Question

Identify what additional documents the clients need to provide in order for you to do their taxes.

Identify applicable deductions and credits available for the clients.

Differentiate types of income and expenditures.

Explain how you utilized the IRS website for staying current in the identification and application of appropriate tax codes and laws.

We also had income from some investments. We received interest and dividends from a few places. Can you tell me if those are reported on a 1099 form? If so, I may have to request this from my bank. We own our home and paid the typical homeowner’s expenses. What expenses will you need from us relating to our home? Are there any other questions you have for us, such as other deductions we can take? Just curious: this tax "stuff" is so much information to remember. How do you ever stay on top of all of these tax rules? Please let us know what other information you will need from us and what documents you will need us to send over to you. Thank you in advance

Answer 1

. For Salaried Employees

If you are a salaried employee, 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.

• PAN number
• Form-16 issued by your employer

Did you know that Form-16 is all you need to e-file your income tax returns on ClearTax? It’s that simple really. Got your Form-16? Start e-filing.

2. 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.

ClearTax automatically gives you tax benefit as per Section 80TTA when you enter your income from savings account interest. You won’t need all the documents listed here as they vary on a case-by-case basis.

3. 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.

Learn how to access your Form 26AS

4. Section 80 Investments

Know More

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

5. Documents Required to Claim the Following Expenses as Deductions

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

• Your contribution to Provident Fund
• Your children’s school tuition fees
• Life insurance premium payment
• Stamp-duty and registration charges
• Principal repayment on your home loan
• Equity Linked Savings Scheme/Mutual funds investment
• The maximum amount that can be claimed under Section 80C is Rs 1.5 lakhs.

Click here to see the detailed list of all the deductions available under Section 80.

To know more about how to claim deductions against your home loan, Click here.

6. 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. For let out or deemed let out property, there is no limit of interest on housing loan eligible for tax saving till FY 2016-17.

From FY 2017-18, the total loss from house property available for set off against other income is capped at Rs 2 lakhs and therefore, interest on housing loan is eligible for tax saving upto Rs 2,00,000 for let out property as well.

• Education loan interest payments.
• Stock trading statement: The stock trades that were made during the year may be taxed under Capital Gain.