How do I make an investment declaration?

Investment Declaration is made on Form 12BB that has to be submitted at the end of the financial year. Please note that this form is NOT to be submitted to Income Tax Department, but has to be submitted to your employer. In the first part of Form 12BB, you can fill the details required to claim tax deduction on HRA.

How do I submit an investment proof for tax purposes?

Investment Proof: Simply submit a copy of your FD receipt or print out your FD receipt/statement from your bank website (net banking). Insurance Policy: Life Insurance Premiums are tax-deductible up to Rs 1.5 lakh per annum under Section 80C.

What is included in investment declaration?

An investment declaration form is a provisional statement that has details about your proposed investments and expenses that are income-tax deductible. At the end of the financial year, you need to provide supporting investment proofs for these investments that you have specified in the declaration form.

What happens if you don’t declare investment?

Your employer will go ahead and deduct the tax from your salary assuming that non-evidenced investments were not made. While filing your returns you can calculate your revised tax payable after considering the pending investment proofs. As a result, your Form 16 tax will be higher than the actual taxable payable.

Do you declare investment in new tax regime?

If you are a salaried person, your employer might have asked you to make the investment declaration for the financial year 2021-22. This year, apart from the normal investment declarations, employees are being asked to declare the tax regime they are going to opt for.

Is investment declaration mandatory?

Investment declaration has to be done in the beginning of a financial year. Your employer asks you to declare your tax-saving investments for the year to be able to deduct tax accordingly from your monthly salary. Investment declaration is important for you because it can lead to higher in-hand salary.

Can I submit investment proof without declaration?

But if you did not submit your investment declaration form, your monthly salary slip can throw you off. If you missed your investment declaration deadline, your employer would have over-calculated your tax liability and deduct the excess tax due from your salary for the following month.

How do I claim money earned under the table?

You can use IRS Form 1040 or 1040-SR to accurately report your cash income. If this money was not reported to your employer, such as a scenario in which you earned cash tips, you should report these funds using IRS Form 4137.

How do I report cash income on my tax return?

Use Form 1040, Schedule C, Profit or Loss from Business, to report income and expenses. Taxpayers will also need to prepare Form 1040 Schedule SE for self-employment taxes if the net profit exceeds $400 for a year.