Can an employee submit investment proofs to reduce salary TDS?

Question

tdsguru.in (CA firm) · Accepted Answer

Yes — under the old regime the employee declares planned investments in Form 12BB and submits proofs before year-end so the employer reduces TDS accordingly. An employee opting for the old regime can declare eligible deductions (80C, 80D, HRA, home-loan interest, etc.) to the employer in Form 12BB, and the employer factors these into the TDS estimate. Declarations are usually collected early in the year and actual proofs verified before the final quarter (typically January–March). If proofs fall short of the declaration, the employer recovers the differential TDS in the remaining months. The new regime allows very few such deductions.