Submitting proofs of investments to the employer

Ask the Community Payroll
1

Hi,

  1. Why submit proofs of investments to the employer? Is it important ?
  2. What happens if employee misses out on the proof submission to employer?

Please advise.

Thanks.

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2

Hi Anushri,

  1. Yes, it is important. At the time of any scrutiny either from auditor or from Income tax department employer will be answerable.
  2. If an employee missed to submit the proof then accordingly income tax will be calculated on employee earnings.

Hope you have got your query answered.

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3

Hi @Anushree

Every declaration that you made in the beginning of the FY is a promise you made to the employer and the IT dept. that you are making investments in the right manner and based on which IT exemptions are sought.

And at the end of the FY it’s your due responsibility to produce bills for the same as a proof of investment declaration that you made.

What happens, if you don’t submit, bills?

Employer will consider that you didn’t make any investment and the TDS will be recomputed and the balance amount will be deducted from your salary.

Is it okay, to not submit bills to employer but produce it with personal CA and claim later?

Yes, but employer will be deducting the tax and remitting it to IT dept. which is his sole responsibility, but later you can file the ITR and get the refund.

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4

Dear GreytHR,

Pls provide me with the basics of contribution to PF and Withdrawal of PF by Foreign Nationals working in India as detailed below:

  • What is the definiton of Salary for the purpose of contribution
  • impact of Bonus on PF contribution
  • EPF & EPS contribution & limitation to EPS contribution with examples
  • Withdrawal of EPF & EPS if the employee resigns and leaves for good with no intention of returning back
  • how long employee need to maintain bank account, email ID & Mobile No ???
  • How do we arrive at CTC, GROSS, EPF & ESP contribution if compensation is as follows
    CTC Euros 3000 & Bonus Euros 1500. If there are some reimbursements of Travel say for Euros 200.
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