With the month of July spelling out tax filing, have you been fretting about the tax deductions you won’t be able to claim. Thanks to last minute tax planning, did you fail to meet the deadline for submitting proof of investments to the employer?
Don’t forget to carry the investment proofs to your Chartered Accountant or the tax return preparer. These deductions available for investments cannot be completely ruled out just because they haven’t been submitted to your employer.
The tax deductions available for investments such as life insurance premium, tax-saving FDs, post office schemes, equity linked savings schemes, Rajiv Gandhi Equity Savings Scheme, PPF, health insurance premium and the likes can all be claimed at the stage of filing returns even if the proofs weren’t submitted to the employer.
Even amount donated to charitable organisation before March 31 can be claimed for deduction, even if they weren’t mentioned in the investment proofs.
The Form 16 figures will have to be entered in the income tax return form with caution as there would be a mismatch in terms of taxes payable. The employer would cut higher taxes as the deductions were ignored. After filing the return with the actual investment details, additional taxes cut by the employer would be returned by way of refunds.
Next year, however, one must plan for tax-saving investments ahead of time to assess the instruments better. This way you would be able to earn interest or build funds throughout the year. You would also save on the anxiety related to submission of investment proofs at the last minute.
One must preserve the proofs of investments until the end of the September succeeding the year which the returns were filed, as the Assessing Officer can call for scrutiny any time before this period ends.