What information and documents do you collect before preparing an individual’s income tax return?

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RED SAG · Accepted Answer

I start with basics: PAN, Aadhaar, contact details, all bank accounts with the one for refunds, and residential status for the year. For salary, I collect Form 16 and salary slips. For other income, I get interest certificates, rental agreements and rent received, dividend details, and capital gains statements from brokers or mutual funds, plus sale and purchase deeds for any property sold. For deductions under the old regime, I gather proofs of insurance, provident fund, home loan interest and principal, health insurance and donations. Then I download Form 26AS and the AIS from the portal and reconcile them with the client’s documents, because missing interest or a share sale is a common reason for notices. For residents, I also ask about foreign bank accounts, shares or property, since these must be reported in the foreign assets schedule. Finally, I compute tax under both regimes where relevant.

What information and documents do you collect before preparing an individual’s income tax return?

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