Every time a financial year draws to a close, taxpayers across India prepare to file ITR. When you file your tax return, include all your investment proof documents so your tax can be calculated correctly. These papers let you claim deductions and exemptions under the Income Tax Act, which lowers your taxable income.
This guide explains the documents required for ITR filing, outlines key provisions under the tax structure in India, and offers insights into deductions, tax free income and investment options, and more. It’s particularly useful for policyholders using life insurance plans as tax-saving tools.
Understanding the Tax Structure in India
The tax structure in India is progressive. It means your tax rate goes up as your income increases. You can choose between two main tax systems: the old regime or the new regime.
Under the old regime, taxpayers can avail of various exemptions and deductions by submitting valid proof documents. The new system has lower tax rates but fewer deductions.
With the new tax slab FY 25-26 introduce in the Budget 2025, it’s important to assess which structure works best for your financial goals. Tools like the income tax calculator can help you make an informed decision.
Why Investment Proofs Matter?
When you file an ITR, your employer or the income tax department may require you to submit proof of investments and expenditures to validate the deductions you’ve claimed. Failing to submit these can lead to higher tax liability and penalties.
These proofs not only justify your tax-saving claims but also serve as a record of financial discipline.
Key Documents Required for ITR Filing
To avoid last-minute hassles, keep the following documents required for ITR filing handy:
Form 16
Form 16, issued by your employer, summarises your income, deductions, and TDS for the financial year. It’s the primary document needed for salaried individuals.
Investment Proofs under Section 80C
You can claim up to ₹1.5 lakhs in deductions under this section. To file your return, you must submit the following documents:
- Premium payment receipts for life insurance
- Public Provident Fund (PPF) deposit slips
- ELSS mutual fund statements
- Tuition fee receipts for children’s education
- Home loan principal repayment certificates
Among these, life insurance plans stand out for offering dual benefits of financial protection and tax savings.**
Home Loan Interest (Section 24B)
You can claim up to ₹2 lakh of home-loan interest. Your lender provides a certificate showing the principal and interest paid.
Health Insurance Premium (Section 80D)
To claim this deduction, keep your premium payment receipt and policy document handy.
Education Loan (Section 80E)
There’s no cap on interest deductions for education loans. Provide a certificate from your bank or NBFC as proof.
Rent Receipts for HRA
To claim HRA, include your rent receipts, rent agreement, and the landlord’s PAN if your annual rent exceeds ₹1 lakh.
Capital Gains Documentation
For any gains from the sale of mutual funds, property, or shares, you must submit relevant purchase and sale documents to correctly compute and report gains.
Tax Free Income and Investment Options
Several tax-free income and investment options help you grow your wealth while enjoying tax benefits. These include:
- Interest earned on PPF and Sukanya Samriddhi Yojana.
- Maturity benefits from life insurance
- Long-term capital gains on equity investments up to ₹1 lakh
- Agricultural income
Combining such instruments with proper planning ensures optimal tax savings and long-term financial security.
Using the Income Tax Calculator
An income tax calculator helps estimate your tax liability and determine how much you can save by claiming eligible deductions. Always use it before finalising your investment decisions and before submitting documents required for income tax return.
Tips for Organising Your Investment Proofs
- Digitise your receipts and documents
- Store them in a secure cloud folder
- Create year-wise folders to make retrieval easier
- Always verify your figures against Form 26AS and the Annual Information Statement (AIS).
Being organised will make the process smoother when it’s time to file ITR.
Common Mistakes to Avoid While Submitting Investment Proofs
Submitting incorrect or incomplete investment proofs can lead to rejection of deductions and unnecessary scrutiny. Here are common mistakes and how to avoid them:
Submitting Invalid or Illegible Documents
- Blurred or unclear scans are often rejected.
- Ensure all documents are valid, legible, and up-to-date.
Missing the Financial Year Deadline
- Only investments made between 1st April and 31st March of the financial year are eligible.
- Don’t leave investments to the last minute; this helps you submit proofs on time.
Incomplete Proofs for HRA and Loan Claims
- For HRA: Include rent receipts, a rent agreement, and landlord's PAN (if applicable).
- For home loans: Submit both principal and interest certificates from your lender.
Mismatch between Form 16 and Form 26AS
- Always reconcile your submitted proofs with Form 16 and Form 26AS.
- Discrepancies can delay your refund or trigger scrutiny by the Income Tax Department.
Staying meticulous with your documentation helps ensure maximum tax benefits and a hassle-free filing experience.
Conclusion
Understanding and collecting the documents required for ITR filing is more than a compliance task—it’s an opportunity to reduce your tax burden efficiently. Whether you're a salaried individual, a business owner, or a homemaker, informed decisions and timely documentation can make a significant difference.
Investing in life insurance plans not only ensures financial protection for your loved ones but also brings attractive tax benefits. As new updates have been introduced in Budget 2025, now is the best time to evaluate your investment portfolio, assess your deductions, and organise your proofs.
Let this tax season be about peace of mind, not panic. Keep yourself informed, compliant, and financially secure.
** Tax exemptions are as per applicable tax laws from time to time.
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