The submission of income tax investment proofs for the financial year 2024-25 is an essential process for accurate tax computations and rebate claims. While the general deadline is March 31, 2025, specific submission timelines may vary across organisations. Employers typically collect these proofs between January and March.
Importance of Investment Proof Submission
At the start of the financial year, employees declare their planned investments through IT Savings Declaration forms. Towards the year-end, finance teams verify these declarations against supporting documentation to compute final tax liabilities accurately.
Common Investment Proofs Required
Employees are required to provide documentation for investments made during the financial year. Typical examples of proofs include:
- Life Insurance Premium Receipts
- Public Provident Fund (PPF) Passbook/Statements
- National Savings Certificates (NSC)
- Tax-saving Fixed Deposits
- National Pension Scheme (NPS) Contribution Receipts
- Home Loan Interest Payment Proofs
- Rent Receipts for HRA Claims
- Tuition Fees for Children
Submission Formats and Guidelines
Investment proofs can be submitted via email or in hard copy, depending on the employer’s procedures. Documents should be:
- Readable and clear.
- Include all required details, such as amounts, dates, and policy numbers.
- Proof amounts must precisely match the declared deduction amounts.
For mutual fund statements, ensure the investor’s name, PAN, and closing portfolio value are included. Physical documents like bank fixed deposit (FD) certificates should have maturity details highlighted.
Consequences of Late Submission
Failure to submit proofs on time may result in the employer deducting taxes at a higher rate. Missing the deadline could also lead to forfeiting possible tax refunds, affecting overall tax computation.
Tax Savings Through Investment Deductions
By submitting legitimate investment proofs, employees can claim deductions under various sections of the Indian Income Tax Act:
Section 80C
Taxpayers can claim deductions of up to ₹1.5 lakh under Section 80C. Eligible investments include:
- Public Provident Fund (PPF)
- National Savings Certificate (NSC)
- Equity Linked Savings Scheme (ELSS)
Section 80CCD
An additional deduction of ₹50,000 is available for investments in the National Pension Scheme (NPS).
Section 80D
Health insurance premiums paid for oneself, one’s spouse, dependent children, or parents are eligible for deductions:
- Up to ₹25,000 for individuals below 60 years.
- Up to ₹50,000 for senior citizens (60 years and above).
Section 80G
Donations to specific relief funds and charitable organisations qualify for deductions under Section 80G.
Investment Proof Submission Checklist
- Ensure copies of all investment documents are available.
- Verify mutual fund statements include name, PAN, and closing portfolio value.
- Highlight maturity details on physical documents like bank FDs.
- Match declared deduction amounts to actual proof amounts.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
