Important Documents to Be Maintained to Save Your Taxes
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Important Documents to Be Maintained to Save Your Taxes

This article list downs the important documents that you are required to maintain to save your taxes. Documentation is very important under tax laws to defend your claim before the Revenue Authorities. Salaries employees are required to maintain these documents to ensure that HR takes into consider all the investments made by them. These would also ensure that the Human Resources Department does not deduct tax from your salary without giving credit of investments made by you.

The Indian financial year begins from April and ends on March.  In case you are a salaried employed person, the Human Resources (‘HR’) Department must have obtained a tax declaration from you.

 You are required to declare the amount of investment that would be made by you. This is useful for the purpose of computing tax deducted at source.  Tax deducted at source is popularly known as TDS in India.  TDS is the amount of tax which your employer would deduct from your salary based on your tax declaration.

Majority of employees makes the investment as declared by them in the tax declaration submitted to the HR department. However, the employees failed to maintain important documentation with regard to such investments.

It’s important to submit such documents to the HR department during the month of March.  Otherwise, your company may deduct TDS from your salary income without giving credit of investments made by you.

This article summarizes the important documents that you must preserve so that you get the credit of investments made by you and hence TDS is not deducted from your salary income.

 House Rent Allowance (‘HRA’) 

 To get maximum advantage of HRA, you should keep photocopies of the following documents:

1.                  Leave and License Agreement with your land lord

2.                  Copy of PAN card of your land lord

3.                  Original Rent Receipt

 Life Insurance Premium 

  • Copy of Insurance policy
  • Copy of premium receipt

Public Provident Fund (‘PPF’) 

  • Copy of PPF receipt

    OR

  • Copy of entries in the PPF passbook

 Fixed deposit (‘FD’’) 

  • Copy of FD certificate

    OR

  • Copy of entries in the bank passbook

Tuition fees  

  • Copy of Receipt from school acknowledging the payment of tuition fees

Mediclaim 

  • Copy of Mediclaim certificate

Donation 

  • Copy of donation receipt

 So the next time you make an investment, please take some time and photocopy the above documents and preserve in a file.  This would certainly avoid the last minute rush in the month of March, when your HR demands these documents.  Maintaining these documents in a file would also help you to save your TDS. 

The materials contained in this Article are general in nature and are not intended to constitute professional advice on any matter. Readers should consult or obtain their own independent advice before taking any action or making any decision. Neither the Author nor Factoidz will accept any liability to any person who enters into any arrangement, takes any action, or fails to take any action as a result of reading these materials.

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