Here are some of the ways in which an investor can ensure that they have the right proof available with them that will be enough to claim the deduction that they have made
The investment made by an individual for various tax saving routes can be claimed by them in their income tax return. At the same time there is a need to keep proof of the investment so that in case this is required then it can be shown to the tax officer. Now the effort of many investors has become quite lax because there is no need to submit the proof along with the return while earlier it had to be done when the return was being filed so this made everyone alert and they had the details ready. Here are some of the ways in which an investor can ensure that they have the right proof available with them that will be enough to claim the deduction that they have made.
Actual investment document
The best way to complete the proof of investment is to provide the document that shows the investment having being made. This can be a receipt that has been given at the time of investment so this would prove that the said money has been invested. In case of Public Provident Fund (PPF) for example there is a challan that is used for the purpose of making the investment if this is done physically. In this case there is a stamp on the challan which can be shown as proof. At the same time the passbook of PPF will also show the amount that has been invested and this can also be used as the proof of the investment having being completed. Similarly if there is an investment that has been made in an equity linked savings scheme then the account statement would show the amount as a purchase of the units of the fund and this would be present with the name, date and other details of the investor. A copy of the account statement would be the necessary proof of the investment having being done.
There are times when the individual does not pay much attention to the investment having been made and they have lost or misplaced the vital proof document. This can happen as it is quite possible that the records have not been kept or that the paperwork was eliminated at some point of time during the year. In such a situation it would be important to look to see if a duplicate can be generated. With most investments having moved online it is easier for an individual to generate another copy of the document required and this would be a replacement for the lost proof. For this purpose it is vital that the investor knows where the details would be available and how they can access this. It is always helpful if one is able to use technology effectively in this regard.
Another way in which an investor can ensure that they have the necessary records with them is by ensuring that they keep a soft copy of the various documents handy. In this case if there is a scanned copy available then the individual would not have any problems even if the original was lost as they would be able to produce the replacement when required. This would be especially useful for areas where it might be difficult to get another copy of the document like say tuition fees paid for the child where another receipt might not be possible to get. In such a situation having the soft copy would prove to be easier to maintain and at the same time also can be stored and accessed whenever required. This is an option that every investor should consider using.