ITR Filing Deadline Missed?
Last Chance to Claim your Tax Refund

  • TrustedTrusted by 1 Million+ Users
  • User Rating4.9 Star User Rating
  • Secure2500 Cr. Taxes Saved Already
ITR Filing Deadline Missed?
linkedin
whatsapp
  1. Home
  3. Income Tax
  5. Income Tax Deductions
  7. How to save tax if you missed the income tax proof submission deadline?

How to Save Tax When You Miss the Income Tax Proof Submission Deadline

Updated on: 23 May, 2024 04:25 PM

If you are a salaried employee, it is high time that you submit your investment proofs to save yourself from being prey to higher TDS deductions by your employer. At the beginning of the financial year, employees are required to submit a declaration of the expected investments they will make during the year. Based on this information, the employer calculates and deducts the TDS from the salary. However, the TDS for March is based on the investment proofs submitted by the employee in the last quarter.

However, sometimes, we forget to submit our investment proofs by the given deadline due to a lack of awareness, a change of employment, or administrative errors. Missing the deadline can make you panic. But don’t worry; this article will help you understand “what to do in such a situation.”

Contents

What Happens if You Fail to Submit Investment Proofs by the Deadline?

Employers are obligated to deduct TDS (Tax Deducted at Source) from the employee’s salary. TDS is a system wherein employers are required to deduct tax at the source of income. Employers deduct TDS from the employee’s salary and deposit it with the government.

If you fail to submit your investment proofs by the deadline, your employer might deduct a higher TDS from your salary. This means you will have a lower salary remaining with yourself.

While the TDS deductions during the year are made on the basis of the investment declarations made at the beginning of the year, the TDS for March depends on the investment proofs you submitted.

The expenses made after March 31st are not eligible for any type of deduction in the current financial year. Therefore, it is important for employees to plan their expenses and investments well in advance and submit their investment proofs by the given deadline to maximize their take-home pay.

What is the Last Date for Submitting Investment Proofs?

Employers start asking their employees to submit proof of income in the last quarter, i.e., from January to March. Generally, the last date for submitting investment proofs is 31st March. However, the exact deadline for submitting the investment proofs varies from employer to employer. Therefore, you must check the last date with your employer to ensure you don’t miss the deadline.

What to do if You Miss the Investment Proof Submission Deadline?

Sometimes, we tend to miss the investment proof submission deadline. Missing this important deadline might make you panic. Even if you have missed the deadline, you still have the option to claim the overpaid tax directly while filing the ITR and providing the necessary documentary proof. So don’t worry, even if you have missed the deadline for proof submission.

However, it is important to note that while the majority of deductions can be claimed, there are certain deductions that cannot be claimed upon missing the proof submission deadline like LTA (Leave Travel Allowance).

What Proofs Can You Submit for Claiming Your Deductions?

As a salaried employee, you can submit various proofs along with your investment declaration to claim deductions. These proofs include:

  • Life Insurance Premium Receipts: You can provide the receipts of the annual premium paid for life insurance policies. However, it should be within the maximum limit allowed by the Income Tax Act.
  • Health Insurance Premium Receipts: You can submit the receipts of the health insurance premium paid for yourself, your children, spouse, or parents as per the maximum limits specified by the I-T Act.
  • Investment Statements: Include statements and receipts for investments made in ULIPs (Unit Linked Insurance Plans), ELSS (equity-linked savings Schemes) mutual funds, PPF (Public Provident Fund), NPS (National Pension Scheme) contributions, and annuity plans within the prescribed limits.
  • Rent Receipts: If you live in a rented house and receive HRA, you can provide monthly rent receipts along with the rent agreement as proof to claim the deduction under HRA. However, if the annual rent exceeds Rs.1,00,000, you also need to submit the PAN of the landlord. You can generate your rent receipts for free with the rent receipt generator tool.
  • Home Loan Interest Statement: Provide a statement indicating the home loan interest you paid. This can act as a document of proof for claiming your deduction for home loan interest.
  • Donation Receipts: To claim the deduction for donations under section 80G, you must submit the receipts of the donations made to eligible charitable institutions as per the Income Tax Act.
  • Tuition Fee Receipts: If you have paid any tuition fees for your children’s education, you should also submit the receipts for the payment made for children’s education that can be claimed as a deduction.

Additional Tax-Saving Investments

Are you looking to enhance your tax-saving investments? Apart from the popular tax-saving investments like PF and HRA, there are some additional options you can invest in to reduce your taxable income.

Here are some popular tax-saving investment avenues:

  • Term Life Insurance:
    The premium paid towards term insurance within a financial year is eligible for income deduction of up to Rs 1.5 lakh under Section 80C. Therefore, you can invest in a term insurance plan to save taxes.
  • National/New Pension Scheme (NPS):
    Over and above your section 80C investment, you can also invest in NPS (national pension scheme), which helps you plan your retirement years. A maximum deduction of Rs.50,000 can be availed of under this section. You can invest a sum at different intervals in the NPS scheme and get monthly payouts post-retirement. Upon reaching 60 years of age, you can withdraw 60% of the corpus, while the remaining 40% must be used to purchase an annuity plan.
  • Unit Linked Insurance Plans (ULIPs):
    ULIPs combine investment and insurance components, with a portion of your investment allocated to insurance and the majority towards investments. Premiums paid towards the insurance plan are eligible for tax deductions.
  • Employee Provident Fund (EPF):
    Contributions made towards the Employee Provident Fund (EPF) qualify for tax deduction under Section 80C, up to Rs 1,50,000. The EPF interest rate is also tax-free.
  • Health Insurance Plans:
    Purchasing a health insurance plan allows you to claim a deduction of up to Rs 25,000 on medical insurance premiums. Besides tax savings, this provides financial protection for you and your family during medical emergencies.
  • Endowment Plans:
    Endowment plans offer insurance, investment, and tax benefits. Your investment in the endowment plan qualifies for tax deduction.

While it is the best idea to submit your investment proofs within the deadline specified by your employer, it is noteworthy that even if you miss the deadline, you can still claim most of the deductions and exemptions (except a few) at the time of ITR filing.

If you still have any tax-related queries or want to know about other tax-saving investment options, don’t hesitate to reach out to our tax experts, who can help make your tax journey smooth. Get Tax Advisory Services Now!

Frequently Asked Questions

Q- Can I submit proof of income tax after the deadline?

Failing to submit your investment proof by the deadline can result in consequences, including your employer deducting Tax Deducted at Source (TDS) from your salary. TDS is the amount withheld by your employer and paid to the government as income tax on your behalf.

Q- What happens if you forget to submit investment proof to the employer?

If an employee doesn't furnish the required investment proofs within the given timeframe, the employer must deduct TDS at a higher rate, as required. The responsibility to deduct TDS isn't dependent on receiving investment proofs at a later date.

Q- What happens if Form 12BB is not submitted?

If you accidentally forget to provide Form 12BB to your employer, they won't be able to grant you the benefit of deductions and other tax exemptions as required. However, you can claim certain deductions and exemptions when filing your ITR.

Q- Can I claim LTA if not mentioned in Form 16?

If you can't claim the LTA within the year, you can carry it forward to the next year. However, it's important to note that the LTA exemption isn't included in the Income Tax Return filing. Your employer will certify your LTA claim and include it in Form 16.

Q- How much can I claim under HRA?

Your employer provides you with HRA. To calculate it, subtract 10% of your salary from the actual rent paid. For individuals residing in metro cities, the HRA is 50% of the basic salary. For those living in non-metro cities, it is 40% of the basic salary.

Trending Guides   New
CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.