Missing out on applicable investments/expenses without knowing its impact is a common mistake. For example, details of landlord (PAN, Address) not provided for rent paid in excess of Rs1 lakhs per annum will force the employer not consider the deduction for HRA, or if you have missed out school fees of your children and the other 80C qualifying amount is less than Rs1.50 lakhs.
But point to note is, you can still claim those that you miss out while filing the ITR and claim refund, if any.
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How can employers verify supporting documents submitted by the employees?
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This question is not clear – I am assuming that you are asking the process in which employer verifies supporting documents.
If that is the case, the employer has to ensure that the supporting documents provide clear details of the amounts, the dates of investments (that it relates the relevant FY), the details of other party to whom payments were made by the employee (like landlord name, PAN, address for Rent paid > Rs1 lakh p.a.), etc.
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Why is tax declaration important?
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To ensure that the TDS is properly computed and deducted by the employer!
Else, higher tax maybe deducted and you will have to wait well after the year end to claim the refund by filing the ITR, which is normally around 31 July.
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What are the forms/ documents required to file ITR?
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Hi Sir, As per our company policy, Employees are claiming the amount which they spent on Further Education, Is it should be Taxable? This is extra benefit providing from company not included in Salary
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Mediclaim for Self/ Spouse/ Children- Max INR 25,000 / 50,000 for senior citizen + Additional 25000/50000 in case paid on behalf of parents/for senior citizen. Medical Bills for health checkup up to INR 5000.
Does the above pertain to only mediclaim (Premium receipts) or can the employee submit medical bills upto Rs 25,000 ?
@CAAPFIT Sir if you can help to answer this query?
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@Prabha
Mainly the Form 16 and Form 16A issued by the tax deductor for straightforward cases (involving just salaries, interest, dividends etc).
Also, all of this information is also available in Form 26AS, the Annual Information Statement (AIS) and Taxpayers Information Statement (TIS) which are available on the Taxpayers page (PAN) on the Income Tax portal.
If the taxpayer has additional types of income, then your tax expert/CA will verify more details beyond the above forms, including your bank account statement, Loan statement, shares trading reports received from your broker, asset transfer documentation (for capital gains on properties), any business/profession income details and other income details as well as various investment/deduction details.
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Hi Sir One more question, If employee is already declared HRA and he is also paying Pre EMI for house which is still under construction
Can you he show both HRA and Pre EMI thing in Declaration? if So please let me know under which section he can declare it? Thanks
Regards
Ramanath Setty
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Form 12BB is the investment/expenditure declaration form submitted by employee to employer.
Thanks and Regards,
Finance Team
DeFT SEMICONDUCTORS – www.deftsemi.com
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It is possible that he is renting a house in one city where he works and has a home loan in another city/town. If he is actually paying Rent, he is eligible to claim the same. In addition he can claim interest on loan taken for self occupied house property, if the construction is completed.
For Pre-EMI interest deductions, there is a separate provision for this, where you can claim it equally over the 5 years after completion of construction.
Pls consult your CA/tax expert by giving him the full details of the loan and construction.
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@CAAPFIT, Sir Pls help me with this question
Regards
Ramanath Setty
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No medical bills in addition to the permitted mediclaim limit - under section 80D. There are other provisions under section 80 DDB which allow deductions on specific illnesses (neurological, malignant cancers etc) - you can get more info on the income tax portal.
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answered as above. I think you missed it due to other questions that popped up in between.
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sir please help answering this question
Hi Sir, As per our company policy, Employees are claiming the amount which they spent on Further Education, Is it should be Taxable? This is extra benefit providing from company not included in Salary
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This comes under exempt perquisites, for training and further education of the employee incurred by the employer, which are treated as essential requirements of the employment for the benefit of the employer (improving skillsets of the employees), as long as the policy is to provide the same across the board and not for only a few selected employees.
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Thank you so much Mr. Agnel ( especially for extending to address so many user queries after the scheduled session time) You are awesome!
It was very insightful, informative, and knowledgeable for all. It was indeed a great session with an abundance of knowledge on Tax declaration and filing. Thank you for creating an amazing experience for our members.
Community members, in case there are any unanswered questions, please post them in the thread or in the community directly, and our experts will guide you with your doubts.
We are thankful to each and every one who attended, liked, and viewed the session.
So, we are now coming to a close to this edition of LIVE discussion with the expert on the greytHR community. This thread will always be available for reference.
Closing now. See you in the next LIVE soon!
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You are most welcome. You can ask your participants to send in their queries to my contact email id or number which is available with you.
Best regards
CA Agnel Pereira
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