What is Investment Proof for investment declaration? Investment proof is the actual proof employees must submit to claim income tax deductions. There fixed rules laid down by the Department of Income Tax, India. These rules define how much income tax deduction the employee can get.
Likewise, people ask, can we declare investment while filing returns?
You can claim them during return filing, even though they don’t appear on your Form 16 since you could not intimate your employer. Or you may have made those investments after the last date given by the employer for proof submission (but you make investments for deductions before 31st March of the financial year).
Correspondingly, how do I submit a declaration?
How to fill a tax declaration form
- Login to your income tax account on the portal (www.incometaxindiaefiling.gov.in).
- In the tab named ‘Forms’, locate Form 12BB and download the same.
- Begin filling up the form by entering your basic details like your employee code, employee name, date of birth, etc.
How do investment declarations work?
Investment declaration has to be done in the beginning of a financial year. Your employer asks you to declare your tax-saving investments for the year to be able to deduct tax accordingly from your monthly salary. Investment declaration is important for you because it can lead to higher in-hand salary.
Investment Declaration is made on Form 12BB that has to be submitted at the end of the financial year. Please note that this form is NOT to be submitted to Income Tax Department, but has to be submitted to your employer. In the first part of Form 12BB, you can fill the details required to claim tax deduction on HRA.
Under the objective “Housing for all”, the government has now extended the interest deduction allowed for low-cost housing loans taken during the period between 1 April 2019 and 31 March 2020. Accordingly, a new Section 80EEA has been inserted to allow for an interest deduction from AY 2020-21 (FY 2019-20).
A deduction of Rs 1.5 lakh can be claimed under section 80C for the repayment of the principal of a home loan taken for the purchase or construction of a new house only. … Thus, you can claim deduction maximum of Rs 2 lakh for interest paid on home loan taken from friends, relatives.
Income tax department allows reducing of the taxable income of the taxpayer in case the taxpayer makes certain investments or eligible expenditures allowed under Chapter VI A. 80C allows deduction for investment made in PPF , EPF, LIC premium , Equity linked saving scheme, principal amount payment towards home loan, …
Your employer will go ahead and deduct the tax from your salary assuming that non-evidenced investments were not made. While filing your returns you can calculate your revised tax payable after considering the pending investment proofs. As a result, your Form 16 tax will be higher than the actual taxable payable.
Still, if you missed submitting your investment declaration form altogether, you can still file your IT returns with the government before the 31 July deadline. You can declare your investments in your ITR and claim a refund for the extra tax deducted. … Also, IT refunds are only processed once you file your ITR.
Yes, interest on home loan can be claimed under section 24 and 80EEA. Interest paid on home loan is eligible for deduction of Rs. 2 lakh if the house property is self occupied. In the case of rented property, full amount of interest paid is allowed as deduction.
Having a total income of up to Rs 50 lakh; Having income from following sources – salaries, one house property, income from other sources including agricultural income up to Rs 5,000; This form also applies to similar income of a different person say spouse or child, clubbed in the hands of the taxpayer.