What working women seek from the upcoming Budget 2016
February 24, 2016
Tips to Save the Prime Cut
March 10, 2016

Guidelines for submitting your investment proofs

Lot of confusion prevails among employees regarding what to submit as investment proof to save tax, when they receive a mail from the HR.

The article provides guidelines for submitting investment proofs. It lists down four reasons why you should submit investment proofs. These become necessary because the employer wants to make sure appropriate TDS is deducted on your annual salary. It helps in making final adjustments of TDS in your February and March salary.

The article further states the investment proofs your employer needs. Employees can claim deductions on repayment of principal and interest on a home loan. For this he/she will have to submit his/her home loan certificates/EMI. You have to submit proofs for investment made u/s 80C. The article elaborates on all these proofs.

Then the article discusses what if you fail to submit investment proofs. The thing is that if you have mentioned certain investments, but, not invested then you may end up paying higher income tax. In case you make investments after submitting income proofs to your employer then, do not worry as you can claim a tax refund while filing returns. Apart from this, other outcomes are mentioned in the article.

The article talks about other income proofs employees need to submit apart from salary. It is important to note that declaring additional income will save you from penalty for late payment of advance tax.

For proposed investment proofs you need to give a declaration that you will make certain investments, basis this declaration your employer will deduct TDS. In case you have accepted written intention to invest in 80C instruments, but, fail to submit proof, then higher TDS amount will be deducted in the last months.

According to Vaibhav Sankla, Director, H&R Block, employer presumes that you will avail all potential deductions, by submitting proof you validate this assumption and do not pay extra tax. Hence, no need to claim refund.

Source : Business Today