{"id":2362,"date":"2021-02-11T16:59:32","date_gmt":"2021-02-11T11:29:32","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=2362"},"modified":"2021-04-06T10:41:02","modified_gmt":"2021-04-06T05:11:02","slug":"what-is-income-tax-declaration-itd","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/","title":{"rendered":"What is income tax declaration (ITD)?"},"content":{"rendered":"\n<p>It is always a good practice to do your tax planning at the beginning of a financial year. Because, sound planning helps you make the most of the tax exemptions and deductions available to you and, in turn, save taxes. Submitting your ITD is one such way. More on it in this article.<\/p>\n\n\n\n<p><strong>This article covers:<\/strong><\/p>\n\n\n\n<p><a href=\"#ITD\">What is ITD?<\/a><\/p>\n\n\n\n<p><a href=\"#Consequences\">Consequences of not submitting ITD<\/a><\/p>\n\n\n\n<p><a href=\"#Constituents\">Constituents of Form 12BB<\/a><\/p>\n\n\n\n<p><a href=\"#Eligible\">Eligible expenses and investments to be declared in ITD<\/a><\/p>\n\n\n\n<p><a href=\"#Due\">What is the due date of submitting ITD?<\/a><\/p>\n\n\n\n<p><a href=\"#After\">What after submitting ITD?<\/a><\/p>\n\n\n\n<p><a href=\"#Absence\">Absence of proof<\/a><\/p>\n\n\n\n<p><a href=\"#Form\">What is Form 12BB?<\/a><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"427\" height=\"1024\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/infographic-ITD-1-427x1024.png\" alt=\"\" class=\"wp-image-2366\" srcset=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/infographic-ITD-1-427x1024.png 427w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/infographic-ITD-1-125x300.png 125w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/infographic-ITD-1-768x1844.png 768w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/infographic-ITD-1-640x1536.png 640w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/infographic-ITD-1-853x2048.png 853w, https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/infographic-ITD-1.png 1101w\" sizes=\"(max-width: 427px) 100vw, 427px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#What-is-the-Income-Tax-Declaration-ITD\" title=\"What is the Income Tax Declaration (ITD)?\">What is the Income Tax Declaration (ITD)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#Consequences-of-not-submitting-ITD\" title=\"Consequences of not submitting ITD\">Consequences of not submitting ITD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#What-after-your-employer-deducts-higher-TDS\" title=\"What after your employer deducts higher TDS?\">What after your employer deducts higher TDS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#Constituents-of-Form-12BB\" title=\"Constituents of Form 12BB\">Constituents of Form 12BB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#Eligible-expenses-and-investments-to-be-declared-in-ITD\" title=\"Eligible expenses and investments to be declared in ITD\">Eligible expenses and investments to be declared in ITD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#What-is-the-due-date-of-submitting-ITD\" title=\"What is the due date of submitting ITD?\">What is the due date of submitting ITD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#What-after-submitting-ITD\" title=\"What after submitting ITD?\">What after submitting ITD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#Absence-of-proof\" title=\"Absence of proof\">Absence of proof<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax-declaration-itd\/#What-is-Form-12BB\" title=\"What is Form 12BB?\">What is Form 12BB?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"ITD\"><span class=\"ez-toc-section\" id=\"What-is-the-Income-Tax-Declaration-ITD\"><\/span>What is the Income Tax Declaration (ITD)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">income tax<\/a> laws, your employer is mandated to deduct <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-tds-and-how-to-file-it\/\">TDS<\/a> on your annual salary on a monthly basis. For this purpose, you are required to submit your Income Tax Declaration (ITD) with them. ITD is proof of expenses and investments you plan to make during a financial year. Typically, your employer will require you to declare such investments and expenses on their HR portal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Consequences\"><span class=\"ez-toc-section\" id=\"Consequences-of-not-submitting-ITD\"><\/span>Consequences of not submitting ITD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you don\u2019t submit ITD, it means you don\u2019t declare any expenses and investments, which inflates your income. Thus, your employer ends up deducting a higher TDS on your income. Meaning, they recover the shortfall in taxes from your salary in the following months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"TDS\"><span class=\"ez-toc-section\" id=\"What-after-your-employer-deducts-higher-TDS\"><\/span>What after your employer deducts higher TDS?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In case your employer deducts excess TDS in a financial year, you can claim a refund by filing your ITR.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Constituents\"><span class=\"ez-toc-section\" id=\"Constituents-of-Form-12BB\"><\/span>Constituents of Form 12BB<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Your name<\/li><li>Your address<\/li><li>Your PAN<\/li><li>Financial year<\/li><li>Eligible expenses<\/li><li>Eligible investments<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Eligible\"><span class=\"ez-toc-section\" id=\"Eligible-expenses-and-investments-to-be-declared-in-ITD\"><\/span>Eligible expenses and investments to be declared in ITD<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>House Rent Allowance<\/li><li>Interest payable on loan<\/li><li>Leave <a href=\"https:\/\/www.tickertape.in\/blog\/effective-money-saving-travel-hacks\/\">Travel<\/a> Allowance to be claimed<\/li><li>Investments and expenses eligible for deduction under Section 80C, 80CCC, 80CCD, 80E, 80G, 80TTA, 80D<\/li><li>Other incomes such as rent and interest<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Due\"><span class=\"ez-toc-section\" id=\"What-is-the-due-date-of-submitting-ITD\"><\/span>What is the due date of submitting ITD?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Your employer sets a cut-off date within which you are required to submit your ITD.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"After\"><span class=\"ez-toc-section\" id=\"What-after-submitting-ITD\"><\/span>What after submitting ITD?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After submitting your ITD, you are required to submit documentary proof for your declaration. These include receipts and loan certificates. The deadline to submit the proof of expense or investment generally falls between Jan and Feb. In addition, you are also required to submit Form 12BB.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Absence\"><span class=\"ez-toc-section\" id=\"Absence-of-proof\"><\/span>Absence of proof<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In case you don\u2019t have documentary proof for your declaration, you are required to claim a refund in your income tax return (ITR). However, your ITR has higher chances of attracting scrutiny.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Form\"><span class=\"ez-toc-section\" id=\"What-is-Form-12BB\"><\/span>What is Form 12BB?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form 12BB is a statement you need to submit to claim tax deductions, tax benefits, and or rebates on investments and expenses that you make through a financial year. The form is to be submitted at the end of the financial year. In addition, you are also required to furnish documentary proof of such expenses and investments at the end of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ITD is proof of expenses and investments you plan to make during a financial year. It helps you plan and save taxes<\/p>\n","protected":false},"author":27,"featured_media":2363,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[8,1741],"tags":[215,214,213],"acf":[],"modified_by":"Manonmayi","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/ITD.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2362"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=2362"}],"version-history":[{"count":7,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2362\/revisions"}],"predecessor-version":[{"id":2380,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2362\/revisions\/2380"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/2363"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=2362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=2362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=2362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}