Salary deduction_investment

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2015 Dear Experts,

My Query is as follows:

Emp Declared his investments for whole year for tax exemption. and his employment is April to Jan. rest three months unemployment. and he made the invest in march under section 80c. can he claim this deduction. employer has not included this their return.

Pls confirm the issues.

Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2015 Dear Expert, please reply asap

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

22 July 2025 Got it — here’s the situation and what applies:

Scenario:
Employee worked April to January (10 months).

Employee was unemployed for February and March.

Employee made investments in March under Section 80C.

Employer did not include these investments in the TDS calculation (probably because employment ended before March).

What the law says:
For tax deduction under Section 80C, the date of investment matters, not the period of employment.

Employee can claim deduction for investments made during the financial year (April to March) in their Income Tax Return (ITR) regardless of when the employment ended.

Employer deducts TDS based on investment declarations received before the end of employment. If investments were made after employment ended, the employer may not include those.

But employee can claim these investments while filing the return of income, even if the employer didn't consider them for TDS.

Conclusion:
Employee can claim the deduction for the investments made in March while filing the return.

Employer not including the investment in TDS return is not a bar for employee to claim the deduction.

Employee should keep proof of investment (receipts, documents) ready for claiming the deduction and for any future scrutiny.

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