As the window for filing belated income tax returns (ITR) narrows, a key concern among salaried taxpayers is whether deductions not reported to their employer during the financial year can still be claimed. With the deadline for belated returns set for December 31, tax experts say the law largely favours taxpayers—though with important caveats.

For salaried individuals, declaring tax-saving investments and expenses to the employer helps reduce tax deducted at source (TDS) during the year. However, failure to do so does not automatically mean the benefit is lost. According to tax professionals, the TDS calculated by an employer is only provisional.

“The employer’s tax deduction is based on information available at that time. The income tax return is the final and legally valid computation of tax liability,” said Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulakara in an interview with Mint.

This means eligible deductions can still be claimed while filing the ITR—even if they were not earlier disclosed. Former Chamber of Tax Consultants president Ketan Vajani echoed this view, stating that non-disclosure to the employer has no bearing on a taxpayer’s legal entitlement. “Any deduction to which an assessee is entitled under the law can be claimed in the return of income,” he said.

Experts note that taxpayers who did not declare deductions earlier may have ended up paying excess tax through TDS. Once these deductions are claimed in the ITR, the additional tax paid is adjusted, and any surplus is refunded after processing by the Income Tax Department.

Most deductions under Chapter VI-A can be claimed at the return filing stage. These include popular sections such as 80C (investments like PPF, ELSS, LIC), 80D (health insurance), 80E (education loan interest), 80G (donations), and 80CCD(1B) (additional NPS contribution). However, such claims must align with the tax regime chosen—old or new.

There are limits, though. Vajani cautioned that certain profit-linked deductions under Chapter VI-A Part C are available only if the return is filed within the original due date. For Assessment Year 2025–26, that deadline has already passed, making these deductions unavailable in belated returns.

Tax experts also advise taxpayers to exercise caution while filing belated ITRs—maintain proper documentation, avoid inflated or duplicate claims, ensure deductions fall within statutory limits, and reconcile figures with Form 16, AIS, and bank statements to prevent scrutiny.