It is advisable to consider voluntarily submitting tax returns, even if your income falls below the mandatory filing threshold. Many states require proof in the form of tax returns from the previous three years for real estate registration. When refunds are processed, it significantly simplifies the documentation of the associated transactions.

To secure approval for a mortgage loan in the future, it is essential to maintain a consistent history of tax filings. If you intend to apply for a loan as a co-borrower, you may be obligated to present your spouse’s tax returns. Additionally, credit card issuers may require proof of tax returns prior to issuing a card.

Essential Documentation Required for Income Tax Return Submission

• Documentation for accounts maintained with the Public Provident Fund, Registered Retirement Savings Plans, and savings accounts at financial institutions and postal services includes a passbook.
• Pay slips, Aadhar Card, PAN Card, and Form-16 TDS Certificate issued by your employer, which outlines the salary earned and any TDS deducted, if applicable, are also necessary. Additionally, Interest Certificates from banks and post offices are required.
• Any payments received beyond salaries, such as interest from fixed deposits or recurring deposits that surpass the TDS thresholds established by current tax regulations, must be reported using Form-16A.
• In the event of selling real estate, the buyer is obligated to furnish you with Form 16-B, which details the tax withheld from the sale proceeds, as mandated by law.
• Form 16C, provided by your landlord, specifies any tax withholdings related to your rental payments. Your annual tax statement is represented by Form 26AS, which encompasses all tax information associated with your PAN.
• This includes TDS deducted by your employer, TDS withheld by banks, and TDS from any other entities for payments made to you.
• Furthermore, it includes advance taxes you have submitted, self-assessment taxes you have paid, and documentation of tax-saving investments.
• Evidence for deductions under Articles 80D to 80U, such as health insurance premiums for yourself and your family or interest on education loans, is also required.

• Lastly, a bank statement for a mortgage loan is necessary.

What are various approaches to reduce income tax liabilities?

• Under Section 80C, individuals are permitted to claim a deduction of up to Rs 1.5 lakh for various expenditures, including investments in Equity Linked Savings Schemes (ELSS), Life Insurance Corporation (LIC) policies, mutual funds, educational expenses for children, and interest payments on home loans.
• Additionally, contributions made to the Central Government National Pension Schemes qualify for an extra deduction of Rs 50,000 under Section 80CCC, which is in addition to the Rs 1.5 lakh limit.
• Section 80D of the Internal Revenue Code allows taxpayers to deduct health insurance premium costs for themselves, their spouses, dependent children (up to 26 years of age), and dependent parents (up to 65 years of age).
• Contributions made to eligible charitable organizations and trusts can be claimed as tax deductions under Section 80G.
• For individuals with fewer than 10 children, the housing allowance may be reduced as per Section 13A.
• Loans taken for higher education are eligible for deductions under Section 80E.

• For owner-occupied residences, the deduction for home loan interest under Section 4 is capped at Rs 2 lakh, whereas there is no limit for properties that are rented out.