Your Core Personal Information
Before you even begin, ensure you have your basic identification details ready. Your Permanent Account Number (PAN) is the most critical document for any tax-related activity. Equally important is your Aadhaar card. It is mandatory to link your PAN with
your Aadhaar for your return to be considered valid. You will also need details of all your active bank accounts, including the account number and IFSC code. Remember to pre-validate the bank account where you wish to receive your tax refund, if any.
The Holy Trinity of Tax Forms
For salaried individuals, Form 16 is the foundational document. Issued by your employer, it summarises your salary, allowances, and the tax deducted at source (TDS). If you've switched jobs during the financial year (FY 2025-26), you will need a Form 16 from each employer. Next, download your Form 26AS, which acts as your tax passbook, showing all taxes credited against your PAN, including TDS, advance tax, and self-assessment tax. Finally, and most importantly, review your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS). These statements provide a comprehensive view of all your financial transactions reported to the tax department, such as interest income, dividends, and property sales. Reconciling your income with AIS is crucial to avoid mismatches and potential tax notices.
Gathering Proof of Income
Your income isn't just your salary. You must report earnings from all sources. Collect bank statements or interest certificates for income from savings accounts and fixed deposits. If you earn rental income, have your rent receipts and details of any municipal taxes paid ready. For those who have invested in stocks or mutual funds, you will need capital gains statements from your broker or mutual fund house. Also, gather any statements related to dividend income you may have received.
Documents for Tax-Saving Deductions
If you plan to opt for the old tax regime, this step can significantly lower your taxable income. Collate proofs for your deductions under Section 80C, which has a limit of ₹1.5 lakh. This includes receipts for life insurance premiums, Public Provident Fund (PPF) contributions, ELSS investment statements, home loan principal repayment, and children's school tuition fees. Don't forget proofs for other key deductions, such as health insurance premium receipts for Section 80D, your home loan interest certificate for Section 24(b), and details of any donations made for Section 80G. If you live in a rented house and claim House Rent Allowance (HRA), keep your rent receipts handy.
Choose Your Tax Regime Wisely
For the Assessment Year 2026-27, the new tax regime is the default option. It offers lower tax rates and a standard deduction of ₹75,000 for salaried individuals, but you cannot claim most common deductions like those under Section 80C and 80D. The old tax regime allows you to claim these deductions but has higher slab rates and a standard deduction of ₹50,000. It is beneficial to do a quick calculation to see which regime results in lower tax liability for you. The old regime is generally more suitable for those with significant investments and expenses like HRA and home loan interest.
