Income TAX Declaration for Employees

Income TAX Declaration for Employees

According to income tax guidelines income tax is deducted annually for the financial year commencing from 1st April and ending 31st march of financial year. The responsibility of the employer has been affixed by the Income tax Department to deduct income tax from the salary of employees monthly on proportionate basis and deposit before the due date ( Monthly) as prescribed and report same to Income tax Department (quarterly as well as annually). The aggregate tax calculated on the estimated projected income will be deducted proportionately in 12 months, thus the assessment needs to be done on at the start of the year.

Therefore, all employees are requested to declare their proposed investments for financial year 2016–17, proportionate income tax could be calculated & systematic deducted from the salary can be started early.


For eg: It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. There were various anomaly as well as ambiguity in relation to declaration as well as the submission of details and supporting so CBDT issued Form No 12BB so as to standardize same.



PARTICULARS

MAX BENEFIT PERMISSIBLE (RS.)


REMARKS


Life Insurance Premium

Maximum

amount eligible

for Deduction

under section

80C & 80CCC

Categories is

Rs.1,50,000/-


Self , Spouse & Children only

Copy of Premium

Payment Receipt


Public Provident Fund (PPF)


Self , Spouse & Children only,

Submit PPF challan or PPF

passbook front page with entries


Copy of Payment

Receipt / Passbook


Provident Fund (PF)


Deducted from salary

EPF No If any To be

mentioned


Pension Fund Contribution


Self only

Copy of Premium

Payment Receipt


National Savings Certificate

(NSC)



Self only

Copy of NSS Certificate/s