With 31 July being the due date for filing income tax returns for Assessment Year 2026-27, taxpayers have just about two weeks remaining to prepare and complete the process. According to reports from Mint, as of 17 July, more than two crore ITRs have already been filed, highlighting the urgency of proper documentation maintenance. Tax compliance nowadays extends beyond annual filing to include vigilant monitoring of tax-related compliance issues with tax authorities.
Investors should retain all essential information to establish the purchase, sale, holding period and taxability of investments. As reported by Mint, broker contract notes and associated documentation help establish proof of equity and derivative transactions, while Consolidated Account Statements (CAS) and AMC statements help track mutual fund holdings, SIP installments and redemption history. These records are necessary for accurate ITR filing, claiming tax benefits, calculating capital gains and handling tax notices.
Form 26AS, Annual Information Statement (AIS), and Taxpayer Information Summary (TIS) enable investors to verify, match for any omissions and cross-check reported income. According to Mint, these documents help check taxes deducted at source (TDS) and other high-value transactions before filing returns. ITR copies, acknowledgements, and tax challans provide evidence of tax filing and payment, with these records required to be preserved for at least 8 assessment years.
A well-thought-out digital archive can significantly reduce compliance hassles and tax-related issues. As reported by Mint, investors should store scanned copies of tax documents in cloud storage with folders arranged by financial year. The report recommends downloading AIS, TIS, Form 26AS, and CAS annually rather than relying on future portal availability. Important information related to corporate actions on stock investments, including bonus shares, rights issues, mergers and demergers, should also be retained. Additionally, investors can now save PDF copies of tax returns for record-keeping and mailing purposes, with both personal and CRA-ready versions available through platforms like Wealthsimple Tax.
