Why is Tax benefit paperwork mandatory?

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As an employee working with a multinational or a firm or a business house, there are a number of advantages you are entitled with. These are in the form of tax benefits or HRA or LTA and so on. However, for the company to provide your salary based on the advantages of the above, it is really important that you save and draft the tax saving and other documents at the apt time of the month. Most of the time, the employee fails to submit the due paper work, and then are devoid of the advantage. Hence, it is your duty as an employee to take out some hours of your super hectic schedule and ensure the documentation work is complete.

Which is the paperwork mandatory for you?

The following pointers will aid in providing you with a guideline:-

  1. Section 80C- the enhanced limit of Rs. 1.5 lakhs has ensured that the employee files the documents for the extra Rs. 50,000. It may happen that this limit is taken by the Employee Provident Fund, which is deducted by the company. However, if the latter is not the case for you, then make sure that you have utilised the norms of the Section 80C. The important paper for the same needs to be submitted to the department.
  2. HRA- If you are in a rented flat, then you can take the advantage of HRA. In here, it is important for the employee to provide with a tenancy agreement properly registered. The agreement will have the Permanent Account Number (PAN) of you and your owner which is registered with the municipality. The employees, who receive an HRA of Rs. 3000, are not required to give proof of the rent which they are paying. It is important here to understand that if the owner does not have a PAN; it is the duty of the employee to give the details of the owner along with this particular fact. Within the month of February, the documents are required to be reached with the Income Tax Department.
  3. LTA- There are a number of employees, which take the advantage of the LTA. LTA is the Leave Travel Allowance. There are some employers which require the flight ticket of the employee as a proof. If you want to take complete benefit of your LTA, it is important that you submit the documents in time.
  4. National Pension system- With the latest notification by the Government with respect to Rs. 50,000 tax benefits, for investing in NPS there are a number of employees wanting to take the advantage. If you too belong to this category, it is advisable for you to submit the documentation for the same.
  5. Medical, conveyance, other- There must be many other advantages provided by your employer for the employees. It is always better to gain benefit from them. However, in order to gain benefit it is important to file all the requisite documentation in the correct time of the year.
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