Let’s be honest — nobody likes surprises when it comes to taxes. Imagine expecting a certain take-home pay, only to see a huge chunk deducted because declarations weren’t submitted on time. That’s why tax declarations and form submissions are a vital part of payroll compliance.
As Benjamin Franklin wisely said: “In this world, nothing is certain except death and taxes.”
While we can’t avoid taxes, we can avoid unnecessary stress by managing them smartly.
Employee Tax Declarations and Updates
Every employee has opportunities to legally reduce taxable income by declaring eligible investments and expenses. Typical ones include:
- Section 80C: PF, LIC, ELSS, PPF, tax-saving FDs, etc.
- Section 80D: Health insurance premiums.
- House Rent Allowance (HRA): If living in rented accommodation.
- Section 80E: Education loan interest.
- Other deductions & rebates (like NPS contributions, donations under 80G).
Declarations usually happen at the start of the financial year, but employees should update them whenever their financial situation changes—like moving houses, buying insurance, or taking a loan.
Submitting Necessary Forms for TDS and Exemptions
Payroll accuracy depends on the right forms being submitted on time. Some of the key ones are:
- Form 12BB → Statement of tax-saving claims.
- Form 10BA → For HRA claims if not living in employer-provided housing.
- Form 15G / 15H → For no TDS deduction if income is below the taxable limit.
- Investment proofs → To validate declarations (mid-year or at year-end).
Without these, payroll teams deduct higher TDS, and employees end up waiting for refunds later.
Reflection: Questions to Ask Yourself
- Have you declared all eligible investments and expenses this year?
- Do you track whether your HRA or 80C deductions are actually reflecting in your payslip?
- Are you submitting proofs on time, or rushing at the last moment?
If you’re unsure about any of these, you might already be overpaying taxes.
Tips & Tricks for Employees
Declare Early → Don’t wait till January or February; start in April.
Keep Proofs Ready → Rent receipts, insurance statements, PPF passbooks—store them digitally.
Update Declarations → Moved houses? Took a new policy? Update immediately.
Review Payslips → Check if TDS deductions reflect your declarations correctly.
Consult HR or Finance → If confused about eligibility, ask before missing out.
Key Takeaway
Tax declarations aren’t just paperwork—they’re the bridge between your salary and your savings. Submitting them correctly and on time ensures accurate TDS, helps you avoid overpayment, and makes financial planning smoother.
As Warren Buffett said:
“Do not save what is left after spending, but spend what is left after saving.”
Smart declarations ensure you keep more of your hard-earned money working for you.