If you are employed and your annual salary is more than the tax exemption limit, then you will be aware that from January onwards, companies start deducting TDS from your salary. In such a situation, from December-January, HR and accounts section in different companies set a deadline for you to submit proof of investment.
This is done because the amount for which you show the investment is adjusted in the TDS deducted from your salary. It is worth mentioning that under the Income Tax Act, you are exempted from tax on investments up to a limit every year. Generally, you have to submit evidence related to ULIPs, life insurance, health insurance, ELSS mutual funds, PPF deposits, home loan, education loans, tuition fees, LTA and HRA for investment.
To get an exemption under Section 80 (C) of the Income Tax Act, you may have to produce proof of investment in these funds: LIC premium payment receipt Evidence of Investment in Public Provident Fund (PPF) Receipt on the principal amount of the home loan Evidence related to investment in National Saving Certificate (NSC) Tuition fees of up to two children Evidence of FD for more than five years Proof of contribution to NPS and Sukanya Samriddhi Yojana Receipt of payment of ULIP premium for his or her dependents Investment in mutual funds ELSS In this case, if you have not yet invested according to the earlier Declaration and do not want to cut the excess income tax, then you should invest and submit these documents as soon as possible.
If you do not do this, your in-hand salary may decrease after-tax deduction, this can cause many of your work to be stuck because once the tax is deducted, you will get Refund after filing your income tax return. This could swallow very many months.
The largest tax indirect tax or direct tax is Income Tax (IT) or Income Tax. According to the pre-determined rule every year, the government collects income tax from all the citizens and institutions of the country, whose income is taxable.
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