Your company’s accounts department has also emailed to submit income-tax saving proof? Yes, it is time for you to collect all the tax-saving documents. Since April last year, the tax on salary has been calculated by the department on the basis of the investment declaration given by you earlier.
Taxes are deducted at source (TDS) under section 192 of the Income Tax Act. This tax is calculated by your company at the time of payment of salary. The accounts department calculates the tax based on the actual investment made by you only after the tax savings documents are submitted. For this, documents of the investment declaration you had given earlier, will have to be given. The dates for submitting such documents vary, but in most institutions, they are submitted by March 10, 2019. However, companies start asking to submit investment documents from January itself so that TDS can be calculated by tax calculation based on your actual investment from January.
In addition to submitting these documents, the employees will also be able to finalize their remaining tax collections in the current financial year (2018-19). If there is any tax left then this tax will be deducted in the last 3 months of the financial year. So do not wait till March because then you will not be able to finalize tax and you may have to pay big tax this month. There is no need to send these documents to the Income Tax Department while filing tax. Instead, the company has to take these documents from the employees so that tax can be deducted.
Many times, it happens that more tax is deducted by the company before giving tax saving investment / expenditure and it cannot be adjusted in later months. In such a situation, the additional TDS will be shown in Form 16 and you can claim the Income Tax Department to refund it by filling in the appropriate income tax return.
Investment under section 80C:
When it comes to investment, mutual funds (MFs) have to submit equity linked savings scheme (ELSS), ELSS fund statement for life insurance and receipt of premium paid. For Public Provident Fund (PPF), if it is maintained with a bank or post office, then a photocopy of the passbook will be submitted, where all the transactions and account details will remain. If you have done Sukanya Samriddhi Scheme and Fixed Deposit for 5 years, then you have to submit the deposit receipt or the certificate from the bank to the company. If you want to show tuition fees as tax saving proof, then you have to submit a photocopy of the school receipt and the school receipt with the signature of the receiver.
If you have taken a loan between 01.04.2016 to 31.03.2017, first time home buyers will get tax exemption under Section 80EE and this rebate can be claimed through home loan interest. Under Section 24 of the Income Tax, this exemption is more than the limit of Rs 2 lakh. You will have to submit a hard copy of all related documents and do so every year until the loan is repaid.
How to get refund if TDS is deducted on FD:
If your salary income is not taxable, or if there is no tax on your salary, even if your bank deducts tax on the interest of your fixed deposit (FD), then you also get this amount of TDS back. Can. There are two ways to do this
Method No. 1. Please mention this thing in the IT return. The Income Tax Department will automatically calculate your tax liability. If there is no tax, then this amount will be added to your bank account.
Method No. 2. Fill in Form 15G and submit it to your bank. Tell your bank that my salary is not taxable, so return the deducted TDS