Employee to submit Tax Savings Proof to HR

The employees are constantly worried about their income tax because they fall into the high tax bracket, which is 30 per cent plus cess and surcharges. The high-paying salaried employees are always worried about the income tax withheld by their employer. Generally, in the month of January, the company where you are working asks you to submit investment proof or tax saving proof to claim deductions under the income tax. If has been often seen that employees often forget to submit the tax saving proofs since tax saving investments are not made till the last date of submission of proof.

As a result, the employer deducts a significant amount of TDS from your pay, resulting in a decrease in your take-home pay in the months of January, February, and March. which reduces your paying capacity in these months. Sometimes the employees break their fixed deposit, redeem mutual funds, sell shares or seek advances from the company to meet personal obligations such as repayment of home loans, auto loans, School fees of children and many more.

Therefore, failing to submit tax investment proof may not only reduce your savings and investments, also increase the tax liability for a short period. We suggest you to meet with your income tax consultant in Gurgaon so they can suggest which Slab of income tax you should go with. The income tax act has two slabs of income tax under which employees have the option to select either the old slab or the new slab.

Employees in the new slab are not eligible to claim any deductions, but those in the old slab are allowed to deduct their tax-saving investments, housing allowance (HRA), and many other deductions. We can simply say that you must pay income tax on the salary without claiming any deductions. It is important for the employees to consult the CA in Gurgaon to decide under which slab they should fall for benefits.

Here is an illustrative list of documentation that each tax-paying employee who chose the old slab should provide to their employer, whether it is a limited company in Gurgaon or a private limited company.

Proof to be submitted to the HR department for claiming deduction in Form 16

  • Proof of investment and saving under section 80C of the following:
    • Life insurance premium (LIC)
    • Payment for the non-commutable deferred annuity
    • Contribution to the approved superannuation fund
    • Employee contribution in statutory and recognised Provident fund
    • Subscription to national saving certificates
    • Contribution to tax-saver mutual funds or UTI
    • Tuition fee to any university, college, school or other educational institution situated within India for the purpose of full-time education (excluding any payment towards any development fees or donation or payment of similar nature)
    • Principal of loan repaid to the bank for purchase or construction of the residential house
    • Amount deposit in Tax saver fixed deposits for 5 years or more with a scheduled bank.
    • Amount deposit under senior citizens saving scheme
    • Amount deposited in 5-year time deposit in the post office
  • Proof of Mediclaim premium paid to the family members under section 80D
  • Rent receipt to claim HRA deduction. During this crucial time, businesses hold sessions to inform employees about tax-saving options. The speaker, who educates the employees on how to save on taxes, may be a chartered accountant or a tax expert in Gurgaon.
  • Proof of investment made in the National Pension Scheme (NPS) under section 80CCD

Tax Education session

During this crucial time, the businesses hold sessions to inform the employees about tax-saving options. The speaker, who educates the employees on how to save income tax, maybe a chartered accountant or a tax expert in Gurgaon.

Don’t be concerned, if you were unable to submit the proof

Don’t worry, whether you work for a government agency or a private company and were unable to provide proof of investments. You might ask a CA in Gurgaon to complete the tax saving form that the company has provided and assist him in finding the investment proof. A tax expert will assist you with more than just the filling out and submission of paperwork; he will also advise you on how to reduce your income tax. A chartered accountant will help you structure your salary if your employer allows it,

What if an employee doesn’t submit proof of investments to the employer?

Don’t worry we are here. If an employee of a private limited company in Gurgaon or a limited company did not submit the proof of investment, he or she can still claim the deduction in their income tax return (ITR). If proof is not provided, the employer can simply deduct more TDS, but it does not mean you cannot claim the deduction on your ITR. The ITR deadline for salaried individuals is July 31 after the financial year has ended. The employee should contact his CA in gurgaon and provide the tax advisor with documentation of his investments. He will include the eligible deduction in the ITR of the employee and claim the income tax refund of excess TDS the employee has paid on account of non-submission of proof of investment.

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