Investment Proof Submission Guidelines FY 2017-18 Provisions under the Income Tax Act of India and documents to be submitted
List of documents to be submitted as proofs of investment under relevant sections Please note: This is a standard list and may not be exhaustive in nature. Additional documents may be required during actual validation depending upon the specific case. A separate email communication will be sent in such cases. Deductions under Chapter VIA 80C, 80CCC and 80CCD Deductions under 80D (Mediclaim Premium) Deductions under 80U, 80DDB and 80DD Deductions under 80E (Education Loan) Deduction under 80G (Donation) Other income Deductions under 80CCG Exemption under Leave Travel Allowance (LTA) section 10(5) House Rent Allowance (HRA) - section 10(13A) Exemption under Medical Reimbursement Exemption under Motor car expenses Exemption under Professional Pursuit Allowance Loss from House property Self Occupied and Let out Deduction under 80EE
Deductions under Chapter VIA 80C, 80CCC and 80CCD Maximum Exemption Rs.1,50,000 i. Contribution to pension plan policy of LIC or any other insurance company ii. Life insurance premium paid for self, spouse or children iii. Contribution to Public Provident Fund (PPF) for self, spouse or children. iv. National Saving Certificate (NSC) v. Fixed deposit for a term of 5 or more years with a scheduled bank vi. Contribution to Sukanya Samriddhi Account vii. Payment of tuition fees of two children viii. Repayment of housing loan principal ix. Subscription to specified mutual fund scheme or to any approved equity shares or debentures. x. Contribution to senior citizen scheme rules, 2004 xi. 5 year time deposit in an a/c under post office time deposit rules,1981 xii. Stamp duty and registration fee.
Proofs to be submitted: For item i to vi, photo copy of premium paid or investment/contribution made, and the amount of actual insurance cover in case of a life policy. For item vii, photo copy of tuition fees paid. Tuition fees, Term fees, Examination fees, Computer fees allowed. The deduction is not available for any donation or development fees paid. (University, College, School or other educational institution situated within India for full-time education) For item viii, photo copy of certificate from bank or financial institution. For item ix, photo copy of certificate of allotment, acknowledgements slip, etc. For item x and xi, receipt for contribution/ for deposit. In case of Bank deposit with bank, bank should specify on the deposit receipt that the same is eligible for 80C benefit. For item xii, photo copy of Index II. Note: Benefit is available to the person who makes the payment. -contd..
80CCD 1(B) Additional deduction in respect of any amount paid in the NPS up to Rs.50,000 Proofs to be submitted: Appropriate certificate / proof of payment (Photocopy)
Deductions under 80D (Mediclaim premium): Medical insurance premium paid or payment for preventive health check up is allowed. Note: a) for self, spouse and dependant children b) for parent/parents a) The deduction of Rs.25,000/- for self, spouse and dependant children and Rs.25,000 for parents (Total Rs.50,000) b) The deduction of Rs.25,000/- for self, spouse and dependant children and Rs.30,000 for parents if parents / parent is / are senior citizens (Total Rs.55,000) c) The deduction of Rs.30,000/- for self, spouse and dependant children if eldest member of your family (you or your spouse) is a senior citizen and Rs.30,000 for parents if parents / parent is / are senior citizens (Total Rs.60,000) For payment of preventive health check up maximum deduction of Rs.5000/- is available Senior Citizen means above 60 years
Proof to be submitted (80D): Photo copy of premium paid Original receipt of fees paid for preventive health check up, Declaration of dependency if expenses incurred for relatives Note: Senior Citizen means above 60 years Mode of Payment: Cheque or in a mode otherwise than by cash for Mediclaim insurance Cash or cheque for Preventive health check up
Medical Expenses on handicapped dependent (80DD) Dependant includes spouse, children, parents, brother or sister. (Flat deduction of Rs.75,000 in case of disability and Rs.125,000 in case of severe disability) Proofs to be submitted: Certificate from medical authority in Form 10IA along with proof of expenses incurred.
Deductions under 80U, 80DDB and 80DD Deduction in case of person with disability (80U) Deduction allowed of Rs.75,000/- for a person with disability and of Rs.1,25,000/- for a person with severe disability Proofs to be submitted: Certificate from medical authority in Form 10IA -contd..
Medical Expenses on Specified Disease (80DDB) Dependant includes spouse, children, parents, brother or sister. Deduction towards medical treatment for- Individual (up to 59 years): Rs.40,000 Senior Citizen (60 to 79 years): Rs.60,000 Super senior citizens (80 years or more): Rs80,000 Proofs to be submitted: Certificate from medical authority in Form 10I along with proof of expenses incurred and Prescription from a specialist doctor -contd.
Medical Expenses on handicapped dependant (80DD) Dependant includes spouse, children, parents, brother or sister. (Flat deduction of Rs.75,000 in case of disability and Rs.125,000 in case of severe disability) Proofs to be submitted: Certificate from medical authority in Form 10IA along with proof of expenses incurred.
Interest paid on Education Loan (80E) Deduction allowed to the extent of interest paid on loan taken for the purpose of higher education of self or relative. Relative means the spouse and children of the individual or the student for whom the individual is the legal guardian Proofs to be submitted: Appropriate certificate / proofs of payment / interest certificate from financial institution etc.
Deduction for Donation (80 G) As per master circular, the benefit for donation to charitable purposes cannot be considered for working out the tax liability by the employer. Employee can claim tax benefit on such donation in his Personal Income Tax Return. However, if donations are made to National Fund for Control of Drug Abuse Fund, Swachh Bharat Kosh fund, Clean Ganga Fund, Prime Minister s National Relief Fund, the Chief Minister s Relief Fund or the Lieutenant Governor s Relief Fund through the employer, deduction can be allowed under section 80G on the basis of a certificate issued by the employer
Other Income Other income details such as Capital Gain, Business income and Interest from other sources will not be considered for working out tax liability on salary income.
Benefit under section 80 CCG Rajiv Gandhi Equity Saving Scheme: Deduction under section 80CCG is removed from FY 2017-18 onwards. However, for taxpayers who have claimed deduction under the said section for FY 2016-17 and earlier shall be eligible for claiming deduction up to FY 2018-19. Proof to be submitted Photocopy of certificate / document showing the payment
Leave Travel Allowance (LTA) section 10(5) LTA is a concession granted to the employees and their families of travelling to any place in India. You can claim LTA exemption if you fulfil following criteria:- 1. You should actually travel to any place in India. International travel is not valid. Travel fare till the destination and back to origin is only allowed for exemption. Any inter-city travelling expenses, hotel, lodging and boarding expenses do not qualify for exemption. 2. You can either travel alone or with your family. If your family travels without you, no LTA can be claimed. You have to make the trip, either by yourself or, if claiming for your family, you should travel with them. * Family for this provision means: spouse and children Parents, brothers & sisters of the employee wholly and mainly dependent on him. -contd.
Leave Travel Concession (LTA) LTA is exempt twice in a block of four calendar years. Presently the block is applicable is from January 2014- December 2017. If you produce proof of travel, it will not be taxable to the extent of travel expenses. If you do not submit any of the proofs mentioned in next column, you will get your LTA but will have to pay tax on it. -contd
Proofs to be submitted for LTA The employee should submit documents mentioned in 1 and 2 below: 1. Declaration - In the declaration, employee should mention: a. period during which he was on leave b. number of persons travelled with him, their names; c. relationship with them and d. the person travelling (other than spouse and children) are dependant on him -contd.
Proofs to be submitted for LTA 2. Proof for travel expenses - If journey is performed by: a. Air: Original air ticket & boarding pass, etc. Exemption: The maximum exemption shall be an amount not exceeding the economy fare of the national carrier by shortest route to the place of destination. a. Train : Original train ticket Exemption: Air conditioned 1st class rail fair by shortest route to the place of destination. The air conditioned 1 st class rail fare should be provided by employee if not travelled by AC 1st Class. c. Other mode: Original ticket, actual cost, distance travelled, quote / fare of train ticket. - Contd.
Proofs to be submitted for LTA a) If recognised public transport system (RPTS) exists, first class or deluxe class fair by the shortest route to the place of destination. a) If RPTS does not exist, an amount equivalent to AC First Class rail fair for the distance of the journey by the shortest route. The air conditioned 1st class rail fare should be provided by employee if not travelled by AC 1st Class
House Rent Allowance (HRA) section 10(13A) Exemption: Employee can claim HRA exemption to the extent provided in Sec 10(13A) read with Rule 2A. To claim HRA exemption, the rent should have been actually paid by the employee for the period for which he occupied such house. Note: 1. The HRA exemption will be granted only for such relevant period for which HRA is received. 1. As per Circular No. 17/2014, if annual rent paid by the employee exceeds Rs. 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord.
Proofs to be submitted (HRA): Photocopy Receipts of rent paid for all the months for which employee is claiming exemption. Leave and License Agreement copy is required mandatorily along with Landlord PAN. Only rent towards accommodation can be considered for benefit. Rent towards furniture and other services are not entitled for HRA benefit. The rent receipts shall show the complete address of the leased premises and of Land Lord / owner with PIN Code. Employee should be in India and should have occupied that property.
Medical Reimbursement: Section 17(2) Reimbursement of an amount actually spent by the employee for obtaining medical treatment for himself or his family members is not a taxable perquisite up to a ceiling of Rs.15,000/- p.a. Family for this provision means: Spouse and children, parents, brothers and sisters of the employee wholly and mainly dependent on him.
Proofs to be submitted for Medical Reimbursement (Original): Cash memos / receipted bills of medicines purchased. If the expenditure has been incurred for persons other than the employee, spouse or children, a declaration mentioning that the person for whom the expenditure has been incurred is wholly and mainly dependent on the employee. Cash memos / receipted bills for the FY 2017-18 will be considered. Also, in case of employee joining during the year the cash memos /receipted bills not claimed in previous employment shall be considered against declaration to that effect.
Professional Pursuits Allowance: Section 10(14) Eligible employees may request reimbursement for expenses associated with professional development such as seminars, books, professionally related dues etc. for the employees professional or technical growth. Amount of maximum reimbursement is in accordance with the employees entitlement. Proofs to be submitted: (Original) Appropriate certificates / bills / invoices
Motor car expenses Reimbursement : Section 17(2)(iii) Reimbursement of the expenses for maintenance and running of motor car Taxability: If exclusively used for official purpose and expenses borne by employer: Nil Exclusively used for personal purpose (by employee) and expenses borne by employer: Actual expenses borne by employer less amount recovered from employee, if any Used partially for official and partially for personal purpose, then monthly taxability as given in the table: -contd.
Motor car expenses Reimbursement taxability: Case Car owned or hired by employer -Expenses borne by employer -Expenses borne by employee -Additional value if driver provided Car owned by employee -Expenses borne by employer -Additional value if driver - provided Engine Cubic Capacity <= 1.6 Liters > 1.6 Liters 1800 600 900 Expenses borne by employer less 1800 900 2400 900 900 Expenses borne by employer less 2400 900
Proofs to be submitted Reimbursement of Motor car expenses: Car is used exclusively for official purposes certificate by the employer to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties. Petrol bills, maintenance bills, Driver Payment Receipts (Original) Car is used for official and personal purposes - Photo copy of RC Book, Petrol Bills, maintenance Bills, Driver Payment Receipts (Original)
Loss from house property Self occupied and Let out (Total exemption is limited to Rs.2,00,000 inclusive of pre EMI) Interest payable on loan for the purpose of Acquisition or construction or Renovation, repairing or reconstruction can be claimed as deduction. If loan is taken for the purpose of acquisition or construction of self occupied property, then interest paid up to Rs.200,000 can be claimed as a deduction If loan is taken before 01st April, 1999, benefit on account of interest that can be claimed for self occupied property is Rs.30,000.
Proof to be submitted for loss from house property Self occupied Copy of interest certificate from bank providing the break up of interest and principal component for the period from 1 Apr 2017 to 31 Mar 2018. If house property and the loan has been taken jointly by the employee with any of his family member/s, then the co-owner s declaration is required to be submitted by the employee Copy of proof of completion / occupation / possession specifying the date if the property has been / will be or the construction has been / will be completed during FY 2017-18. In case pre EMI being claimed, enclose copies of certificates issued for entire period when pre EMI was paid
Proof to be submitted - Loss / Income from House property Let Out In case of let out house property, if the net result of computation of income under the head house property is a loss, the same can be claimed as a deduction against salaries. The employee needs to furnish the following information along with all other documents as required to be furnished under Loss from house property self occupied Gross Annual Value Municipal Taxes paid Deduction to be claimed for interest Address of the property Amount of loan taken Name and address of the lender
Note- Loss under house property With effect from the FY 2017-18, loss under the head house property shall be allowed to be set-off against any other head of income only to the extent of Rs.2,00,000 for any assessment year. Pre EMI Any interest paid during Financial Year(s) before the completion / occupation of the property, can be claimed in 5 equal instalments for next 5 years
Additional Benefit for Interest on Housing Loan (80EE) Additional Benefit for Interest on Housing Loan up to Rs.50,000 is allowed under following conditions Maximum loan taken from bank / financial institute is INR.35 Lakh. House cost does not exceed INR.50 Lakh. The home loan should have been sanctioned during / after FY 2017-18. Employee does not own any residential house property on date of sanction of loan. For claiming deduction u/s 80EE or provide the required details as per the form on plain paper duly signed.
Proofs to be submitted under section 80EE Declaration that the employee does not own any residential house property on the date of sanction of loan. Proof showing the value of property at the time of sanctioning of loan. Certificate by financial institution mentioning the amount of loan sanctioned and the interest paid during FY 2016-17 and FY 2017-18,
Thank You!