Are you scrambling to save income tax as FY25 draws to a close? With the March 31 advance tax deadline approaching, this guide will help you stay stress-free. Missing this deadline could result in higher tax deductions, so act now!
How to save income tax?
Submit your investment proof to your employer by March 31, 2025, to save tax This ensures lower tax deductions in your Form-16. This is particularly important for people under the old tax regime. Many companies request investment proof by January, but if you missed it, you still have time until the financial year ends. Submitting after this deadline will not help in reducing TDS deductions.
Why submitting investment proof is important?
- Opportunity to Save Tax
Under the Income Tax Act, exemptions like Sections 80C, 80D, and 80G apply only when proof is submitted on time.
- Prevent Excess TDS Deductions
Failure to submit proofs can lead to higher TDS deductions, affecting your monthly cash flow.
- Ease During ITR Filing
Submitting proofs on time ensures a hassle-free tax return filing process.
Investment Proof: Documents required
- Section 80C
- PPF passbook
- ELSS statement
- LIC policy receipt
- Children’s tuition fee receipt
- Home loan principal receipt
- Section 80D
- Health insurance premium receipt
- Section 80G
- House Rent Allowance (HRA)
- Rent receipt
- Landlord’s PAN (if rent exceeds Rs 1 lakh)
- Interest on Home Loan
- Certificate from the lender
Investment Proof: Steps to submit
- Organize Your Documents
Arrange all proofs according to their categories.
- Upload to HR Portal
Many companies have an online submission process through HR portals.
- Submit Physical Copies
If your employer doesn’t use digital systems, submit hard copies to HR.
- Adhere to Deadlines
Follow the deadline set by your company.
What if proof is not submitted?
- Higher TDS Deductions
Without proof, your employer will deduct more TDS from your salary.
- Delayed Refunds
Excess deductions may lead to prolonged waits for refunds during ITR filing.
- Disrupted Financial Planning
Lack of planning and missed submissions can adversely impact your finances.
Tax saving tips
- Plan deposits early.
- Choose tax-saving instruments like PPF, ELSS, and health insurance.
- Keep your investment documents well-organized.
- Stay updated on your employer’s submission deadlines.
Submitting investment proof is a vital step in securing your financial health and saving taxes. Ensure all documents are prepared and submitted before the March 31 deadline to avoid unnecessary deductions and delays.
