If you fail to submit the proof of reimbursements within the deadline specified by your employer, then the employer does not give the tax benefit to you. This results in extra deduction of tax from your salary.
It’s that time of the year again when you are required to file your income tax return (ITR) for the previous financial year. However, before filing your I-T return, do remember to claim benefits on your reimbursements. When you are in employment, you need to submit the tax proof to the employer for the reimbursements and deductions allowed to you. However, if you fail to submit the proof of reimbursements within the deadline specified by your employer, then the employer deducts tax and does not give the tax benefit to you. This results in extra deduction of income tax from your salary.
However, you need not worry if you are in such a situation. “There is still a way to save tax and get a refund from the Income Tax Department in case your employer has deducted higher taxes. You can claim all such deductions while filing your I-T return,” says Archit Gupta, Founder & CEO, ClearTax.in.
Let’s take a look at some reimbursements and allowances that you can claim even if any proof is not submitted by you to the employer:
1. House Rent Allowance (HRA): 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 deduction on House Rent Allowance at the time of filing your return. However, HRA should form part of your salary structure in order to claim the benefit,” says Gupta.
2. Section 80 Deductions: You can claim the deductions during return filing, even though they don’t appear on your Form 16 since you did not have the time to intimate your employer. Or you may have made those investments after the last date given by the employer for proof submission (but you made investments for deductions before 31st March of the financial year). Some of these are the expenses such as school fees for children, LIC premium etc. which you may have incurred during the financial year.
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Here is a list of some of these deductions:
Public Provident Fund
Equity linked Saving Scheme(ELSS)
School fees for children
Life and health insurance premium
Tax Saving FD
National Saving Certificate(NSC)
Donation to charitable institutions
3. Repayment of Home Loan: Repaying a home loan? Claim the benefit of both interest and principal repayment in your tax return on fulfilment of certain conditions, even if missed it in Form 16. But one thing to be noted here is that it can be claimed only after you get the possession of the house.
Cannot claim LTA & Medical/Telephone Reimbursement 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. “LTA is allowed to be claimed twice in a block of four years. You are allowed to carry forward your unclaimed LTA to the next year, so you can request your employer not to deduct tax on it and allow you to claim it next year,” says Gupta.
There is no way to claim the medical/telephone reimbursement amount if you have missed submitting bills to your employer. Your employer will deduct tax on it.
No need to submit Proofs along with return: Income tax return forms are annexure less and electronic. “It means that you don’t have to attach any documents while filing return. But you should keep these documents in a safe place. This is because you may be required to substantiate your deductions in case of any notice by the Income Tax Department,” informs Gupta.