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Do You Need to Submit Investment Proofs? A Guide for Salaried Taxpayers

Feb 2

2 min read

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Navigating tax season as a salaried employee can feel overwhelming, but don’t worry—we’re here to help! If you’re wondering whether you need to submit investment proofs to your employer, you’re not alone. Let’s break it down in simple terms.


Why Submitting Investment Proofs Matters


For the financial year 2024-25, employers are asking salaried employees to submit proof of tax-saving investments and expenses. This is crucial for lowering your tax liability and avoiding unnecessary deductions from your salary. Until these documents are submitted, your employer may deduct the full tax amount at source (TDS), ignoring any tax-saving investments.


Who Needs to Submit Investment Proofs?


Employees under the old tax regime must submit investment proofs to claim exemptions and deductions. On the other hand, if you’re under the new tax regime, you’re off the hook—most exemptions and deductions don’t apply.


The Old Tax Regime


Under the Income Tax Act, 1961, the old tax regime offers several exemptions and deductions to help reduce your gross taxable income. If you chose this regime at the start of the financial year, submitting investment proofs is mandatory. Common deductions include:


  • HRA Exemption: Submit rent receipts or a rent agreement. If your annual rent exceeds ₹1 lakh, you’ll also need your landlord’s PAN details.

  • Section 80C Deductions: Reduce your gross income by up to ₹1.5 lakh with investments like PPF, EPF, NPS, ELSS mutual funds, life insurance premiums, children’s tuition fees, and housing loan repayments.

  • Section 80D Deductions: Claim up to ₹1 lakh for health insurance premiums covering yourself and your parents.

  • Section 24B Deductions: Get up to ₹2 lakh off your taxable income for housing loan interest payments.

  • Additional NPS Deduction: Beyond the Section 80C limit, you can claim an extra ₹50,000 for NPS contributions.

The New Tax Regime


The new tax regime simplifies things by offering just two deductions:


  1. A standard deduction of ₹75,000 from salary or pension income.

  2. A deduction of up to 14% of basic salary for employer contributions to the NPS.

Good news: You don’t need to submit any proofs to claim these.

What If You Change Your Mind About the Tax Regime?

While you can switch between tax regimes during Income Tax Return (ITR) filing, it’s not as straightforward for TDS. Most employers prefer sticking to the regime you selected at the start of the year due to administrative challenges. That said, filing your returns by July 31, 2025, is essential to keep your options open.

Why Early Submission Is Better

Although most employees have until March to submit their tax-saving documentation, submitting early can save you from higher TDS deductions now. Plus, it gives you peace of mind and allows your employer to make adjustments to your salary well in advance.


Tips for Hassle-Free Tax Filing


  1. Keep all required documents handy, including rent receipts, health insurance policies, and investment proofs.

  2. Check with your employer about the deadline for submitting proofs.

  3. Consider professional assistance for filing your taxes accurately.


Need Help With Tax Compliance?


As an auditing firm, we specialize in helping salaried employees and businesses navigate tax compliance. From income tax return filing to NPS deductions and HRA exemptions, we’re here to make your tax season stress-free.



Man and woman in an office discussing investment proofs. Papers show HRA, 80C, NPS, housing loan. Clocks and calendars are visible.