The Employer issues Form 16 or the salary certificate to his employees for each of the financial year (April to March). Form 16 or the salary certificate provides details of the salary income of the employee along with the TDS (Tax deducted at Source) and net paid income.
Every salaried individual needs to declare all the investments eligible for the deduction, to his employer like Life insurance Premium, school fees of his children, contribution to PPF, Investment in bonds, donations, medical insurance, housing loan, etc. who is liable to deduct TDS before the due date of filing TDS Return. This enables the assessee to claim such benefits. And this will be applicable if the estimated salary exceeds the exemption limit.
But, if an asessee forget to declare some of the details of the investments eligible for deduction made by himÂ or didnâ€™t mentioned the details of pending receipts or forgot to provide full details of tax investments to the employers it will result into extra deduction to taxes by employer.
There is a misconception among the salaried individual that if they do not declare such investments to their employer before deducting TDS then they cannot claim for the same further in any circumstances.
In order to clear that misconception it is noted over here that an assessee can still claim the deductions / exemptions and can also claim the excess tax deducted by the employer as refund.Â Only thing required for the same is filing of income tax return and claim all the deductions/ exemptions while filing of Income Tax Return for the relevant financial year. It is important to keep records of tax investments with assessee, in case if the employer does not deduct taxes or deducts extra taxes, and then these certificates can be use for claiming refunds.
The deduction of TDS and obtaining Form 16 does not sufficient. Assessees are required to file their return of income before the due date i.e., 31st July, incorporating other income in addition to salary income, and pay taxes or claim refunds, whatever the case may be.
An assessee can either file their return manually or through online. But Taxmantra.com recommend you to file your income tax return online to avail the benefits like faster processing of Income Tax Return and quick issue of Tax refunds, if any.
Tax Returns for Financial Year 2011-12 has started. Request you to please visit Taxmantra.com or mail us Form16/ Salary Certificate and details of other income, at firstname.lastname@example.org. We would take it from there and will file your income tax return.