Mostly as the year ends or from January, employers begin to ask for tax saving investment proofs and it is advised that you submit them well on time so as to avoid paying higher TDS. Though in most cases you are required to complete the formality in this respect by the end of financial year i.e March 31st, some of the companies deduct TDS based on the actual investment proofs furnished by you with the beginning of the new year.
Here are some of the important tax saving investments or expenses proofs that you need to secure
1. Investments made u/s 80C: Any investment made towards insurance policy, PPF, 5-year tax saving fixed deposit scheme, ELSS mutual fund or Sukanya Samriddhi account which provided deductions under section 80C upto a limit of Rs. 1.5 lakh in a year needs to be provided to the employer with supporting documents.
2. Investment in NPS: If you have opted NPS scheme for pension accumulation on your own i.e outside the employer's scope you need to submit copy of PRAN or Permanent Retirement Account Number card along with the transaction statement of NPS.
3. Any investment on first home which provides tax benefits on interest on loan upto Rs. 50000 every year: Those of you who have made a big ticket purchase as your first home by securing loan in the FY 2016-17 can avail tax benefits under section 80EE which provides deduction of upto Rs. 50000 on home loan interest until the loan is paid back. So, to claim such benefit, you need to provide hard copies of all the supporting documents to your employer.
4. Housing loan principal repayment: From your home loan lending institution, you need to get the certificate for the principal amount paid back during April 2017 and March 2018. For the last months of the FY 18, the company can quote the provisional amount as the EMI for these months stands outstanding.
5. Claiming HRA: If you fall in the employee category which claims HRA exemption, you need to provide PAN card of your landlord mandatorily. Further you need to provide all the rent receipts till date, lease rent agreement copy and proof of rented premises being owned by the landlord.
However, in case the rent amount is less than or equal to Rs. 1 lakh in a financial year, you need to submit the PAN of the landlord.
6. Health insurance premium: To claim for investment made in health insurance policy you need to submit the statement for availing tax benefit u/s 80D. Remember to claim for the investment, premium should be paid either by cheque or through transfer of funds made online.
7. Tuition fees: For payment of fees, fees receipt carrying seal of the school is required along with the signatures of the receiver.