Mumbai, India — As the deadline for filing belated income tax returns approaches, many taxpayers are left wondering about their options. Can you still claim deductions that were not reported to your employer? This question is particularly pressing as the final date for belated returns is December 31, 2025. Understanding how to navigate these waters could significantly impact your tax liability.

Taxpayers are often unsure about claiming deductions that they have not disclosed to their employers during the financial year. This uncertainty can lead to missed opportunities for tax savings. According to tax experts, the Income Tax Act does allow individuals to claim deductions not reported to their employers when filing their income tax returns (ITR). This means that even if you did not inform your employer about your eligible tax-saving investments, you can still claim these deductions when you file your return.

The process of reporting deductions to your employer typically involves declaring eligible tax-saving investments and expenses throughout the financial year. This declaration allows employers to adjust the tax deducted at source (TDS) from your salary accordingly. However, the ITR filing represents the final and legally valid computation of tax, where taxpayers can make corrections or add missed claims, including deductions that were not reported earlier.

Understanding Your Claim Options for Deductions

Tax experts emphasize that any deductions legally entitled to the taxpayer can be claimed through the ITR. Siddharth Maurya, founder and Managing Director of Vibhavangal Anukulakara, states, “The tax deducted by the employer is only a provisional calculation based on the information available at that time. The ITR filing is the final and legally valid tax computation where eligible deductions can be claimed.” This means that if you have not declared certain deductions to your employer, they are not automatically forfeited.

The process of reporting deductions to your employer typically involves declaring eligible tax-saving investments and expenses throughout the financial year.

Experts point out that while taxpayers may have paid more tax through TDS due to unreported deductions, they can rectify this during the ITR filing process. Once these deductions are properly claimed, the excess tax paid will be adjusted, and any refund will be processed by the Income Tax Department.

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Among the most common deductions under Chapter VI-A of the Income Tax Act that can be claimed at the time of filing include:

• Section 80C: Investments in Public Provident Fund (PPF), Equity-Linked Savings Schemes (ELSS), and life insurance premiums.
• Section 80D: Health insurance premiums paid for self, spouse, children, and parents.
• Section 80E: Interest on education loans.
• Section 80G: Donations to eligible charities.
• Section 80CCD(1B): Additional contributions to the National Pension Scheme (NPS).

However, it’s essential to ensure that these claims align with the selected tax regime. Some deductions are only available if the return is filed within the due date, as Ketan Vajani, former president of the Chamber of Tax Consultants, notes. For example, profit-linked deductions under Chapter VI-A – Part C must be claimed within the original due date to be valid.

Key Considerations When Filing Your ITR

As you prepare to file your belated ITR, here are some key considerations to keep in mind:

• Maintain Documentation: Ensure you have all necessary documents, such as receipts and statements, to support your claims.
• Verify Claims: Double-check that the deductions you are claiming are within the statutory limits and align with the correct tax regime.
• Avoid Duplicate Claims: Be cautious not to claim the same deduction multiple times or inflate your claims.
• Cross-Check Figures: Always verify your figures against Form 16, Annual Information Statement (AIS), and bank statements to ensure accuracy.

However, experts warn that this approach may not be without its pitfalls. Ketan Vajani cautions that while claiming deductions is allowed, taxpayers should be wary of potential scrutiny from the tax department, especially if there are significant discrepancies between TDS and reported income. This could lead to complications during assessment. Therefore, it’s crucial to ensure that all claims are well-documented and justifiable.

Section 80E: Interest on education loans.

Future Implications for Taxpayers

The landscape of income tax filing is evolving, and understanding the nuances of deductions is more important than ever. With the government increasingly focusing on compliance and accuracy in tax filings, taxpayers must stay informed about their rights and responsibilities. As the tax filing season progresses, individuals should proactively seek guidance to optimize their tax positions.

In this context, it’s essential to consider how your financial decisions today will impact your tax liabilities in the future. Are you prepared to take advantage of all available deductions, and how will you ensure compliance with evolving tax regulations? As the deadline approaches, now is the time to assess your financial strategy and make informed decisions that could benefit you in the long run.

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