Blog · Income year 1 July 2025 to 30 June 2026
How to sort a year of bank statements for your tax return
For a self-employed person, the bank statements are most of the tax return. Sort each payment one time, in this sequence. Then you have the figures for the return.
1. Make sure that you have all twelve months
Get the statements of each account from 1 July to 30 June. If a month is missing, income is missing. Each statement must start with the last balance of the month before.
2. Sort the money that came in
- Fees, sales and rent: business income.
- Your salary: emoluments, which your statement of emoluments already shows.
- Interest and dividends: other income, which can be exempt.
- Transfers between your own accounts, loans and refunds: not income.
3. Decide about cash deposits and unclear payments
For a cash deposit or a transfer with no clear name, you must make a decision. The statement does not show the source. Write down your decision and the cause.
4. Sort the money that went out
- Costs of the business, such as supplies, rent of premises and bank charges.
- Payments that give a relief, such as a pension contribution, a medical insurance premium or school fees.
- Tax that you paid to the authority during the year.
- Private spending, which you do not use.
5. Add the totals and keep the record
Add each group for the year. Keep the list of payments behind each total. If the authority asks about a figure, you can show where it came from.
Questions people ask
Are transfers between your own accounts income?
No. Transfers between your own accounts, loans and refunds are not income.
How do you sort a cash deposit?
Find the source of the cash, and write down your decision and the cause. The statement does not show the source of cash.
Are all twelve months necessary?
Yes. If a month is missing, income is missing. Then the totals on your return are incorrect.
Let IT01 AI do these steps
IT01 AI is an app for Mac, Windows and Linux. It reads your bank statements and your statement of emoluments on your computer, sorts each payment, and calculates the tax with each figure linked to the Act. One payment of Rs 4,990, and the licence has no end date.
This article explains the law as it stands on 3 October 2026. It is not tax advice.