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"In India, if you are working as an employee, your employer computes taxes on an estimated basis on the annual salary and withholds taxes at the time of payment of such salary (i.e. pay taxes as you earn). For this purpose, employees are required to submit a declaration of their investments (in the beginning of the year or at the time of joining employment) for which tax deductions can be claimed and also provide copy of proofs of such investments within the deadline as provided by the company (usually before end of January). Failure to do so, might result in deduction of taxes without claiming the actual benefit of deductions."
Akhil Chandna
Director, Grant Thornton India LLP
This article appeared in Money Control on 09th August, 2018.
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