Financial data to collect before ringing in the new year - TDS certificate, bank statement, monthly budget

The year 2021 is about to end, and January 2022 will be here before you know it. Before you indulge in the year-end festivities and plan to wrap up 2021, you need to take stock of your finances. This would help you prepare your taxes for the financial year. Moreover, if you have committed financial mistakes in 2021 or if the year has taught you any financial lessons, you can start 2022 with a clean slate.

So, here are 5 important financial data that you should collect before you step into 2022:

• Bank account statements

First, collect and analyse the bank statements of all your accounts - savings and current. These statements would show the balances held in each account so that you know the liquid corpus that you have at your disposal. If you have accounts with multiple banks, collect all the statements for a consolidated account balance.

Note: Interest statement would be required for tax filing purposes for all your existing and active bank accounts for deduction under section 80TTA.

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• The average monthly budget

Analyse the expenses that you incurred every month in 2021. This would give you an estimate of your average monthly expenses. Based on this estimate, you can plan the next year’s budget.

Note: Banks charge a hefty fine for non-maintenance of the monthly average. Prudent monitoring will help you save on these costs.

• Your financial documents

When giving your financial portfolio a once-over, keep all your financial documents handy so that you can submit them whenever you need them for the submission of investment proof.

Important documents that you need would include:

1. Form 26AS with details of your TDS submissions in your PAN. 
   Note: You can avail your Form 26AS from the official website www.incometax.gov.in. 
2. Proof of tax saving investment for 80C, 80D, etc., such as life insurance premium, PPF receipts, medical insurance receipts, etc.
3. Form 16 for salaried employees
4. PAN Card
5. Home Loan repayment receipts

Note: Keeping the documents handy would not only be helpful for your investment proof submission but even at the time of filing your ITR next year.

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• Your investment portfolio

Check your investment portfolio, i.e. the statement of all your investments. Check how your investments are performing and whether your portfolio needs rebalancing. You can also switch from low interest yielding assets to high interest yielding assets to maximise the return potential of your portfolio.

Note: Moreover, your investment portfolio would be needed when you prepare your tax return, especially for your long and short term capital gains in the financial year and your tax-saving investment details.

• TDS certificates 

A TDS is deducted on different types of incomes that you earn. You should, thus, collect the TDS certificates which show the details of the TDS deduction. These certificates would help in income tax return filing when the financial year closes on 31st March 2022.

Note: Your Form 26AS, which can be downloaded from the income tax filing website, would have a consolidated statement of all the TDS deposited in your PAN. You can proactively check the same to cross-verify that all the due TDS has been duly submitted.

Related: Ways To Create A Brilliant New Year Financial Plan