A Guide To  Income Tax Proof Submission for FY 2023-24 (AY 2024-2025)

byDilip PrasadLast Updated: March 18, 2024

You can submit investment proof for FY 2023-24 (AY 2024-2025) till 31st March. However, all employers have different deadlines, so you must check with your HR team. In case you fail to submit your investment proof to your employer, they have the right to deduct TDS from your salary. You’d still have the option to incorporate eligible deductions directly while filing your ITR (income tax return). This will help you get a refund for any surplus TDS deducted by the employer due to the non-submission of investment proof.

Income Tax Proof Submission

As tax season approaches, employees are tasked with the crucial responsibility of submitting their income tax proof. This situation can cause unnecessary stress to some people. We’re here to save you from that because income tax proof submission doesn’t have to be stressful for anyone.

Let’s Understand Investment Declaration Before Anything 

Let’s set the right context for you before we jump onto investment proof submission. So in the sequence, first comes your investment declaration. 

In order to get your taxable income and deduct the right amount of monthly TDS from your salary, your employer will ask you to declare your investment at the start of every financial year. At the time of declaration, you are not required to submit the income tax proof.  

You must know that your employer deducts income tax from your salary on a monthly basis, which is known as TDS or tax deducted at source. This deducted amount is sent to the Income Tax Department. 

As an employee, you’re allowed to invest in certain instruments/schemes etc to encourage tax saving. These investments include life insurance policy, Public Provident Fund, mutual funds, fixed deposits, home loan, National Pension Scheme etc. Other than this, you are also entitled to claim LTA and HRA benefits. These investments are NOT TAXED by the government. 

Let’s Jump Onto Income Tax Proof Submission 

As an employee, you are required to submit income tax proof as supporting documents to validate your investment related information provided during the investment declaration period (as explained above). This process ensures the accuracy and legitimacy of the financial details disclosed.

This enables employers to deduct the correct amount of tax from the employee’s salary. On the other hand, self-employed individuals or those with other sources of income directly submit these proofs to the tax authorities while filing their tax returns. In certain cases, individuals may be selected for a tax audit, where they may be asked to give additional proof to verify the accuracy of their financial statements. This further reinforces the importance of submitting your investment proof. 

What if You Don’t Submit Income Tax Proof?

In case you fail to submit your investment proof to your employer, they have the right to deduct TDS from your salary. However, you still have the option to incorporate eligible deductions directly while filing your ITR (income tax return). This will help you get a refund for any surplus TDS deducted by the employer due to the non-submission of investment proof. 

Tips to Keep in Mind Before Submitting Your Investment Proof

  • You must maintain an annual proof submission file with all invoices, statements etc to make it easy for you to gather all documents. 
  • You must ensure that all your documents are self-attested and match your PAN records.
  • If you invest in mutual funds, your statement must include your name, PAN, and portfolio value.
  • Your proof amounts must precisely match your claimed amounts.
  • Keep a copy of all the documents you are submitting, so that you can furnish them wherever necessary.

Common Documents Required as Investment Proofs

  • House rent allowance: Monthly rent receipts, landlord’s PAN card, revenue stamps for cash payments above 1 lakh.
  • Housing loan: Interest certificate from the bank/financial institution
  • Tax-saving FDs: Copy of the deposit receipt
  • ELSS Mutual Fund: Copy of the investment certificate
  • Public Provident Fund: Stamped deposit receipt or passbook.
  • Life insurance policy: Contribution made towards life insurance
  • National savings certificate): Copy of NSC certificate in your name
  • Children’s tuition fee: Copy of tuition fees paid
  • Preventive health check-ups under section 80D: Copy of the premium receipt, bills
  • Medical expenses under section 80DD (for handicapped dependent): Proof of amount spent on medical treatment, training, and rehabilitation, Form 10-1A
  • Interest paid on higher education loan: Copy of the bank certificate mentioning the principal and interest amount paid
  • Donations under section 80G: Valid receipts for qualifying donations
Common Documents Required as Investment Proofs

Income Tax Saving Sections

Here is a list of savings options under various sections of the Income Tax Act, along with their respective limits:

Note: The limits and conditions mentioned above are based on the current tax laws in India and may be subject to change. It is advisable to consult a tax professional or refer to the latest tax regulations for accurate and up-to-date information.

How to Submit Investment Proof?

Most employers have their self-service portals where employees can upload their investment proof and get them verified. However, if your employer doesn’t provide any such platform, you may have to fill a form. You will be required to fill and submit Form 12BB to your employer to claim tax benefits or rebates on investments. Form 12BB is a statement of claims by an employee for deduction of tax.

Investment Proof Required in Old and New Tax Regimes

Under the old tax regime, taxpayers are required to submit proof for various deductions and exemptions claimed. 

On the other hand, the new tax regime simplifies the taxation process by offering lower tax rates but eliminating most deductions and exemptions. Taxpayers opting for the new regime are not required to submit any investment proof to their employer. However, it is important to retain the documents substantiating deductions/exemptions in case of any tax authority queries.

This blog highlights the stress-free approach to income tax proof submission for employees. It emphasizes the importance of timely submission to ensure accurate tax deductions. The investment proof submission process involves employees providing supporting documents to validate investment details for precise tax deductions. We hope this detailed yet simplified blog guides you through your journey of tax saving.

Disclaimer: Nothing on this blog constitutes investment advice, performance data or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. You should not use this blog to make financial decisions. We highly recommend you seek professional advice from someone who is authorised to provide investment advice.


What is investment proof submission?

Investment proof submission involves providing documents that declare yearly expenses on House Rent and planned investments for the financial year. These documents, known as proof of investment (POI), help in verifying one's investments.

How do I submit an investment declaration?

To submit an investment declaration, you need to complete Form 12BB, a self-declaration form. This form is submitted to your employer or accounts department for TDS (Tax Deducted at Source) purposes. It is essential for claiming tax benefits and is usually required at the beginning of the financial year.

What happens if I miss investment proof submission?

If you miss the investment proof submission deadline, you might experience increased TDS deduction from your March salary. However, there's still a remedy. During tax return filing, provide details of your tax-saving investments to claim returns and offset any potential financial impact.

Do we need to submit proof for the new regime?

Proof submission is not required for the new tax regime, which only allows standard deduction and deductions for contributions to the New Pension Scheme (NPS). Employees opting for the new regime do not need to submit any supporting documents to their employers.

What is tax declaration proof?

Tax declaration proof includes various documents such as a completion certificate for house property from the builder or a self-declaration from the employee. For specific investments like ELSS Mutual Fund, a copy of the investment certificate is required. Public Provident Fund (PPF) may require a stamped deposit receipt or a passbook showing PPF account details, while premiums paid towards a Life Insurance Policy serve as proof for that category.

Is 80C applicable in the new regime?

No, the new tax regime, unlike the old/existing one, does not allow many deductions and exclusions. If a taxpayer opts for the new regime's tax slab rates, deductions under Section 80C are not applicable.

Which tax regime is better for 15 lakhs?

For a salary above 15 lakhs, opting for the old tax regime and utilizing all available deductions and exemptions is the recommended strategy for tax savings.

Which tax regime is more suitable for an income of 20 lakhs?

If your income is Rs 20 lakhs, the new regime is advantageous if your tax deductions are below Rs 3,75,000. Otherwise, it's better to choose the old tax regime.

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