Every salaried employee must be familiar with the way they get reminders to submit investment proofs from their employers. Sometimes, you tend it postpone repeatedly, and finally end up missing the income tax proof submission deadline.
Consequently, it will not reflect on your Form 16. It is disappointing to keep paying hefty taxes even after doing your 80C investments and other savings. But you can still save on taxes and get a refund from the Income Tax Department in such cases.
The exemptions and deductions that your employer would have given in your Form 16, if the proofs were submitted, can be claimed at the time of e-filing. Let’s take a look at these Exemptions & Deductions that you can claim even though you are past the deadline of tax proof submission of your employer:
Claim HRA Exemption in your Return
Forgot to submit rent receipts to your employer on time? Don’t worry! If you live on rent and have made rent payments you can claim a deduction on House Rent Allowance at the time of filing your return. All you need is your rent receipts and the PAN of your landlord (where rent payments are more than Rs 1,00,000 per annum). Here is our HRA calculator you can use to find out how much HRA will be exempt from tax. This calculator is inbuilt into clear tax under the salary section. The exempt HRA is calculated and reduced from the Taxable Salary.
Want to claim HRA benefits and save tax?
An expert can recalculate your taxes and help you claim HRA Benefits.
Claim deductions under section 80C with no investments
Section 80C allows you to reduce Rs 1,50,000 from your taxable income. You can view the entire list of deductions allowed under section 80C here.
If you were not able to submit the details of your Section 80C deductions to your employer timely, you can claim them in your Income Tax Return. You can claim them during return filing, even though they don’t appear on your Form 16 since you could not intimate your employer. Or you may have made those investments after the last date given by the employer for proof submission (but you make investments for deductions before 31st March of the financial year).
Say you made some investments to claim Section 80C deduction – deposits to PPF, paid life insurance premium or purchased NSCs. You can easily claim them while filing your IT Return. Have the required details ready with you for e-filing and claim them. You will notice that not all of the listed deductions require investment. Some of these are expenses that you may have incurred during the financial year. So, if have not been able to fill up your cup with investments these expenses will come to your rescue. Claim them while filing your Return.
Claim these deductions under section 80C without making any additional investments
You can sum up all these expenses and add them to the deduction under Section 80C on ClearTax. Here is the list:
Your share of PF Contribution
This is the amount which gets deducted from your salary as your contribution in Employees Provident Fund Scheme or Recognized Provident Fund. This amount is 12% of your basic salary.
Children’s Tuition Fee Payment
Any tuition fees paid by you for the education of your children (maximum 2) is allowed under section 80C. This payment may have been made to any school, college, university or other educational institution situated within India for the purpose of full-time education of your children. It includes payments for play school, pre-nursery, and nursery.
Principal Repayments on Loan for purchase of House Property
Payments made towards principal repayment of a loan taken for buying or constructing a residential house property is also allowed as a deduction.
Stamp duty & registration fees and other expenses
These expenses incurred to transfer the property to the taxpayer can be claimed as a deduction. However, if you transfer the property before the end of 5 years from the year in which you took possession of the property, the deduction claimed will be added back to your income and you’ll have to pay tax on it.
Life Insurance premium paid
Any premium paid by you for life insurance of yourself, your spouse or any child (child may be dependent/independent, minor/major, or married/unmarried) can be claimed as a deduction. The 80C deduction is valid on insurance policies purchased after 1st April 2012, only if the premium is less than 10% of sum assured. The deduction can be claimed for the full amount paid (premium including service tax & other charges).
Bills for preventive health check-ups
If you have not yet exhausted your deduction limit under section 80D and you have a bill for a preventive health check-up, you can claim this bill and get a maximum of Rs 5,000 as a deduction.
Cannot claim LTA in your Return
Unfortunately, the exemption on LTA cannot be claimed in your return. The bills for your travel against LTA can only be claimed via your employer. You can claim LTA twice in a block of four years. The current block is 2018-2021. The last block was from 2014-2017. You may carry forward your unclaimed LTA to the next year. So, you can request your employer to not deduct tax on it and allow you to claim it next year. There is no way to claim this amount if you have missed submitting bills to your employer.
No submission of proofs required with the Return
Remember, you DO NOT need to submit these income tax proofs to ClearTax or to the Income Tax Department. We recommend you keep those safely, lest you receive an Income Tax Notice and the Assessing Officer calls for them. You must retain these proofs for 6 Years.