Hi there! 
“You are required to submit your investment declarations.”
No, this isn’t your HR, but chances are, you’ve already seen that email. If not, it’s probably on its way. Your investment declarations help your employer estimate your taxable income, which directly decides how much TDS gets cut from your salary throughout the year.
Since this often leads to a quick review of your finances, it’s also a good time to think about where you’re investing. If you’re under the new tax regime, you might think you’re completely out of options since popular deductions like HRA or insurance aren’t available. But a few exemptions are still available if you’re open to tweaking your CTC.
And if your income is below the taxable limit, there’s something else to consider. Submitting Form 121 can help you avoid TDS on interest and other income.
We’ve handpicked threads on these topics in today’s edition.
TOP THREADS
What is Form 124 for investment declarations to your employer?
At the start of the tax year, your employer begins calculating TDS on your salary. If you plan to make any tax-saving investments or claim deductions during the year, you need to declare them using Form 124. Based on this, your taxable income is adjusted, and TDS is reduced from your monthly salary. So you need…Continue Reading
Restructure your CTC to claim these two exemptions under new regime
The new regime has lower tax rates, but it leaves out most deductions available under the old one. However, two valuable exemptions sit within your salary structure. With a quick nudge to your HR and a few tweaks to your CTC, you can claim a maximum benefit of…Continue Reading
Can I avoid paying TDS on interest if my income is below the basic exemption limit?
Banks deduct TDS before paying you interest because it is fully taxable. But if your total income is below the basic exemption limit, you can submit Form 121 to avoid TDS from being deducted. This applies to income such as bank interest, dividends…Continue Reading
FAQs
Do I need to provide proofs while submitting Form 124?
No, not initially. When you submit Form 124 at the start of the year (April or May), the estimated figures are sufficient. Actual investment proofs are required later in the year, before your employer calculates final TDS in the last quarter.
Is employer contribution to NPS mandatory?
Employer contribution to NPS is optional and depends on whether your company offers it as part of your CTC structure.
Can senior citizens also submit Form 121?
Yes, senior citizens can submit Form 121 if their total taxable income is below the applicable exemption limit, ₹3 lakh for senior citizens (60–80 years) and ₹5 lakh for super senior citizens (80+ years) under the old regime.
Can I submit Form 121 for income from freelancing or business?
No, Form 121 is only for specific incomes like interest, dividends, rent, and pension. It does not apply to business or professional income.
RESULTS FROM LAST DIGEST
GST on converting Electronic Gold Receipt into physical gold is?
A) 2% (0%)
B) 1% (17%)
C) 3% (83%) 
D) 5% (0%)
Well done! 83% of people chose the right answer.