Income Tax: Deadline for submitting tax-savings proof is near, know why it is important to submit documents on time

financial year 2024-25 Companies have given their employees to Proof of Tax-Savings Investment Instructed to deposit. Most of the companies for this 15 January 2025 The deadline has been fixed. If employees do not submit documents by this deadline, additional tax may be deducted from their salary. Let us understand this process in detail.

What does tax-savings mean?

The objective of tax-savings is to avail the benefits of exemptions offered under income tax.

• Old regime of income tax section under 80C and 80D The benefit of deduction is available on various investments and expenses.
• These deductions help in reducing the tax liability of taxpayers.

Investment Options under Section 80C:

1. Public Provident Fund (PPF)
2. Equity Linked Savings Scheme (ELSS)
3. life insurance policy
4. Tuition fees for two children

Under Section 80D:

• Benefit of deduction on health insurance premium.

Employees can take advantage of tax savings by investing in these options.

Why do companies ask for tax-savings proof?

Companies withdraw money from employees’ salaries every month TDS Bites.

1. Employees at the beginning of the financial year Tax-Savings Plan Present.
2. of the company Finance Department Based on these plans, the estimated tax for the entire year is calculated.
3. Tax-savings proof is sought by January 15 so that:
   • Taxes for the entire year can be calculated correctly.
   • Any additional liability in tax can be adjusted from the salaries of January, February, and March.

If proof is not given:

• If an employee does not provide proof of his investment, the company will deduct more tax.
• This deduction will be made from the salary between January and March.

What will happen if proof is not given?

1. More tax will be deducted:

If employees do not submit tax-savings proof on time:

• The company will assume that the tax-savings have not been invested.
• As a result, more tax will be deducted from the salary for January-March.

2. Salary cut:

Due to higher tax deduction, less part of the salary will be credited to your bank account.

What will happen if proof is given after the deadline?

If proof is submitted after the January 15 deadline:

1. The company will not revise your TDS.
2. you at the end of the financial year Income Tax Return (ITR) Tax refund claim has to be made at the time of filing.
3. The tax refund process may take time.

What documents are required for tax-savings proof?

1. House Rent Allowance (HRA):
   • Rent receipt.
   • PAN of the landlord (if the rent is more than ₹1 lakh).
2. Section 80C:
   • Copy of PPF passbook.
   • ELSS investment statement.
   • Receipt of life insurance policy.
   • Receipt of children’s tuition fees.
3. Section 80D:
   • Receipt of health insurance premium.

Benefits of submitting tax-savings proof on time

1. Avoidance of excess tax deduction:

   By submitting proof on time, additional deduction in salary for January-March can be avoided.

2. Correct Tax Calculation:

   Companies will be able to calculate your tax correctly.

3. No hassle of tax refund:

   If proof is given on time, there will be no need to claim refund.