Well, you cannot carry all the documents around and some need not clutter your file for too long either. However, every financial record, no matter how small, from an electricity bill to your tax return, has a purpose and a lifespan.

So think twice before you crumple that bill and slam dunk it into the waste basket!

Payslips

If you are employed, then payslips form a monthly record statement. From the point of view of tax returns, they are not of much importance. Most employers cover your salary details under Form 16.

However, it is advisable to keep them filed for atleast one year until your tax returns for the year are filed. They also come in handy when you are applying for a loan.

Credit Cards

Credit card transaction receipts may look like a useless piece of paper, but stop! Don't throw it yet. Not until you receive your credit card statement and verify the transactions and the amount stated.

Your monthly credit card statements should be kept for a year until you file your tax returns.

Bank Records

Do a regular check each year unfailingly and keep all those bank records related to taxes, business expenses, home improvements or loan payments etc.

Your bank account statement needs to be saved for a maximum period of two years atleast. Preserve your passbook for as long as you have an account with the bank.

Insurance

Own an insurance policy? Remember to keep your policy papers in order. Chuck them into the waste basket only after the insurance term ends or when you receive a claim.

However, if you plan to renew your existing policy, then keep all papers intact and filed in order.

For a health policy, remember to keep your health records in order as well. Your medical records will act as proof in case the company refuses to pay the claim amount on grounds of non-existence of the said illness.

In case of theft, loss of or damage to insured property, remember to keep a copy of the first information report (FIR), purchase papers and the policy papers until the insurance money is claimed.

Loans

Availed a loan for your house or that swanky new car? Keep every single paper associated with it in order.

Do not throw away the EMI statements until you finish paying the entire amount. They will come in handy if there is any discrepancy from the bank's side. They are also required when you file your tax.