If you’re a salaried employee who has invested in tax-saving schemes, it’s important to submit your proof to your company’s finance department as soon as possible, especially if you’ve taken out a home loan. Many companies have set a deadline of January 15 for employees to provide this documentation.
Why do companies require this proof?
Companies deduct TDS from employees’ salaries each month. At the start of the financial year, employees inform their employers about the tax-saving investments they plan to make. Based on this information, companies calculate the appropriate tax deductions.
In January, companies request proof of these investments to determine the employee’s tax liability for the entire financial year. They then adjust the salary deductions accordingly and ensure the tax is submitted to the Income Tax Department by March 31.
What if you miss the deadline for submitting proof?
If you fail to provide proof of your tax-saving investments by your company’s deadline, the government has extended the deadline for filing belated income tax returns (ITR) from December 31 to January 15. You can file your ITR by January 15, 2025, but there may be late fees involved. Additionally, if you’ve already filed your ITR and discover any errors, you can submit a revised return by January 15.
