Documents Require To File IT Return & Claim Deductions

Financial Year is going to close. All Income tax Assesses are in hurry about their tax assessment. Getting sure about done adequate investment (Limit U/s 80C Rs.1,50,000/-) to  claim & save maximum tax rebate. Arranging documents pertaining to investment and tax return. 

First, all you need to know about Form 26AS. It is a summary of taxed deducted on your behalf and taxed paid by you. This summary is provided by Income Tax Department. It shows all details of deducted on your behalf by deductors, details of tax deposited by taxpayers and tax refund received in the Financial Year. This form can be accessed from Income Tax Department's Website.

Second, All Salaried Tax Assess needs to get Form 16 issued by their employer to get file their Income Tax Return.

Third, Documents Require for Interest Income, 

> Assesses needs to update his bank statement/pass book for interest on 

   saving bank account.

> Interest Income Statement (accrued or credited) on their Fixed Deposits.

> TDS certificate (Form 16A), if any, issued by banks or other financial 

    institution.

> Interest Accrue Certificate on NSC / Kishan Vikas Patra etc.

Fourth, Proof for Investment in Section 80C, Investment made under PPF, NSC, ULIPS, ELSS, RGESS are qualifies for deductions Under Section 80C.

Last Minutes Checklist to File Your IT Returns :

1. Pan Card

2. Bank Statement 

3. TDS Certificates

4. Tax Payment Challans (Advance Tax or Self Assessment Tax)

5. Form 16 / Salary Certificate received from the Employer.

6. Interest Certificates issued on your deposits

7. Rent Receipts copy (If You Are on Rent)

8. Life and Medical insurance payment receipts.

9. Tuition Fees Receipts.

10. Stock statement in case of trading in shares 

11. PPF Passbook for interest

12. Dividend warrants /amount

13. Interest Certificates on bonds

14. Details of interest accrue on NSC during the year.

15. Sale and Purchase deed of the property including Stamp Valuation of the           property (for land/building)

16. Repayment/Interest Certificate for Interest paid on housing loan and                 Principal amount Paid.

17. Donation Receipts for Section 80G (with PAN details of donnee)

18. Details of Expenses incurred on transfer of Re-Investment in property.

19. Any Other Tax Saving Investment receipts/proof.

20. Aadhar Card Copy (Mandatory for e-filing)

Remember all above documents are proof of income require for ITR filling purposes only does not require to attache along with ITR.

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Tax Relief For Agents

LIC agents main earning is commission. So, Income Tax Department allows some relief to favour Insurance agent. But this relief is for small commission earning agent. If commission earned from LIC insurance business is below Rs.60,000/- p.a. and if no separate books of accounts maintained then the entitlement for deduction is as follows:

i) On First Year Commission - deduction is 50%  

ii) On Renewal Commission - deduction is 15%

The LIC Commission after claiming deduction was mentioned above will be included and can be disclose with other source of income for tax purpose.

The benefit of Adhoc deduction will not be available to agents who have earned total commission of income more than Rs.60,000/- during the year.

In case gross commission earned by an Agent from LIC exceeds Rs.60,000/- per annum  then, he will be not entitled for claiming deduction referred above. He has to maintain books of accounts as required under the Income Tax Act. The following books and documents are recommended to be maintained :

1) Cash Book

2) Bank Book

3) Ledger Book

4) Journal Book

5) Vouchers And Bills

6) LIC Commission Statement

7) TDS Certificates Received from LIC

8) Bank Pass Book, Cheques Book, Deposit Voucher

9) All Other Connected Documents 

Also Read : deduction U/S 57 For LIC Agents

LIC Agents are entitled to claim all expenses incurred for generating LIC Commission such as :

a) Salary to Staff

b) Rent for Office Premises, in case own office then maintenance for the same

c) Fuel Expenses and maintenance for maintaining vehicles.

d) Books, Publications, Periodicals expenses connected to business

e) Printing And Stationery

f) Electricity Expenses

g) Travelling / conveyance Expenses

h) Telephone / Mobile / Internet Expenses

i) Postage Expenses

j) Depreciation Expenses on Vehicles, Computers and Other Office Equipment

k) Gifts, Diaries, Calenders Expenses etc.

l) Staff Welfare Expenses

m) Any Other Expenses related to generate commission.

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Deduction U/s 57 for LIC Agents

Deduction U/s 57 of Income Tax Act, 1961 for Income earned by LIC agent as Income From Other Sources :-

The benefit of adhoc deduction to Insurance agents of the Life Insurance Corporation having total commission (including first year commission, renewal commission and bonus commission) of less than Rs. 60,000 for the year, and not maintaining detailed accounts for the expenses incurred by them, may be allowed as follows :  

(i)  where separate figures of first year and renewal commission are available, 50 per cent of first year commission and 15 percent of the renewal commission;

(ii)  where separate figures as above are not available, 100/3 per cent of the gross commission. In both the above cases, the adhoc deduction will be subject to a ceiling limit of Rs. 20,000.

The “gross commission” in (ii) above will include first year as well as renewal commission but will exclude bonus commission. The complete amount of bonus commission is taxable and will be taken into account for purpose of computing the total income, and no adhoc deduction will be allowed from this amount. The benefit of ad hoc deduction will not be available to agents who have earned total commission of more than Rs. 60,000 during the year. The admissibility of the expenditure claimed by such agents will be decided by the Assessing Officers as per the provisions of the Income-tax Act. —Circular No. 648, dated 30-3-1993 

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