New Delhi: As the financial year comes to a close, employers across India have started collecting final investment proofs and tax declarations from salaried employees to complete TDS calculations. The most important requirement is confirming your tax regime and submitting any pending proofs under the Old Regime.
These submissions help payroll teams avoid mismatches, prevent excess TDS and ensure smooth Form 16 issuance.
Core News Details – The Facts
HR and payroll experts say employers typically request the following documents at the end of every financial year:
1. Tax Regime Confirmation (Old or New)
Employees must inform their employer whether they want to follow the Old Tax Regime or the New Default Regime.
- If no choice is submitted, employers apply the New Regime by default.
- TDS is calculated strictly based on the employee’s declared choice.
Employees with home loans, insurance premiums or large 80C investments often benefit more from the Old Regime.
2. Form 12BB (Deduction & Allowance Details)
Employees generally submit Form 12BB, which includes declarations for:
- Section 80C investments (PF, PPF, ELSS, LIC)
- Section 80D medical insurance
- Home loan interest
- Education loan interest
- Donations under Section 80G
- HRA details (if applicable)
This helps employers estimate eligible deductions for TDS under the Old Regime.
Note: If you opt for the New Tax Regime, you typically do not need to submit investment proofs such as LIC, PPF, ELSS or HRA receipts, because these deductions are not available under the new regime.
3. HRA Rent Receipts (If Claiming House Rent Allowance)
To claim HRA benefits, employees may need to provide:
- Monthly or quarterly rent receipts
- Landlord’s PAN (mandatory if annual rent exceeds ₹1 lakh)
- Rental agreement, if requested by HR
Additional Requirement: If rent is paid in cash, receipts must carry a ₹1 Revenue Stamp when the payment exceeds ₹5,000 per receipt.
4. Updated Personal & Compliance Details
Employers may request:
- PAN–Aadhaar linkage confirmation
- Updated bank account details
- Address proof (for HRA or LTA claims)
- Contact information for Form 16 delivery
5. Previous Employment Documents (For New Joiners)
Employees who changed jobs must submit:
- Previous employer’s Form 16
- Salary slips
- TDS certificates
This prevents double taxation and ensures correct TDS computation.
Impact on Employees & Official Reaction
Payroll teams say early submission of documents helps avoid:
- Higher TDS deductions
- Delays in Form 16
- AIS/TIS mismatches
- Compliance notices due to incorrect reporting
Tax professionals recommend employees maintain digital copies of all proofs and periodically verify entries on the Income Tax portal.
What Employees Should Do Now
- Confirm your tax regime with HR.
- Submit Form 12BB with deduction details (Old Regime only).
- Provide rent receipts if claiming HRA.
- Ensure PAN–Aadhaar is linked.
- Upload previous employer documents if you switched jobs.
Key Highlights
- End of financial year: Employers collecting final tax proofs.
- Who is affected: All salaried employees.
- Immediate action: Submit regime choice and Form 12BB.
FAQ Section
A1: Yes. If you don’t declare a choice, your employer will automatically deduct tax based on the New Tax Regime rates. This may reduce your in‑hand salary if you have large deductions (home loan interest, PF, insurance) that work better under the Old Regime.
A2: Most employers collect final proofs now to close the year’s TDS calculations. Some companies may have already collected declarations earlier in the year.
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