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How are tax deduction (80c) supporting documents submitted?

AP (Trainee) (83 Points)

17 December 2012

Salaried employees (like in our organisation) usually declare their entire tax liability around the end of financial year and on the basis of that the employer, with the help of chartered accountants, prepares form no 16 and distributes. At this step, each employee is asked to submit copies of documents to avail tax deduction under 80C. Suppose for some reason all documents are not with me so I am not able to claim 80C deductions at that time and pay excess tax (through TDS). By the time when filing e-return I have received the documents and I show excess tax paid in the ITR-1 but where am I supposed to submit the copies of documents showing amounts for deduction u/s 80C? How does the ITax dept know whether an assessee is cheating or not?

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5 Replies

Abhisek Rungta (PRACTISING CHARTERED ACCOUNTANT) (234 Points)
Replied 17 December 2012

The excess TDS Deducted will be paid as refund with interest to the Person . In case of companies , the employer should have details for deduction of TDS and if excess TDS Deducted , they can show to the Dept that the Documents where received late.But the supporting paper are to be kept by the employer.

Normally the income tax department asks for the document of 80 C in Scrutiny u/s 143

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CA CS Chirag (Practicing CA) (834 Points)
Replied 17 December 2012

no need to submit any documents while filing return, department will ask for documents while scrutinising the case

Ashish (Student) (269 Points)
Replied 17 December 2012

Its necessary for every assesse to file his return showing the true scenario. Its not compulsory to possess the documents at the time of filing return but it should be shown when IT Department scrutinizes the case.

satish kumar voleti (A.C.A., (ICWAI)) (1686 Points)
Replied 17 December 2012

Generally companies take the supporting vouchers, bills etc during the 1st qrt, and also request to provide the same if they have not provided earlier by feb month of last qrt of financial year so that if excess TDS has made due to insufficient information can be adjusted in the last qtr.. so set a policy for your company so that this problem of excess deduction of TDS can be solved.

But make sure that all the vouchers, bills are provided to you and keep them with you as evidence.

Vouchers bad bills such as.

1. Rent paid receipts .

2. LIC receipts.

3. Mutual fund receipts if any.

4. School fees & Tution receipts.

5. Repayment of Housing loan receipts.

any other information provided by the employee...

AP (Trainee) (83 Points)
Replied 17 December 2012

Thanks for all the responses. One thing came to my mind while wondering how does ITax dept check if the assessee is cheating while claiming 80C deductions is that now a days in all high amount transactions which can lead to 80C deductions, we are asked to submit PAN card copy. Probably they can track all such transactions using PAN and check themselves whether the assessee is cheating or not. Do other agree?

Also probably there is some misunderstanding among common people regarding summon served to some assessee from Itax officials. Immediately others start thinking that the person must have done something illegal and is going to be punished. So this becomes a stigma. I may be wrong but it seems to me merely indicative of the fact that IT dept is unclear about deductions claims made in the IT return. So they need clarifications. (If there were some method to submit documents, or they could verify using PAN record perhaps this problem would have not arisen). I am sure for this Fin year I going to be served a notice (as mentioned u/s 143) since I am likely to pay registration fee+stamp duty for purchase of a flat and I will claim huge deduction while submitting return. (Right now I am unable to provide any document to my employer (state govt.) so excess TDS will be deducted in the last quarter). Please give your opinions whether I am correct or not. Thanks for sharing your advices.