Investment proof is directly connected to the tax deduction at source (TDS).
Tax Saving Proofs: All the salaried employees are busy filling tax declaration forms in their companies these days, so that the incoming salary is not cut. In the tax declaration, people have to give all kinds of investment proofs, based on which the company determines your tax deduction.
What are these investment proofs in the tax declaration form, why are they necessary and what precautions should be taken while filling them, Sujit Bangar, Founder of Taxbuddy.com and Raj Chawla, Taxbuddy.com are telling you all these points carefully.
What is investment proof
Investment proofs are to be submitted in the last months of the financial year. You have to fill it mostly in the month of January. In the investment proof, tax saving instrument has to be given and along with the information, proof is also to be submitted.
Investment proof submission
Investment proof is directly connected to the tax deduction at source (TDS). TDS is deducted only on the basis of your proof. Depending on the investment proof, more or less TDS is deducted. This applies to the remaining 3 months of the financial year. Take-home pay does not affect profundity.
Also Read: ‘Saral Pension Yojana’ can start from April 1, know how you will benefit
Investment declaration form
Investments accumulate the declaration at the beginning of the financial year. Employees give investment declaration to their employer. You do not have to submit proof at the time of declaration, but you are required to submit proof in the declaration only in January.
What to submit in investment proof
One can submit the documents of investment made under Section 80C of Income Tax. Because 80C gets tax rebate of up to 1.5 lakh rupees.
What is investment proof
– Receipt of Life Insurance Policy Premium
– Proof of ULIP Premium
– Proof of Investment in Equity Linked Savings Scheme (ELSS)
– Rashid of Investment in PPF
– National Savings Certificate (NSC)
– Repayment on Principal of Home Loan
– Two Children Tuition fees up to
– Tax saving fixed deposit amount
– Contribution to NPS
– Investment in Sukanya Samriddhi Yojana
– Health insurance premium rebate
Investment declaration and investment proofs
In investment declaration, you tell about the possible investment. Your plan to take tax saving instrument in the new financial year is called investment declaration. Whereas, in the investment proof, there are tax saving instruments for the year. By giving proof of investment or insurance, you give proof of the investment of the year.
Tax saving investment
Under Section 80C of Income Tax, tax is waived on investment in some government schemes. These include investments in schemes like Public Provident Fund (PPF), National Pension Scheme (NPS), Sukanya Samriddhi Yojana (SSY), Unit Linked Investment Plan (ULIP), Tax Saving FD and National Savings Certificate (NSC).
Under Section 80D of Income Tax, you can get tax rebate on medical expenses. These include discounts on medical expenses of self, spouse and parents. Under Section 80G, donations made to a charitable institution get tax exemption.
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