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Four Deductions Employees Can’t Claim Without Evidence to Their Office | taxworry.com

Updated 5 Years Ago

Four Deductions Employees Can’t Claim Without Evidence To Their Office | Taxworry.com
Slowly and steadily the income tax department is delegating the powers to assess the income and allowing the deduction, exemption at the first point. In case of employees whose principal income is from salary, the finance officer or Drawing & Disbursing Officer (DDO) are now legally empowered to seek evidence or particulars of deduction or exemption claim by an employee including a claim for set-off of loss. So what I mean is that you can not prevent TDS by claiming these deduction  /exemptions without first submitting evidence and particulars to your DDO/Finance Manager in charge of salary disbursement. What are the Claims? The claims by an employee about  certain deductions, exemptions or allowances or set-off of certain loss as per the provisions of the Act are House Rent Allowance. Leave travel concession or assistance. Deduction of interest under the head "Income from house property". Deduction under Chapter VI-A. Section 192(2D) inserted from 01/06/2015 provides that person responsible for paying (DDOs) shall obtain from the assessee evidence or proof or particular of claims. (2D) The person responsible for making the payment referred to in sub-section (1) shall, for the purposes of estimating income of the assessee or computing tax deductible under sub-section (1), obtain from the assessee the evidence or proof or particulars of prescribed claims (including claim for set-off of loss) under the provisions of the Act in such form and manner as may be prescribed CBDT notified the  Rule 26C and published the Form 12BB for the aforesaid purpose. Here is the Rule 26C which is quite clear about the type of evidence or particulars Furnishing of evidence of claims by employee for deduction of tax under section 192. 26C. (1) The assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192, the evidence or the particulars of the claims referred to in sub-rule (2), in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source. (2) The assessee shall furnish the evidence or the particulars specified in column (3), of the Table below, of the claim specified in the corresponding entry in column (2) of the said Table:— Table Sl. No Nature of claims Evidence or particulars (1) (2) (3) 1. House Rent Allowance. Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh. 2. Leave travel concession or assistance. Evidence of expenditure. 3. Deduction of interest under the head "Income from house property". Name, address and permanent account number of the lender. 4. Deduction under Chapter VI-A. Evidence of investment or expenditure.] It means that every DDO or Finance Manager who is responsible for payment of salary is accountable for TDS and therefore legally required to obtain the evidence described above for his satisfaction about the allowance of those claim of deductions. If employees do not submit such evidence, DDOs are bound to deduct the tax from salary. Can I claim in return those deductions even if I fail to submit evidence to DDO? Offcourse. Even if DDO deduct the tax by not allowing the deduction, a taxpayer can always claim the deduction in his/her return and claim the excess TDS as a refund. When tax department raises the query , submit evidence related to the claim to the IT authorities.
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