Confused About Tax Exemptions and Filing Returns? Here's What You Need to Know

I am working in a bank for the past 2 months where my current employer is asking me for medical bills to get tax exemption. But if you don't submit them, then I have to personally file my returns to get that exemption. I didn't have time to file my returns. Also, somebody told me that your current employer will file your complete returns based on the information they have. So for that, you need to get a salary certificate from my previous employer (or any other certificate, I don't know... please tell me that too).

In addition to that certificate, all my income from other sources (if any) and all investments made in the current year (whether in mutual funds or insurance premiums)... If all this is correct, do I need to submit all this information with proof like receipts, or will just informing on paper be enough?

Hi Aashish,

Let me try to answer your query, although your comments do not make clear what you want to inquire about.

Any exemption sought from the employer requires supporting documents to be submitted to the payroll officer. After verification, the officer will grant the exemption, as in the case of medical reimbursement.

If the documents cannot be submitted to the employer, they will not grant the exemption. The option available to the employee is to claim the same while filing their return and attaching the necessary supporting documents.

The filing of the return by the employer is an optional scheme, to the best of my knowledge, and the final responsibility for filing the return lies with the employee.

The investments qualifying for tax exemptions need to be disclosed to the employer, and proof for the same must be provided (photocopies).

Other income can also be declared to the employer with a request to consider it while calculating TDS on salary to account for taxation on other income. Alternatively, you can address this while filing your return.

I hope this clarifies your query.

Thanks,

Pankaj Patodi