APPLICABLE TO EMPLOYEES BASED IN INDIA & ON SHORT & LONG TERM ASSIGNMENT OVERSEAS

Transcription

1 APPLICABLE TO EMPLOYEES BASED IN INDIA & ON SHORT & LONG TERM ASSIGNMENT OVERSEAS Dear All, Plan for your Tax savings for financial year (A.Y ) & submit the IT Saving Proofs before 25 th January-2018 for computation of TDS. General Guidelines 1. Update your Savings Declaration Form in MyWipro (MyWipro -> ->App Store -> Finance -> My Financials->Financial Declarations -> IT Declaration) with the actual investments that you have made for the Financial Year Re-confirm your declarations & submit the proofs in IT Proofs submission. Once submitted a unique serial number gets generated (which will help in tracking proofs at submission / verification stage). Declaration Form [for the year ] will not be available for any modifications after 25 th Jan Ensure that all the modifications are completed prior to this date. IT Saving Declaration will not be considered for the tax computation, if proofs are not submitted on or before 25 th January Online IT proofs submission process. (Please follow navigation link mention in the group mailer to complete the online submission process) We have deployed IT proofs softcopy online submission. The process of submitting the IT Proofs / documents online will be communicated in the Group mailer. Please keep the proof/investment wise soft/scanned documents ready.

2 Request you to note down the below important points: Only PDF/JPG/GIF documents can be uploaded. Each supporting investment proof for every declaration must be limited to 4MB. Soft/Scanned copies of documents to be kept ready separately to specific declaration. Ensure that the scanned documents have clear visibility (i.e. all fields must be visible) ***All the comprehensive information of timelines for submission, login procedure and process of uploading documents is communicated in Group announcement mail*** Please Update Your PAN in the Declaration form. If you have not yet applied for PAN, please do it now and enclose the acknowledgment for having applied. Savings declaration will not be considered for tax calculation unless you quote your PAN. Please also note that Tax authorities will not accept IT Returns unless PAN is quoted. Income tax department has introduced an online application of PAN. PAN can now be obtained in 5 days. The Link for the same is A detailed FAQ on PAN is available in mywipro - PAN. If PAN is not provided, the tax credit for the taxes which is deducted will not be available to individuals, form 16 shall not be issued and employee cannot avail tax refund. 1. HRA Exemption Monthly Rent Receipt (in original) issued by the house owner / landlord is to be submitted. Minimum of one month s Receipt is required for each quarter. Receipt should contain Name & address of the Tenant, & Landlord, Month, Rent Amount, Rented house address, and Signature of the Landlord. For any quarter rent receipt is not provided then the exemption is not provided. If the monthly rent paid by you is less than or equal to Rs.3,000/-, you need not submit the Rent Receipts. However a self-declaration has to be given for the total rent paid along with the landlords name & address and the address of property. If the self-declaration is not submitted HRA exemption will not be given for such cases. Declaration format is available in mywipro App Store ->Finance -> My Financials->Financial Declarations -> IT Declaration) HRA. Further if annual rent paid by the employee exceeds 1,00,000 per annum, it is mandatory for the employee to report PAN of the Landlord in the HRA receipt, In case the landlord does not have a PAN, a declaration in Form 60 (link of declaration Format to be added) to this effect from the Landlord along with the name and address of the landlord should be filed by the employee, if you have changed the rental house during year. Please make sure that you have updated the monthly rent details in the HRA declarations. Employees, who joined after 01 st April 2017, should update the details only from the Date of Joining.

3 2. LTA Exemption You can claim the LTA exemption on the travel expenses incurred by you along with your family to any place in India. Employee should have proceeded on leave during the travel. LTA exemption can be claimed only twice in block of 4 calendar years - current block is Original Air/Train/Bus Tickets have to be submitted and original boarding pass for Air travel is must along with the original tickets, In case traveled through Private Transportation - bills enclosed should contain names of the passengers, places of travel, date of travel, Total distance traveled & the amount of actual expenditure. If you have traveled in your own vehicle Diesel/ Petrol bills to be produced. Submit the statement attached in the [MyWipro -> App Store -> Finance -> My Financials- >Financial Declarations -> IT Declaration) - LTA attachment] for the travel details. Please note that you cannot claim Lodging / Boarding expenses and sight-seeing expenses of your travel as per IT Act. A detailed LTA Policy is available in MyWipro App Store Information My Polices INDIA (Select the country). To claim LTA exemption first you need to declare LTA amount in WBP and get the same through payroll during the FY i.e., from 1st April 2017 to 31st March If the LTA amount is not paid during the said period system will not provide the exemption even through bills are submitted. One annual leave day is mandatory during the LTA travel period. Note: a). Without LTA claim form LTA bills will not be accepted for the tax exemption. b). LTA amount has to allocate in WBP, correspondingly LTA has to declare under IT declaration page in the month of WBP allocation. 3. Medical Insurance Premium (U/s 80D) Maximum Premium amount allowed for deduction from taxable income U/s 80D is Rs 25,000 (Rs. 30,000 for senior citizen dependents), For senior citizen above 80 years of age, who are not covered by health insurance, tax deduction allowed for medical expenditure incurred upto Rs 30,000. In addition to this Parental insurance premium of 25,000 can be claimed in this section. Aggregate deduction in respective of Parental insurance premium and medical expenditure incurred for senior citizen restricted to Rs.30,000. Photocopies of the premium paid receipt should be enclosed, containing the Date of payment and a self-declaration from employee for proof of age of the patient. Please note that only direct payments made to insurance agencies should be submitted. Premiums paid as deductions through pay roll (Mediclaim) will be eligible without submission of receipts.

4 As per the company s Mediclaim policy Parental Medical Premium can be claimed through MAS. Such claims are not eligible for deduction U/s 80D if you have not claimed under MAS the same can be claimed exemption by producing the receipts. 4. Deduction in respect of maintenance including Medical treatment of Handicapped dependent (U/s 80 DD) Deduction in respect to any expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent being a person with disability. A deduction of Rs. 75,000/- will be eligible. And in case of severe physical disability as defined as per IT Act, an enhanced deduction of Rs 1,25,000/- will be available. Supporting documents in this case are:- 1. Proof of expenditure incurred for the medical treatment (including nursing), training and rehabilitation of a dependent being a person with disability or 2. Proof of amount paid or deposited under any scheme framed in this behalf by the LIC or any other insurer or the administrator or the specified company and 3. Certificate issued from a government doctor (who is a physician, a surgeon, an oculist or a psychiatrist) which is issued in financial year. If the certificate date is before the beginning of this financial year then the exemption will not be given. 5. Deduction in respect of Medical treatment U/s 80DDB Deduction in respect of actual expenditure incurred for medical treatment on self or dependent relative in respect of the following diseases Neurological Diseases where the disability level has been certified to be of 40% and above, (a) Dementia ; (b) Dystonia Musculorum Deformans ; (c) Motor Neuron Disease; (d) Ataxia; (e) Chorea ; (f) Hemiballismus ; (g) Aphasia ; (h) Parkinsons Disease ; (i) Malignant Cancers ; (j) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ; (k) Chronic Renal failure ; (l) Hematological disorders ; (m) Hemophilia ;

5 (n) Thalassaemia. Maximum deduction eligible u/s 80DDB is Actual expenses incurred or Rs 40,000/- whichever is less (Rs.60,000/- in case of patients 60 years and above but below 80 years) (Rs.80,000/- in case of patients 80 years and above). Supporting documents in this regards will be Form 10I certified by the Government doctor, medical bills and a self-declaration from employee for proof of age of the patient. 6. Education Loan Full amount of Interest paid during the financial year for loan taken to pursue higher education will be eligible u/s 80E. Supporting document required is photocopy of the certificate issued by the Bank mentioning the interest amount collected during financial year and proof for higher education studies done either for self or for relatives. Higher education means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics including vocational studies. Relative, in relation to an individual, means the spouse and children of that individual. The deduction is available for seven assessment year after the initial assessment year from when the assessee starts paying the interest on the loan. 7. Donations Donations paid which are eligible for Deduction U/s 80 G will not be eligible for deduction in calculation for Form 16 issued by Wipro, You can claim the exemption at the time of filing the IT Returns with the Tax authorities. 8. Deduction in respect of maintenance including Medical treatment for self (U/s 80 U) Deduction in respect to any expenditure incurred for the medical treatment (including nursing), training and rehabilitation for self being a person with disability. A deduction of Rs. 75,000/- will be eligible. And in case of severe physical disability as defined as per IT Act, an enhanced deduction of Rs 1,25,000/- will be available.(i.e. having any disability of 80% or above) Supporting documents in this case are:- Certificate issued from a government doctor with Form 10I (who is a physician, a surgeon, an oculist or a psychiatrist) which is issued in financial year. If the certificate date is before the beginning of this financial year then the exemption will not be given.

6 9. Interest on Housing Loan House Construction / Purchase should have been completed and house is ready to occupy during the financial year (any pre-emi interest paid before the completion of construction can be claimed over 5 years equally from the year of completion) however, pre-emi paid in the year of completion can be claimed fully in that financial year itself. Loan should be taken from the financial institutions & the House property should be owned by you. If the property / Loan is in joint name the co-owner has to provide the self-declaration of the percentage of exemption claiming. As per the new amendments act from FY deduction on loss from house property is restricted to Section 80EE Employee can claim additional exemption of under interest on housing loan subject to below conditions. a. Housing loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2017 and ending on the 31st March b. The amount of loan sanctioned for acquisition of the residential house property does not exceed 35,00,000/- (Rupees thirty-five lakh only). c. The value of residential house property does not exceed 50,00,000/- (Rupees fifty lakh only). d. Assesse does not own any residential house property on the date of sanction of loan. Proof Required:- a) A Photo copy of the Certificate Issued by the Bank (Mentioning Details of Interest & Principal amount paid in the financial year) b) Form 12 C and Form12 C working sheet is mandatory. Form12 C is available in mywipro. c) Co-borrower declaration needs to be submitted if the property / Loan are in joint name Maximum deduction allowed towards Interest on housing is Rs.2,00,000/- [for self-occupied house property]. The total deduction for the self-occupied and let out property together is In case of let out house properties, rental income should also be declared in Form 12C. Only the net income / loss can be considered for tax deduction by Wipro. Note: Interest on housing loan or The Profit/Loss on House property will not be considered unless the form 12 C and computation sheet is enclosed along with the Bank Provisional certificate, please ensure that certificate is dated after November of the current Financial Year.

7 10. Other Income / (Loss): If the employee wishes to declare any of the following types of income, he may do so in Form 12C: a) Interest received from Banks b) Taxable dividends received c) Professional charges received The following are not considered under other income / loss. a) Capital gains b) Previous employer s salary Only income is considered in this section, losses cannot be declared. Any TDS deducted on the above income should be declared in Form 12C and relevant certificates should be submitted as mentioned in the form. 11. Previous Employment Details - Applicable only to the Employees Joined after If you have joined Wipro after 1st April 2017, please submit Form-12 B available in MyWipro - > App Store -> Finance -> My Financials->Financial Declarations -> IT Declaration > Previous Employment Details - Previous Employer Full and final Tax Computation sheet and the original FORM-16 issued by your previous employer. Please note that, in case you don t submit the signed form 12B and Provisional Form 16 issued by previous employer, the same will not be considered for tax computation purpose. NOTE: Provisional Form 16 or Full & Final settlement statement (**detailed break up must be given in the statement for the Income & Tax deduction, and also exemption in the F&F computation sheet**) of only. ***Please refer the Group announcement mail and follow the navigated link for comprehensive information*** 12. Deduction u/s 80C The overall limit under this section is Rs.1,50,000. A. Premium paid under Pension schemes of LIC (Sec 80CCC) :- Premium paid towards Pension scheme u/s 80CCC are eligible u/s 80C with the overall limit of Rs. 1.5Lakh. Photocopies of premium paid receipts to be submitted. Along with the statement

8 attached in MyWipro [MyWipro -> App Store -> Finance -> My Financials->Financial Declarations -> IT Declaration) -> Section 80C & 80CCC) Pension Premium Paid attachment] for the Premium paid details. B. Premium paid under Pension schemes (Sec 80CCD) Please refer chart below:- Premium paid towards Pension scheme u/s 80CCD (1B) are eligible with the overall limit of Rs. 50,000. This Exemption is over and above of u/s 80CCE, Photocopies of premium paid receipts to be submitted C. Life Insurance Premium Photocopies of the premium paid receipts during the financial year You need to enclose the previous year premium paid Receipts for the premium due between 20-Jan-2018 and 31-Mar No Declaration / proofs required for the LIC premium if it is deductions through salary. And please submit the statement attached in MyWipro [MyWipro -> App Store -> Finance -> My Financials->Financial Declarations -> IT Declaration) -> Section 80C & 80CCC) for the Premium paid and due details. D. PPF (Public Provident Fund) Photocopy of the PPF Receipt or PPF pass book (First page containing the name and the relevant page containing the transactions for the year). No declaration or proofs required if PF & VPF deducted through salary. E. Investment in NSC Photocopy of the NSC Certificates, purchased after For NSC Interest calculation use the Calculator available in MyWipro [MyWipro -> App Store -> Finance -> My Financials- >Financial Declarations -> IT Declaration) -> Section 80C & 80CCC) [please attach this sheet along with the proofs & with the certificate numbers and you need not enclose the photocopy of the certificates] Interest on NSC: The Interest accrued on NSC if declared u/s 80C will be included in income from other sources. If it is declared u/s 80C it is not required you to declare the same in Form 12C.

9 E. ULIP, Mutual Fund / MEP / ELSS Photocopies of the Certificate or the Payment receipt. Mutual Fund Receipts which mention the exemption under this section only will be considered. F. Education Expenses Photocopies of the Tuition Fees paid to educational institution during the Financial Year, exemption is provided only for two children of the employee and will get the exemption for amount paid only towards tuition fee. G. Fixed Deposits: Fixed deposits for more than Five years term are eligible for the tax exemption. Copy of the FD certificate should be submitted. Fixed deposits with the following banks are only eligible for the exemption. 1) State Bank of India and its subsidiaries 2) All Nationalized banks 3) Scheduled commercial banks. H. NPS With effect from Financial Year , in addition to the deduction u/s 80 CCD (1), deduction of Rs. 50,000 has been on contribution in NPS (u/s 80CCD(1B)) is applicable. In other words, it can be mentioned that an employee can claim overall deduction of Rs. 2,00,000/- (i.e. Rs. 1,50,000/- u/s 80 C/80CCC/80CCD(1) and Rs. 50,000/- u/s 80 80CCD(1B)). Please note that if an Individual/ employee has not opted for the corporate plan and employees are making investment under the all citizen model i.e. on their individual basis, even in that case investment made by them can be claimed by the employee and the employer is liable to provide deduction u/s 80CCD (1) and u/s 80CCD (1B) to the employee under form 16. I: ITR Filing within Due date: As per new income Tax section 234F, from assessment year onwards, where an employee fails to file Income Tax returns before the due date (31st July 2018) shall pay. By way of fee, a sum of; (a) Rs.5000, if the return is furnished on or before the 31 st day of December (b) Rs in any other case; If the total income of the person does not exceed Rs.5,00,000, maximum fee will be Rs.1000.

10 Act fast & ensure that your IT declaration form along with your saving proofs reaches on time. For any queries on IT Proof submission, please click on the below link to raise a myhelpline call on specified subject only. <<<You can call us on toll free >>> Regards, HRSS Payroll Team