What Happens When You Don’t Submit Documents?
TDS is enclosed under Section 192 of the Income Tax Act. Therefore, the employer is obligated to withhold taxes during the payment of salaries based on the investment declaration submitted by an employee, usually before March 10, Organization calculates taxes on the basis of salary to the employees. However, firstly the employee must furnish documentary evidence of the investment declarations made earlier in the year. If the employee is not able to furnish the actual proof, the employer will not consider such deductions while calculating his tax liability, resulting in more deduction of TDS & hence lower in-hand salary for march month.
How to Avoid It?
Even if your TDS gets deducted, you can still get a refund by disclosing your investments while filing your ITR. The deductions in respect to HRA (House Rent Allowance), or under Section 80C (Insurance Premiums, Tuition fee of the child, housing loan repayment, investments in instruments like ELSS), can be claimed directly while filing ITR.
What Will be Lost?
Not all deductions can, however, be claimed while filing ITR. For example, Tax exemptions in respect to LTA and cannot be claimed separately while filing ITR. These allowances must be claimed only via your employer. However, it is advisable to submit all the documents to your employer timely, to avoid any excess deductions of taxes.