Does Company has to maintain supporting documents of investment details provided by the employee for claiming Income Tax deductions? If yes, Whether it is mentioned in any provision?
Does Company has to maintain supporting documents of investment details provided by the employee for claiming Income Tax deductions? If yes, Whether it is mentioned in any provision?
It is advisable to keep records because in case the employee fails to make necessary investments as declared to the employer, the IT dept won't hold the employer in default for not deducting correct TDS amount from employee's salary.
Yes the employer has to get the details of proposed investments/expenditure and keep a record of same after they are actually expended.
Only in case of LTA the declaration of employee is sufficient and supportings are not required as per CIT vs Larsen & Toubro' s case in 2009.
Regards,
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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