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:
Also Read: Income Tax Slabs For FY 2022-23
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