Submit tax saving proofs to your employer on time to avoid extra TDS

Submit tax saving proofs to your employer on time to avoid extra TDS

As the financial year end is just around the corner, and shortly your employer will ask you to submit tax saving proofs for the financial year to claim various tax deductions.  

In case you do not submit the tax saving proofs, your employer will deduct tax as per the applicable income tax slab rate. And this way you pay extra tax in the form of TDS (Tax Deducted at Source) from your remaining salary of the financial year. 

In this post, let’s take a look at the important tax saving investments and expenses proofs that need to be submitted to your employer to avoid extra deduction of TDS from your salary income.

What is the Tax Saving Proofs submission date?

There is no specific date or month about when an employer should ask for the submission of tax saving proofs. 

As a general practice, most of the employers ask for tax saving proofs from their employees between December and February depending on their internal policy. 

The dates to submit tax saving proofs will be intimated to you by your employer.

Important tax saving investments and expenses proofs to avoid extra TDS

You need to be submit tax saving investments and expenses proofs to your employer on time to avoid extra deduction of TDS from your salary income.

The most common investment and expenses proofs include: life and health insurance, PPF, NSC, ELSS, POTD, Tax saving FDs, HRA, Tution fees, Education loan, Home loan, Donation etc.

Following are some of the important tax saving investments and expenses proofs. 

Deductions under Section 80C

Following tax saving proofs needs to be submitted to get tax benefit under Section 80C

1. Life Insurance Premium Receipt

Life insurance premium receipts paid during the current financial year in the name of self, spouse, and children.

2. Public Provident Fund (PPF)

PPF passbook copy showing all the transactions and the account details or the stamped deposit receipt copy paid during the current financial year.

3. National Savings Certificate (NSC)

NSC passbook/certificate copy purchased during the current financial year.

4. ELSS Funds (Tax Saving Mutual Funds)

Copy of the ELSS account statement showing the investment date and amount.

5. Sukanya Samriddhi Account

Sukanya Samriddhi Account passbook copy or the deposit receipt copy duly stamped by the bank.

6. Tax Saving Bank Fixed Deposits (Tax Saving FD)

Copy of tax saving bank fixed deposit receipt (five years deposits)

7. Five-year Post Office Time Deposit (POTD)

Copy of 5-year post office time deposit receipt

8. Pension Plan from Insurance Companies

Copy of the premium receipt paid during the current financial year.

9. Children’s Tuition Fees

Copy of children’s tuition fee receipts paid to any school, college, university or educational institute in India during the current financial year for two children only.

10. Home Loan Repayment

Home loan statement showing the repayment details of the principal amount.

House Rent Allowance (HRA)

Original rent receipt (Monthly or Quarterly) have to be submitted. The rent receipt must have your landlord’s name, address, and signature. It should also have one rupee revenue stamp on it if you are paying rent by cash. PAN (Permanent Account Number) of the landlord is mandatory if the annual rent paid is more than Rs. 1 lakh.

Health Insurance Premium 

Copy of health insurance premium receipt paid. To claim this, the premium should be paid either by cheque or through online payment mode. 

Receipt of payment paid for a preventive health check-up (for self, spouse, dependent children or parents).

Payment of interest on education loan

Copy of education loan certificate showing the interest payment details separately. Only the interest paid for education loan can be claimed as an exemption under Section 80E.

Home loan interest payment

Copy of interest certificate from bank/financial institution showing the total amount of principal and interest separately. 

Copy of possession certificate or self-declaration from the employee with the details of occupation.

Expenditure on the health of disabled relatives

Copies of bills for medical treatment, training, and rehabilitation and Form 10-IA. You can claim deduction for this expenditure under Section 80DD. 

Expenditure on specified diseases

Copies of medical bills incurred by way of medical treatment for a specified disease along with a certificate from a hospital in the prescribed form. Form 10-I. You can avail this deduction for the expenses paid on the treatment of specified diseases under Section 80DDB.

National Pension System (NPS)

Copy of deposit receipt or account statement of NPS showing investment made in the current financial year. You can claim an additional tax deduction for an amount of Rs 50000/- under sub section 80CCD(1B). This is besides than under section 80C.

Donations

Receipts of donations made to certain funds, trusts, temples/mosque/church (for renovation), charitable institutions and political parties are considered as proofs for tax deductions.

Previous Employment Details

You need to submit Form 16 / Full and Final tax computation statement from your previous employer if you were employed by another employer in the current financial year before joining the current employer.

Hope you will not miss the timeline set by your employer for submission of the tax saving proofs. 

In case you do not submit the tax saving proofs within time, you may end up paying extra tax in the form of TDS from your remaining salary of the financial year. 

Also, note that there is no need to submit original copies of your tax saving proofs. Keep copies of all your original documents for your future reference.

Also read:10 Tax Saving Options other than Section 80C
Also read: All about ELSS | Tax Saving Mutual Funds

Also read: Things you should know about PPF
Also read: Documents needed while filing income tax returns (ITR) in India

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