You have submitted proofs of the investment for the FY21-22? To avoid higher taxes and to obtain tax rebates, we all make certain declarations to our employers at the beginning of the year. Now It is time to submit proof for the investment made. Let’s understand what documents you need to submit at the end of FY 21-22 to your employer to get relief.
| Everything you need to know about the submission of investment declaration proof :- you have submitted investment declarations in a form called form 12 BB at the beginning of a financial year for ensuring a higher in-hand salary, Now it is the time when your employer will verify the authenticity of the claims made by you. The document verification by the employer will be more strict. Let’s have a look at the Key points that you need to keep in mind |
Key points to keep in mind while submitting tax investment proof
Investment declaration proof must be submitted carefully to avoid any rejection of the claim by the employer.
- Check how much you have contributed or still need to contribute for the investments shown in the form 12BB
- Do not limit tax savings to Section 80C. There are other tools of investment too.
- Explore all tax-saving strategies available to you
Ensure that you have copies of all the investment documents
| Nature of claim | Evidence |
| House Rent Allowance: | Rent to be paid to landlord along with name, address and PAN/Aadhaar number of the landlord |
| Leave travel concessions or assistance | Leave travel concession or leave travel allowance as per salary package |
| Deduction of interest on borrowing Home Loan | Home loan Interest Certificate |
Deduction under Chapter VI-A
| Eligible investments for tax deductions | Particulars | Deduction Amount |
| 80 C | 80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, stamp duty and registration charges for purchase of property, Sukanya smriddhi yojana (SSY) , National saving certificate (NSC) , Senior citizen savings scheme (SCSS), ULIP, tax saving FD for 5 years, Infrastructure bonds etc | 1,50,000.00 |
| 80CCC Deduction for life insurance annuity plan. | 80CCC allows deduction for payment towards annuity pension plans Pension received from the annuity or amount received upon surrender of the annuity, including interest or bonus accrued on the annuity, is taxable in the year of receipt. | |
| 80CCD Deduction for NPS | Additional deduction of Rs 50,000 is allowed for amount deposited to NPS account | 50,000.00 |
| Section 80D – Medical Insurance | You (as an individual or HUF) can claim a deduction of Rs.25,000 under section 80D on insurance for self, spouse and dependent children. An additional deduction for insurance of parents is available up to Rs 25,000, if they are less than 60 years of age. If the parents are aged above 60, the deduction amount is Rs 50,000. | 25,000.00 / 50,000.00 |
Previous Employment Details :
In case you were employed with another employer in the financial year you need to give following documents: Copy of Full and Final Tax computation statement certifying Earnings and Deductions from your previous employer
Useful Tips :-
1. Last date of submission of investment proofs differs from employer to employer. You will get to know the last date by your employer.
2. In case you have not utilized your deduction limit u/s 80C to 80U, you can do so by March 31, 2021 and can claim the same at the time of filing ITR.
3. It is always advisable to start your tax planning at the beginning of financial year and avoid rushing at the last minute making poor investments.
4. Always keep a copy of the documents you submit to your employer.
5. You need not submit these documents while filing your income tax returns. However I-T department can investigate any tax returns for up to 6 years. So you should always file and maintain these physical records for 7 years.
6. LTA & Medical Reimbursement can be claimed only by submitting relevant proofs to your employer. You cannot claim these tax benefits while filing tax returns.
7. Other than the above you can claim all tax benefits while filing your tax returns, so if there is a dispute with employer for certain investment, you can claim the same while filing tax returns
| Why should you submit proof of investment? |
Employees can reduce their taxable income by submitting proof of investment. Employees can take advantage of tax rebates by submitting relevant proof for TDS deduction
What if you failed to submit proof of investment?
| If you have not submitted proof of your investment and your employer has deducted excess TDS, then you can claim a refund for the extra TDS deducted by filing your income tax return. |
