Tuesday, January 24, 2017

Investment Proof submission for Income Tax Assessment

Investment Proof submission for Income Tax Assessment

Hi, This is a yearly practise that we have to go through here in India. This is applicable for salaried employees whose Income Tax is deducted by the paying organization itself. 
Generally at the start of financial year (April here) you are asked to declare whatever future investments you are going to do in the current financial year. Then based on that and your current salary package, your monthly Income Tax outgo is calculated and accordingly deducted from your monthly salary. 
This goes on till three months before FY ending - Dec here. So in next month - Jan., we are asked to submit actual proofs for the declared investments etc. So we have to submit the actual proofs and based on that the actual tax for the year is calculated. Then the remaining tax is deducted in three installments in the remaining three months - Jan, Feb and March. 
Then by May you get Form 16 - your annual income tax report and based on that you can file for any applicable return. 

For investment proofs here's the check points for process here at my current company:
1. Get xeroxes/ prints of various documents and self-attest them. (sign on them.)
2. Print your actual declaration and sign it. 
3. The organization may have specific/ extra forms for each category - e.g. Form 12C is there for declaring income/loss from self owned property where you can declare interest amount as Lost income. Then there's a summary sheet for all Life Insurance Premia. You have to fill all Life Insurance Payments in it and sign it too. 
4. Also put your emp id, Name and telephone no. behind all the sheets so that they can be relocated in case they get separated from your other docs. 

That's it! Happy Tax Filing!

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