authenticity of investment proof

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Manju Mehra (Querist)
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23 March 2010 Hi! All

Is employer responsible to check the authenticity of the investment proof submitted by the employee?

can anyone help me with the relevant case laws?

Warm Regards - Manju

M Prabhakar Menon

M Prabhakar Menon (Expert)
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23 March 2010 This is vicarious responsibility,as the receipient of the investment u will be required to submit a list of investors with their sources to the Income Tax /banks/FIIs etc As per the current practice it is advisable to obtain the PAN of the investors and the correct postal addrtess of the investors. Your/employeer's responsibility ceases if u submit this data.

Rasesh

Rasesh (Expert)
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23 March 2010 It is the employers duty to check the authenticity of the data submitted by the employee. The declarations should be backed by photocopies of the investments made. If possible, the company should get the same audited internally.

M Prabhakar Menon

M Prabhakar Menon (Expert)
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23 March 2010 It is not the responsibility of the employer to scrutinise the data provided by the employee. It should be authentic prima facie.