Investment Declaration Form

Consider yourself as a salaried employee ( although you might be one already)

As soon as the new financial year begins, employers start requesting for investment declaration from employees. On the basis of their declaration, their projected tax-go-out for the year is calculated and their monthly pay is adjusted.

If you declare your tax saving investments, your in-hand salary will be higher, as it will include the effect of deductions. You can make actual investments anytime during the year. But how do you do that?

Till date, there had been no standard reporting format or template available for furnishing the details of investment or expenditure proofs. As of now, to claim tax benefits or rebate, all you had to do is just mention the sum claimed under exempt allowances.

But with effect from 1st June 2016 to claim income tax deductions, You need to submit new Form 12BB to your employer. It is also been made mandatory to submit documentary evidence of your investments/expenditures.

At this stage, you are only asked about your intent to save taxes. Your actual tax savings may turn out to be different. A final adjustment based on actual proof submission is made sometime between January and March of next year.

The initial few weeks of a financial year are important if you want to be diligent about taxes. Planning in advance will help spread your investments through the year. And put you in top gear for making the most of your tax savings.

Chiranjibi Chapagain

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