Which receipts to keep for income tax

First: which tax regime are you on?

Since FY 2023-24 the new tax regime is the default. It has lower slab rates but removes most deductions — 80C investments, 80D health insurance, HRA and home-loan interest on a self-occupied home don't reduce your tax under it. If you're on the new regime, you need far fewer proofs.

If you choose the old regime to claim deductions, every claim needs evidence. Your employer will ask for proofs before March, and the tax department can ask for them years later. That's what this checklist is for.

This is general information, not tax advice. Rules change every budget — check your situation with a chartered accountant.

The checklist (old regime)

• --Rent receipts for HRA — monthly receipts or the rent agreement, with the landlord's PAN if annual rent is above ₹1 lakh.
• --Section 80C investments — PPF passbook or statements, ELSS statements, life insurance premium receipts, children's tuition fee receipts, and home-loan principal certificates.
• --Section 80D health insurance — premium receipts for yourself, your family and your parents, plus bills for preventive health check-ups.
• --Medical bills for senior-citizen parents — if they have no health insurance, their medical expenses may be claimable within the 80D limit.
• --Home loan — the lender's interest and principal certificate for the year.
• --Education loan interest (80E) — the lender's interest certificate.
• --Donations (80G) — receipts showing the trust's name, PAN and registration details.
• --Capital gains — purchase and sale documents for shares, mutual funds and property.

If you freelance or run a small business

Business expenses you deduct — software, equipment, internet, travel for client work — need their bills. If you keep books of account under the income tax rules, they generally have to be kept for six years; GST-registered businesses must keep invoices and records for 72 months from the due date of the annual return. Our guide on tracking freelance expenses covers setting that up.

How long to keep them

The tax department can reopen past years — the time limit depends on the amount involved, and it has changed more than once. A simple, safe habit: keep proofs for at least six years after the assessment year, and keep anything about property, long-term investments or loans for as long as you own the asset, plus six years.

A storage system that takes five seconds

• --Capture at the source. Photograph the receipt when you pay, not in March. Thermal paper fades within months.
• --Attach it to the expense. A receipt next to its entry, with a category like “Medical” or “Insurance”, is findable in seconds. Here's a full digital receipt system.
• --Download the certificates once a year. Interest certificates, premium statements and capital-gains statements arrive in April and May — save them to one folder per financial year.
• --Back it up. One copy on your phone is not a backup.

Frequently asked questions