If you Job If the annual income falls within the scope of the tax, proof of investment is required to be submitted. Companies submit all these documents to their employees from the end of December to March. But some employees are not aware of this and they are theirs Celery Cuts off. Before March the company asks you for a copy of the proof of investment made in the previous month so that it can check the investments you have made to save tax. Your company does this to save you the hassle of paying more or less tax later.
The company deducts tax from your salary every month, but before March, it has to submit the declaration of investment made by you to the income tax department. In doing so, the company and you will not face any difficulty. To reduce tax deductions, you should know the provisions of tax savings investment under various sections of the Income Tax Act. If you submit investment documents, then the tax deduction at source from your next three months salary i.e. TDS will be deducted equally less, otherwise it will be deducted more. Let’s learn all about it
Under Section 80C, Section 80CCC and Section 80CCD (1) together have an annual deduction limit of Rs 1.5 lakh. Section 80C includes deductions in respect of life insurance premiums, deferred annuities, contributions to provident funds, certain equity shares or debenture subscriptions, while deductions in respect of contributions to some pension funds in 80CCC and contributions to the National Pension System (NPS) Involved.
Exemption under 80C
- Payment of Premium for Life Insurance, Unit Linked Insurance Plan (ULIP)
- Payment in respect of non-commutable deferred annuity
- Deposit in Public Provident Fund (PPF).
- Investment in National Savings Certificates (NSC VIII Issue).
- Interest on NSC purchased in previous years.
- Payment of children’s tuition fees (tuition fees only)
- Investment in valid debentures / shares / mutual funds.
- Investment in Fixed Deposit (FD) for 5 years or more.
- Home loan repayment (principal amount only)
- Deposited in Sukanya Samrudhi account.
Section 80CCD (1B) includes deduction of up to Rs.50,000 in respect of voluntary contribution in NPS Tier 1 account. This deduction is more than the Rs 1.5 lakh limit of 80C.
Section 80D includes a deduction of up to Rs 25,000 for persons below 60 years of age in respect of premium paid for health insurance. This includes a deduction of up to Rs 5,000 for expenses incurred on preventive health checkups within the overall limit of Rs 25,000. The limit of 80D for senior citizens is Rs. 50,000, which includes medical expenses on senior citizen family / parents.
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