Investment Proof Submission
The last date for your investment proof submissions generally depends on your organization/company, but mostly they expect you to submit the proof by March 10. Employers even start asking for it from January itself as they have to deduct tax at source based on tax calculations as per your investments from January.
However, this year’s condition is different as the offices and workplaces are closed due to the coronavirus pandemic. This can be the reason that many of us have forgotten or not able to submit our investment proof. And if you are one among such – you don’t need to worry! This blog will help you with it.
Here it’s important to know what happens when you are not able to submit your investment proof?
The answer to this is an increased TDS will be deducted from your salary in March month.
TDS deduction comes under Section 192 of the Indian Income-tax Act, 1961. According to which an employer is obligated to deduct some amount from the employee’s salary at the time of disbursement. This deduction is based on your income & the proposed investments which you need to submit in March.
Every financial year you need to refresh the investment declaration which you have made last year. You can make changes in your tax-saving investments from those which you have declared earlier. However, the TDS deduction from your taxable income will only be based on the investment proof submitted. Hence, it becomes important to declare your investment proof to your employer on time.
However, one is totally free to invest. But, one should never ignore the tax-saving investments. As investing in a tax-saving portfolio always yields more profitable results- which is returns plus tax saving.
In case, you fail to submit your investment documents on time – then this is going to impact the salary of your March month. And this will surely be lower than your previous salary.
When you submit the actual proof of your investments, the accounts department of your company will compute your payable taxes based on it.
Why You Don’t Need to Worry!
Regardless of whether the finding of your TDS sum transpires, you can still claim back refunds when you submit your investment proof. However, it is important to get it done when you are filing your income tax returns.