked in two different companies in a financial year, Form 16 would have to be obtained from both the places.

7 important income tax documents you MUST know of

Last updated on: December 14, 2011 06:33 IST

2. Form 12B

This form is issued by the employer if your income is over and above Rs 1,50,000. It details all particulars of perks and fringe benefits given by the employer in the financial year.

3. Form 16A

Form 16A details incomes and TDS from sources other than salary. This would include interest on securities, rental income, winnings from lottery and horse race, insurance commissions, payments in respect of deposits under National Savings Scheme, fees for professional or technical services. You would have to obtain this statement from each of the source of income.

7 important income tax documents you MUST know of

Last updated on: December 14, 2011 06:33 IST

4. ITR-1

The ITR-1 is the most basic form used to file returns. This form is for all individuals with income from salary, pension, income from agricultural and deposit interest. The ITR-1 form is not applicable for those with income from house property (rental income or proceeds from sale of property), business, brought forward loss of earlier years, or those with capital gains.

7 important income tax documents you MUST know of

Last updated on: December 14, 2011 06:33 IST

5. ITR-2

For individuals and Hindu Undivided Families (HUF), with income from activities other than business, or on account of being a partner in a partnership firm, ITR-2 is applicable. This form is for those, with capital gains arising out of sale of property, stocks, mutual funds, house property, interest from National Savings Certificates (NSCs), other interest bearing instruments and rental income from house.

6. ITR-3

Form ITR-3 is meant for those individuals and HUFs who are partners in firms. It also applicable if you are filing returns on behalf of an HUF that is a partner in a firm. The ITR-3 is not applicable for those carrying out any business under proprietorship.

7. ITR-4

The ITR-4 form is meant for individuals and HUFs who are carrying out business transactions and activities under proprietorship. The form is not applicable for any other business activity that is not a proprietary business.

7 important income tax documents you MUST know of

Last updated on: December 14, 2011 06:33 IST

Points to keep in mind when filing returns:

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