As an employee we all dread the annual declaration statement that is required to be submitted to the Employer, which includes the income from other sources, Income from House property, details of deduction claimed, etc. Most of us are filling the details on an estimated basis and not the exact basis. But after the recent change that is required to be filled in TDS return form 24Q. Since all the details filled in the TDS return will be automatically populated while filing Income Tax return and any change in that will lead to generation of Income Tax notices.
So the declaration required to be filled by employees needs to be submitted by them after the month of March of the relevant year due to the following counts:
1. Exact figure of details of Interest on Housing loan and Principal amount is generated after the month of March. Till now the employees were on the basis of provisional interest certificate, and there is difference in the provisional amount and actual amount. any difference in amount may lead to notice u/s 139(9) and lead to avoidable litigation. So it’s better to wait for the month of April for the generation of Interest certificate And then submit the declaration.
2. Since the revised guidelines requires the amount of other sources needs to be declared, the assessee has to declare other income like income from Saving bank, Income from FD, etc, the final figures will be available in the month of April only.
3. Many times the declaration is submitted in the month of December and January and they do not declare the full amount of deduction, which they invest into after submitting the declaration to the employer, say they invest some amount in PPF in the month of March which they didn’t disclose in the declaration. These kind of difference may lead to notice from Income tax department.
So it will much beneficial for Employers to ask for the declaration from Employees after the month of March for the above mentioned points