Income Tax Investment Proofs – A Quick Checklist

By Kishore Sabareeshan | March 12, 2019

Want to have a handy checklist to help you sail through investment proofs this tax season? Your wish is our command!

Income Tax Investment Proofs – A Quick Checklist

The first step towards reaping income tax benefits is to get your investment proofs in order. Here’s a quick checklist of common queries and information to give you clarity and peace of mind.

Additional Reading: Save Tax With ELSS

When Do I Need To Submit Income Tax Proofs?

Typically, you need to declare investments at the beginning of any financial year. However, when the financial year gets to the last two months, i.e, January and February, you need to submit actual investment proofs so that your company can maintain them for income tax audits. Ensure you have your proofs good and ready by March 31st, 2019.

Seems Drab. Do I Really Need To Do This? What If I Don’t?

Though we understand that any tax-related work is ‘taxing’, it does offer some valuable benefits. Let’s say you’ve declared investments at the beginning of the year but now refuse to submit your proofs. What will happen? Well, you’ll have to cough up all your pending income tax amount, because, without your proof, you can’t claim any tax benefits.

Additional Reading: How To Calculate Your Income Tax

A Checklist Of IT Investment Proofs

Though each individual’s checklist may differ depending on their declarations, here’s one to make sure you check whatever is relevant to you. Ready? Let’s go!

  • Your investment proofs are required for:
  • Claiming deductions under Section 80C (up to Rs. 1.5 lakhs)
  • Claiming deductions under Section 80CCD for NPS (up to Rs. 50,000)
  • Proof of your Health Insurance premium payment is required for you to claim tax benefits under Section 80D up to a limit of Rs. 50,000 (Rs. 60,000 for seniors)
  • Proof of payment of interest on the repayment of any educational loan is required in order to claim benefits under Section 80E (no limit here)

Additional Reading: 5 Uncommon Tax Deductions That Will Help You Save Big

  • Proof of any donations made can help you claim benefits under Section 80G
  • Rent receipts in order to claim HRA – under Section 10(13a)
  • Proof of medical expenses
  • To claim costs incurred towards a handicapped dependent – under Section 80DD
  • To claim expenses incurred in treated specific diseases – under Section 80DDB

Additional Reading: 6 Amazingly Simple Ways For Better Tax Planning

  • Proof that you’ve paid the interest on your Home Loan will enable you to claim tax deduction under Section 24B up to a limit of Rs. 2 lakhs.
  • Proof of relevant travel and accommodation bills in order to claim deductions under Section 10(5) as Leave Travel Allowance or LTA – Limit is usually fixed by your employer

A Few General Tips:

  • Don’t underestimate the power of educating yourself about tax deductible personal expenses. Once you know the mechanics, you can really optimise your savings
  • Stack your proofs regularly – Doesn’t matter if it’s just a small medical bill or a not-so-expensive travel ticket, stack ‘em up and you’ll be glad you did when tax season arrives
  • Don’t declare unrealistically – This one’s a no brainer; basically just keep it real when it comes to your tax declarations. You’d be better off declaring whatever you can submit proofs of, right?
  • Seek expert help if necessary – Let’s say you’re too busy to sit and line up your investment proofs. In such cases, it really helps that you hire an accountant to take care of all your tax errands for you
  • Donate to a cause that you care about – Donation is primarily all about giving, but it gives you a ‘thank you’ in the form of tax benefits. Of course, find a cause that you truly care about so that you’re not just donating for the sake of it but with all your heart.

All set to get your investment proofs in place? Great! Now, start planning your personal finances for the next financial year – you can start by checking your Credit Score and then explore some awesome offers on Personal Loans, Credit Cards and much more. Where, you ask? Right here, my friend.

 

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