Have You Submitted Your Income Tax Saving Proofs Till Now? If Not Be Prepared For A Major TDS Deduction
Gaurav Das, an employee in an insurance company realized the importance of sending timely tax-saving documents in February 2015, when he received a fifth of his stated monthly salary. Shockingly he made a call to the accounts department where he came to know that much of his Section 80C declaration and the medical insurance premium documents were not submitted. Most employees get this shock because they’re unaware of the process or show laziness. The companies insist their employees to provide proper proof of investments made or expenses incurred. In the absence of proper tax saving proofs, it becomes an even more difficult task for the employees to claim such tax benefits from the Income Tax Department. Therefore all salaried tax payers are required to submit tax saving proofs to their employers.
Tax saving proofs to be taken into Consideration
All employees need to understand the documentation required for the benefits they wish to claim so that they can be well prepared at the time when they are asked to submit their tax saving poofs. Here are some of the important tax saving investment/expenditure proofs which include:
• Investments – Under Section 80C
When it comes to investments such as Life Insurance, premium paid receipts are required to be submitted. For Public Provident Fund (PPF), if it is maintained with a bank or a post office, submit photocopies of the passbook showing all the transactions and the account details. In case of investment made in Equity Linked Savings Scheme i.e. ELSS, submit the ELSS fund statement.
• Tuition Fees
Submit the photocopies of school receipt carrying the seal of school and signature of the receiver.
• HRA Exemption
Pan of the landlord is mandatory for persons claiming this exemption. A copy of the lease rent agreement needs to be submitted.
• Mediclaim Premium
You are required to arrange the statement for tax purpose under section 80D. It is important to note that the premium should be paid either by cheque or through net banking and not in cash.
• Repayment of Housing Loan
If there is any existing house loan, then a latest bank certificate should be obtained by the bank carrying name of the employee, purpose of the loan, period of repayment (current financial year), interest and principal being shown separately.
• Single Premium Policies
A certificate is required to be collected from the insurer specifying the amount of premium eligible for exemption along with section reference.
The taxes deducted at source (TDS) are covered under Section 192 of the Income-tax Act, 1961 making it the obligation of the employer to withhold taxes at the time of payment of salaries. Once the actual proof is submitted, the accounts department compute the taxes according to the proofs of the actual investments made by you.
So after reading the above-mentioned things, you should now be well aware of these tax saving proofs which should properly be maintained so that you need not pay excess of TDS.