Income Tax Proof: The deadline for submitting income tax investment proofs for the financial year 2024-25 is March 31. Employees are required to declare their investments at the start of the financial year, and they must provide documentation for any exemptions claimed. Timely submission is crucial to prevent higher tax rates.
Due by March 31
Generally, income tax investment proofs for the financial year 2024-25 are due by March 31, although this may differ among companies. Employers typically begin collecting these proofs between January and March. Providing accurate income tax investment proofs is essential for proper tax calculations and rebate claims. Employees must declare their intended investments in their IT Savings Declaration forms at the beginning of the financial year.
Finance teams will gather and verify documents
At the year’s end, finance teams will gather and verify these investment proofs. Depending on company policy, proof of investment may be submitted via email or in hard copy. It is important that the documents are clear and legible, containing all necessary details such as amounts, dates, and policy numbers.
Employees are required to submit documents
Throughout the fiscal year, employees are required to submit documentation of their investments. Common examples of acceptable proof of investment include:
– Receipts for life insurance premiums
– Public Provident Fund (PPF) passbook or statement
– National Savings Certificates (NSC)
– Tax-saving fixed deposits
– Contribution receipts for the National Pension Scheme (NPS)
– Proof of home loan interest payments
– Rent receipts for HRA claims
– Tuition fees for children
Employees can claim deductions
Failure to submit proof on time may result in employers deducting taxes at a higher rate, and you could forfeit any potential tax refund. This may also impact your overall tax calculation in certain situations. Employees can claim deductions under Sections 80C, 80D, 80G, and others by providing valid investment proofs.