It’s that time of the year when employers start sending reminders to submit your investment proofs. While they ask you to declare your tax-saving investments at the beginning of the year, they require you to submit the investment proofs to compute the tax deducted at source (TDS) and deduct it from your salary.
Here is all you should know about income tax investment proof submission:
Why Is It Important To Submit Income Tax Investment Proof?
The process of providing income tax investment proofs is a standard procedure followed by every organisation. Here is why it is important to provide proof of investment for income tax:
The employers require your income tax investment proofs to calculate your income tax and TDS to be deposited with the government. This TDS will be deducted from your salary.
You can claim deductions and exemptions using tax-saving investments only when proper evidence is provided to support the claim.
What Are The Points To Be Consider While Making Tax-Saving Investments?
Before you invest in any asset that qualifies for tax deductions, compute your income tax.
Check the tax amount that is already contributed and see if any further amount needs to be contributed for the financial year.
The Income Tax Act allows you to claim tax deductions and exemptions through various sections. Hence, you can also use other tax-saving investment options and not just focus on investments under Section 80C.
You can only invest up to ₹1,50,000 in a provident fund (PF) under Section 80C. Any investment in PF beyond this limit will not qualify for an income tax deduction.
While it is important to invest to reduce your tax burden, it is equally important to align these investments with your financial goals.
Also Read: Income Tax Slabs For FY 2022-23
List Of Income Tax Investment Proofs To Be Submitted
Here is a list of income tax investment proof submission documents:
| Tax-Saving Investment | Proof to be submitted | ||||
|---|---|---|---|---|---|
| Public Provident Fund (PPF) | "Copy of stamped PPF deposit receipt paid in the current financial year | or a copy of your passbook that clearly mentions the PPF account. " | |||
| ELSS Mutual Fund | "Copy of ELSS investment certificate which includes details like your name | date of investment | investment amount | etc." | |
| Life Insurance Policy | "Receipt of premiums paid towards life insurance for yourself | your spouse and/or children." | |||
| Tax-Saving FDs | Copy of the fixed deposit receipt | ||||
| HRA | "Monthly rent receipts and a copy of the landlord’s PAN Card if the rent amount is higher than ₹1 | 00 | 000." | ||
| Housing Loan | Interest certificate from the bank/NBFC with the total interest and principal paid/due for the financial year. | ||||
| "House property completion certificate from the builder | or self-declaration with the details of occupation." | ||||
| NSC | Copy of NSC Certificate in your name. | ||||
| Children’s Tuition Fees | "Copy of tuition fees receipt (paid to educational institutions) | and nature of payment (donation fees | sports fees | transport fees | etc.)" |
| Post Office Term Deposit Over 5 Years | Copy of term deposit receipt. | ||||
| Preventive Health Check-Ups Under Section 80D | Copy of insurance premium receipt paid during the financial year. | ||||
| Copy of the preventive health check-up bills. | |||||
| Medical Expenses Under Section 80DD (For Handicapped Dependent) | "Proof of amount paid towards medical treatment | training and rehabilitation of handicapped dependent | or towards any scheme of LIC | UTI or any other board-approved insurer for the maintenance of handicapped dependent." | |
| Form 10-1A | |||||
| Interest Paid For Education Loan | Copy of the bank certificate stating the principal amount and the interest paid. | ||||
| Deduction Under Section 80U | "Deduction of up to ₹75 | 000 for disability (₹1 | 25 | 000 for severe disability) can be claimed under this section. Investment proofs to be submitted are a medical certificate from any government hospital in the prescribed manner | and Form 10-1A issued by a competent medical authority. " |
| Donations Under Section 80G | Valid receipts of donations made. | ||||
Also Read: Income Tax Slabs For FY 2022-23
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