Feature Alert: Now, get your 80C investment certificate on the fisdom app under Menu > My Account > 80C Investment Proof
For all the salaried employees, the HR department of your organisation would start bombarding you with emails and phone calls to submit the proofs of all the investments made and expenditures incurred which are eligible for tax deduction. This is a follow up exercise on the provisional statement submitted by you at the beginning of the financial year for the proposed investments to be made during the course of the year.
Things to know:
Under the Income Tax Act, an employer is obligated to compulsorily withhold a portion of the salary of all its employees as tax deducted at source (TDS). Thus, in order to avoid excess tax collection, employers take a provisional statement and calculate TDS on your net income after adjusting the deductible investments and expenditures. This helps avoid excess tax collection resulting in refunds later. You can check the same from your 26AS form available online in the official IT website.
Now, with the financial year coming to an end, employers start asking you to submit the proof of investments made by you. This is to ensure that they have calculated your net tax liability accurate and investments made by you are in line with the provisional statement provided by you. And in case of discrepancy resulting in any change in the total tax liability due to change in investments, it can be adjusted in the salary due to be paid in the last few months.
Though there is no specific date prescribed by the law for submission of investment proofs and it totally depends on your employer. However, most employers start asking their employees to submit investment proofs from the month of January and usually such proofs need to be submitted by latest by the 10th of March. The onus to submit these investment proofs is solely on the employees and failure to do would result in employers charging TDS on your total annual income without any tax deductible benefits.
Ideally, if you have made your investments then you should submit the receipt of such proofs as soon as possible. The best way is submit the receipts of all the investments is by checking your provisional declaration and submitting them in the same sequence. Proper numbering and following the same sequence as submitted in the provisional statement will avoid confusion and also ensure that you have not missed out on submitting any document.
Though the list of documents that needs to be submitted would vary for each one of you depending upon the investments made and expenditures incurred by you but the most common documents which you should remember would include:
List of documents for the income which is exempt from taxes would include:
You need to know your total allowance and then submit the necessary proofs accordingly.
List of documents for the investments made or expenditure incurred which are eligible for deductions under Section 80 would include:
Remember, none of these receipts need to be submitted to the income tax department while filing but you still have to submit all the documents related to your investments to your employer in order to avoid paying extra taxes. If you fail to submit these investment proofs to the HR department of your company within the specified time frame, then your employer will not pass on any tax benefit irrespective of such investments made by you. In order to avoid such a situation it is always advisable to submit the receipts of such investments at the earliest rather than waiting till the end.
This Diwali, we present a portfolio that reflect both sector-specific and stock-specific opportunities. With 2…
Thank you for showing interest in taking a BTST position using our Delivery Plus product.…
Thank you for showing interest in the consultation on trading strategies! Our expert will reach…
Even if you are a new participant in the stock market, the process of buying…
A company’s debt position can be gauged using the interest coverage ratio or ICR. This…
Muhurat Trading, a cherished tradition in the Indian stock market, takes place on Diwali, the…