Investment Proof Submission Guidelines for

SECTIONS COMPONENT PROOF TO BE SUBMITTED

Photocopy of the receipt and insurance certificate issued by the Insurance Company

Receipts should be of the current financial year only (April 2018 – March 2019)
Receipt / Certificate should specify that benefit eligible u/s 80D (Mediclaim Insurance)
Medical
80D Deduction through salary for parents will be considered. No proof required
Insurance
Only Premium amount is allowed
Preventive health check-up is allowed for deduction upto Rs 5,000, within the overall deduction limit

Deduction for Medical expenditure

Photocopy of certificate (Form - 10 IA) issued by the competent medical authority in a Government
Hospital specifying the % of disability. Refer the form 10 IA in the IPSF kit to know the format.
Maintenance
/Medical
80DD treatment of Self-declaration mentioning amount spent on treatment, training or rehabilitation of the
Handicapped handicapped dependent or receipt of the amount paid to LIC/UTI for the policy
dependents
Where condition of disability requires reassessment, fresh certificate to be obtained after its expiry
to continue claiming the deduction

Submit a certificate in Form 10-I from a neurologist, oncologist, urologist, haematologist,

Deduction in immunologist or other specialist as mentioned in Rule 11DD
respect of
80DDB Applicable for the assessee or their dependant husband/wife, children, parents, brothers and sisters
Medical
Treatment of the tax payer

Eligible if loan is availed by the employee for self, spouse or children, only for pursuing higher
education on or after April 1, 2007

Provisional certificate only from Banks / Financial Institutions specifying the following:
Education Loan
80E
Interest Benefit Said loan is an Educational Loan and qualify for benefit u/s 80E
Break up of principal and interest on the loan for current financial year (April 2018 – March 2019)

Interest pertaining to first 8 years on loans taken for higher education such as Engineering / Medical
etc.

Deduction in Photocopy of certificate (Form - 10 IA) issued by the competent medical authority in a Government
case of Hospital specifying the % of disability. Refer the form 10 IA in the IPSF kit to know the format.
80U Disability-Only
Self
Page 1 of 40
 Deduction in Investment Proof Submission Guidelines for
case of
SECTIONS COMPONENT
Disability-Only PROOF TO BE SUBMITTED
80U
Self Where condition of disability requires reassessment, fresh certificate to be obtained after its expiry,
to continue claiming the deduction.

Additional NPS In case an additional NPS contribution made outside of salary pertaining to the current financial year
Contribution (April 2018 - March 2019) deductible u/s 80CCD1B, then photocopy of Receipt/Challan issued by the
80CCD1B Bank or Post office. The challan copy should have the PRAN details of assessee.
(External
Investment)

Provisional certificate pertaining to current financial year (April 2018 – March 2019) with breakup of
interest and principal from the Housing Finance Company / Bank. PAN and address of the Bank
should be provided.

In case of joint loan, declaration specifying the % of benefit claimed by the individual

Loss on Self-
Occupied house
Sec 24 property PAN of loan lender / bank is mandatory to furnish to claim the housing loan benefit
(Housing loan
interest)

Possession Letter from Builder or through self declaration from the employee is mandatory as per IT
circular no 8/2012, dated October 5, 2012

Loan should be sanctioned during the financial year 2016-17

Loan Sanctioned amount does not exceed Rs.35 lakh
Additional Value of residential property does not exceed Rs.50 lakh
80EE Housing Loan The assessee does not own any other residential house property on the date of sanction of
benefit loan. Section 80EE benefit is applicable for self occupied property

Provisional certificate pertaining to current financial year (April 2018 – March 2019) with breakup of
interest and principal from the Housing Finance Company / Bank. PAN and address of the
Bank should be provided.

Page 2 of 40
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED
In case of joint loan, declaration specifying the % of benefit claimed by the individual

Form 12 C or Computation of Loss / Income as per rule is mandatory. Template attached / available
on IPSF Online calculations

If the premises is left vacant / occupied by family, as per Section23 (1) (c), Notional Rental Income
Loss / Income has to be arrived and then, the net loss has to be arrived.
on Let out House
Sec 24 Property
(Housing loan Notional rent to be taken as municipal valuation or the rent which similar property in the same
interest) locality would fetch, whichever is higher. However, if standard rent is fixed for the property, then
notional rent cannot exceed the standard rent

The complete postal address of the property is mandatory to be entered in the format house
number/colony/district/city/state/pin code and same will be validated against the details provided in
the uploaded proofs.

Municipal tax payment receipt/ rental agreement supporting the notional rental/ actual
rental income declared, is mandatory.

PAN of loan lender/ bank is mandatory to be furnished to claim the housing loan benefit.

Page 3 of 40
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED
Policy can be from any approved company by IRDA (Insurance Regulatory & Development Authority)

Photocopy of receipts pertaining to current financial year (April 2018 – March 2019)
80CCC Pension Policy
Policy should be in the name of individual

Policy should specify that benefit eligible u/s 80CCC (Pension)

PF / VPF / LIC
80C Deduction Deduction through payroll will be considered. No proof required for the same.
through salary

Policy can be from any approved company by IRDA (Insurance Regulatory & Development Authority)

Photocopy of receipts pertaining to current financial year (April 2018 – March 2019)

Policy can be in the name of individual, spouse and children

Life Insurance
80C
Premium
Policy should specify that benefit eligible u/s 80C

Photocopy of previous year receipts are required for future months, as proof

Declaration for future months to be submitted

Photocopy of stamped challan with passbook, or Sukanya Samriddhi passbook alone.

Sukanya
80C Samriddhi Sukanya Samriddhi Account should be in the name of daughter
Scheme
Receipts should be of the current financial year only (April 2018 – March 2019)

Photocopy of stamped challan with PPF passbook, or PPF passbook alone

Public provident Public Provident fund should be in the name of indvidual, spouse or children
80C
fund (PPF)

Receipts should be of the current financial year only (April 2018 – March 2019)

Page 4 of 40
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED

Photocopy of all the certificates for which interest is being claimed

NSC certificate should have been taken on or after April 1, 2011

80C NSC Interest NSC Certificate should be in the name of individual (Self only)

Calculation of Interest is mandatory as per the NSC interest calculation table given along with the
IPSF

Photocopy of receipts / certificates pertaining to current financial year only (April 2018 – March
2019)
National Savings
80C
Certificate (NSC)
NSC Certificate should be in the name of individual (Self only)

Photocopy of the certificate / bond issued by the scheduled bank should be of the current financial
year only (April 2018 – March 2019)
Term deposits for a minimum period of 5 years with a scheduled bank are eligible for deduction
Fixed Deposit in
80C a Scheduled
Policy should specify that benefit eligible u/s 80C. If not specified, letter from the bank specifying
Bank
the eligibility u/s 80C is required

Certificate should be in the name of individual (Self only)

Photocopy of Receipts / Statements pertaining to current financial year only (April 2018 – March
2019)

Unit Linked Receipt can be in the name of individual, spouse and children
80C
Insurance Plan
Policy should specify that benefit eligible u/s 80C

Photocopy of Receipts / Statements pertaining to current financial year only (April 2018 – March
2019) - Specified funds only
Mutual Fund /
80C Receipt should be in the name of individual (Self only)
ELSS

Policy should specify that benefit eligible u/s 80C

Page 5 of 40
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED

Photocopy of Receipts / Bond pertaining to current financial year only (April 2018 – March 2019)

Bond should be in the name of individual (Self only)

Infrastructure
80C
Bonds
Term should be > = 3 years

Receipt / Bond should specify that benefit eligible u/s 80C

Photocopy of Receipts for tuition fees paid, pertaining to current financial year only (Apr ’18 – Mar
’19)

Photocopy of Receipts for term fees paid, pertaining to current financial year only (April 2018 –
Children Tuition March 2019)
80C
Fees

Only amount mentioned as ‘Tuition Fee’ in the fee receipt will be considered for deduction

Eligible only if the employee is a Sr. Citizen. Sr.Citizen is >= 60 years, as per Income Tax Act
Deposit under
80C Senior Citizens Certificate should be of the current financial year only (April 2018 – March 2019)
Saving Scheme
Certificate should specify that benefit eligible u/s senior citizen saving scheme

Page 6 of 40
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED
Copy of the Receipt/certificate issued by the Post office

Five Yr Time Certificate should be in the name of individual (Self only)

80C Deposit Scheme
in Post Office
Time deposit for a period of 5 years with a post office is eligible for deduction.

Provisional certificate pertaining to current financial year (April 2018 – March 2019) with breakup of
interest and principal from the Housing Finance Company / Bank

Housing
In case of Joint loan, declaration specifying the % of benefit claimed by the individual
Principal
80C including
Registration/ Housing loan principal deduction through payroll will be considered. No proof required
Stamp Duty
Photocopy of Sale Deed and Stamp Duty Paid Receipt pertaining to current financial year (April 2018
– March 2019)

In case of NPS contribution made during the current financial year (April 2018 – March 2019) .
NPS ( External Photocopy of Receipt/Challan issued by the Bank or Post office. The challan copy should have the
80CCD1
Investment) PRAN details of assessee.

Copies of A&B
A. The Demat account with the details of investments made in:
1.Shares given under BSE100
2.Shares given in CNX100
3.Shares of Navratnas, Maharatnas and Miniratnas companies
4.Follow on public offers of above companies
5.IPO(intial public offers) of PSUs.
Rajiv Gandhi 6.Mutual funds who has invested in above five type of shares shown above.
80CCG Equity Savings 7.ETF (exchange traded funds ) invested money only in Sr. No. 1-5 shown above,
Scheme
B. Copy of Form A - declaration to be submitted by depository participant, or copy of Form B
-declaration to be submitted by the new retail investor.

Page 7 of 40
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED
Self-declaration from the employee/certificate from the Bank/co-operative bank/Post office
mentioning the total interest earned only from the savings account during the FY April 208 – March
2019. Applies to senior citizens

Interest on
80TTB Savings Bank
account

Self-declaration from the employee/certificate from the Bank/co-operative bank/Post office

Interest on
mentioning the total interest earned only from the savings account during the FY April 2018 – March
80TTA Savings Bank
2019. Not apply to senior citizens
account

Previous Employment Details

Who is eligible?

Employees who has worked in any other company before joining the current company, within the financial year (April 2018 – March 2019) and whose Date of Jo

What is considered Previous Employer Income?

The Income after Sec 10 exemption is considered as Previous Employer Income. This includes all earnings earned till the Date of leaving for the current financia

Proof to be submitted:

1. Photocopy of Form 16 affixed with seal & signature or Digital Signature or Final Tax computation sheet, from the previous employer along with a declarat
2. The Income after Sec 10 exemption, Professional Tax / Provident Fund/ VPF and Income tax deducted, will be considered along with the current employme

3. Where the previous employer has granted Deduction’s for Investments made, including Housing Loan interest deduction / Other Income reported – proofs

Tax Treatment:

Previous employment income, as per supporting, will be accounted for computing the tax liability for the year. While generating the Form16, the previous emplo
department. You are expected to consolidate multiple employment details, while filing your individual returns.

As per circular F.No.SW/09/03/2002-DIT(S)-798 dated 13/4/04 issued by the Directorate of Income Tax (Systems)

Page 8 of 40
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED
Section 192(2) of Income Tax Act, 1961 allows an employee who had more than one employer in financial year to furnish details of his sala
employer for the purpose of deduction of correct tax at source by the second employer. The relevant provisions required that in such a case
TDS returns. At present, in the TDS return for salary i.e. Form No.24, there is no column for furnishing of particulars of salary received/tax
footnote in the TDS return. However, this cannot be done in electronic TDS return, as data structure does not support provision of any footn
resolved as under;

In cases of employees with more than one employer in a financial year, the deductor need to disclose only the salary paid and TDS made b
he can mention the words "12B' in the Remarks column of Form 24; and

Enclose Form 12B along with Form 27A, which the deductor is required to file along with his e-TDS return.

The circular clearly states that only current employer’s income and tax details should be shown in Form 24. Since Form 24 is an aggregation of Form 16s issued
the tax liability for the full year, the previous employment income and tax will be accounted for. The same practice was followed since FY 2005-06.

Following will be disallowed:

1) Only Form 12B submitted will not be considered 3) Tax computation with projections will not be considered
2) Only payslips will not be considered 4) Tax computations of the current year only will be considered

80G - Donations benefits has to be claimed by Empoyee while filing ind

Circular No. 1/2010 [F. No. 275/192/2009 IT(B)], dated 11-1

G. Section 80G provides for deductions on account of donation made to various funds, charitable organizations etc. Generally no deduction should be allowed by
The tax relief on such donations as admissible under section 80G of the Act, will have to be claimed by the taxpayer in the return of income. However in cases w
Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund through their respective employers, it is not possible for such funds to issue separate certificate t
these funds are in the form of a consolidated cheque. An employee who makes donations towards these funds is eligible to claim deduction under section 80G. I
admissible under section 80G on the basis of the certificate issued by the Drawing and Disbursing Officer (DDO)/Employer in this behalf - Circular No. 2/2005, d

Page 9 of 40
of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED
Deduction through salary for parents in law is not eligible as
Limited to Rs.25,000/- in case of individual, spouse & per IT Act
children

Limited to Rs.50,000/- in case of individual, spouse, children

and parents below 60 years
Late payment charges and service tax will not qualify for
Limited to Rs.60,000/- in case of individual, spouse, children the benefit
and any one parent above 60 years

Limited to Rs.50,000/- for all senior citizens

Form 10 IA will not be considered, if the expiry date is

No benefit if disability is < 40%
before April 1, 2018. Handicapped dependant in his
Rs.75,000/- if disability is > 40% & <=80% Rs.12,5000/- if
individual returns should ensure that he is not claiming the
disability is >80%
benefit u/s 80U.

Form 10-I will not be considered, if the expiry date is before

Rs.10,0000/- or actual expenditure whichever is lower.
April 1, 2018. Actual expenditure bills also to be
Further the deduction amount will be reduced from the
supported/submitted to claim the benefit along with the
amount recovered from the insurer or from the employer
Form 10-I

No capping of maximum limit

Certificate of payment due, will not be considered as proof

of payment.

Actual interest paid by the employee during the financial

year is allowed in full as deduction

No benefit if disability is < 40%

Form 10 IA will not be considered, if the expiry date is
Rs.75,000/- if disability is > 40% & <=80% Rs.12,5000/- if
before 1 April 2018
disability is >80%
Page 10 of 40
of Submission Guidelines for FY 2018-19
No benefit if disability is < 40%
TAX BENEFIT FOLLOWING
Form 10 IA willWILL BEconsidered,
not be DISALLOWED if the expiry date is
Rs.75,000/- if disability is > 40% & <=80% Rs.12,5000/- if
before 1 April 2018
disability is >80%

Maximum deduction is allowed under this section is within This benefit can be claimed only post complete utilization of
the overall Sec 80CCD1B limit of Rs.50,000/- INR 1,50,000 eligible for deduction under the Sec 80C.

Capped to a maximum of Rs.20,0000/- only i.e. total amount

allowed for a property (Self and Let out both together) is
Rs.20,0000/- If self-occupied benefit and HRA is claimed for the same
period, in the same city, then HRA benefit is disallowed for
the overlapping period
Loan taken before 01/04/1999, interest restricted to
Rs.30,000/-

Lender PAN should be mandatory to get the tax benefit

Tax benefit will be disallowed for non-availability of Lender
PAN. System will not allow to save the housing loan details
if the lender PAN is not available

Housing Loan interest taken for renovation/repairs restricted Bank statement showing only EMI deduction will be
to Rs.30,000/- disallowed.

If property is not occupied within 5 years of loan sanction Interest benefit cannot be claimed, unless the property is in
date, benefit is restricted to Rs.30,000/- possession on or before March 31, 2018

Pre-EMI interest (EMI paid before occupation of the house) is Only one self occupied property is considered for tax benefit
deductible in 5 equal instalments starting from the year on interest paid. If multiple properties, claim only one under
when the construction is completed or property is acquired self-occupied and the rest under let-out

Sanction amount > 35 lakhs and the value of such property

exceeds 50 lakhs, benefits are not allowed under this
Maximum deduction u/s 80EE is allowed Rs. 50,000/-. If the section. This section is effective if the loan is sanctioned in
interest amount is less than 50,000/-, then the balance the FY 2016-17, hence the loan sanction amount prior or
amount is not allow to carry forward to the next financial after to FY 2016-17 will not be allowed to claim the benefit
year. under this section.

Bank statement showing only EMI deduction will be

disallowed

Page 11 of 40
of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED

Interest benefit cannot be claimed, unless the property is in

Capped to a maximum of Rs.2,00,000/- only i.e. Total possession on or before March 31, 2018
amount allowed for a property (Self and Let out both
together) is Rs.2,00,000/-.

Computation of net loss without considering Notional Rental

Income (market fair rental value) will be disallowed

Loan taken before 01/04/1999, interest restricted to

Rs.30,000/-
Tax benefit will be disallowed for non-availability of Lender
PAN. System will not allow to save the housing loan details
if the lender PAN is not available

Page 12 of 40
of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED
Late payment fees will not be considered

Maximum deduction is allowed under Sec-80C (including

80CCC) is Rs.1,50,000/-

Policy for parents are disallowed

Maximum deduction is allowed under Sec-80C (including

Do not attach payslips or Tax computation sheets as proofs
80CCC) is Rs.1,50,000/-

Late payment fees will not be considered

Policy for parents are disallowed

Maximum deduction is allowed under Sec-80C (including
80CCC) is Rs.1,50,000/-

Future period benefits will not be provided, if declaration /

previous year receipts is not submitted. Proposal Receipt
will be disallowed

Maximum deduction is allowed under this scheme is Counterfoil alone does not constitute as proof. Passbook is
Rs.1,50,000/- per Account mandatory

Maximum deduction is allowed under this scheme is Counterfoil alone does not constitute as proof. Passbook is
Rs.1,50,000/- per PPF Account mandatory

Page 13 of 40
of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED

Maximum deduction is allowed under Sec-80C (including Current year certificates do not qualify for interest benefit.
80CCC) is Rs.1,50,000/- Should be submitted under NSC

NSC Interest declared will also be accounted as “Other Certificates in the name of spouse, children and parents are
Income” and taxed disallowed

Previous year certificates do not qualify. Should be

submitted against NSC Interest only as per the guidelines
Maximum deduction is allowed under Sec-80C (including
80CCC) is Rs.1,50,000/-
Certificates in the name of spouse, children and parents are
disallowed

Certificates in the name of spouse, children and parents are

disallowed

Maximum deduction is allowed under Sec-80C (including

80CCC) is Rs.1,50,000/- Payment Receipts or copy of cheque alone does not
constitute as proof. Photocopy of certificate / bond is
mandatory

Maximum deduction is allowed under Sec-80C (including

Future period benefits will not be provided.
80CCC) is Rs.1,50,000/-

Certificates in the name of spouse, children and parents are

Maximum deduction is allowed under Sec-80C (including disallowed
80CCC) is Rs.1,50,000/-

Future period benefits will not be provided.

Page 14 of 40
of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED

Certificates in the name of spouse, children and parents are

disallowed
Maximum deduction is allowed under Sec-80C (including
80CCC) is Rs.1,50,000/-

Term less than 3 years is not eligible for benefit

Donations, Capitation fees, development fees and other

fees are not allowed
Maximum deduction is allowed under Sec-80C (including
80CCC) is Rs.1,50,000/-

Future period benefits will not be provided.

Maximum deduction is allowed under Sec-80C (including

Certificate in the name of spouse / children disallowed
80CCC) is Rs.1,50,000/-

Page 15 of 40
of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED

Certificates in the name of spouse, children and parents are

Maximum deduction is allowed under Sec-80C (including
disallowed. Monthly recurring deposit with Post office is not
80CCC) is Rs.1,50,000/-
eligible for benefit

Maximum deduction is allowed under Sec-80C (including Bank statement showing only EMI deduction will be
80CCC) is Rs.1,50,000/- disallowed

Maximum deduction is allowed under this section is within You can claim this only post utilizing INR 1,50,000 under
the overall Sec 80C limit of Rs.1,50,000/- Sect 80C

Tax Benefit will not be extended, If the gross total income

Amount of deduction is at 50% of amount invested in equity exceeds Rs.12 lakhs;
shares. However, the amount of deduction under this
provision cannot exceed Rs. 25,000 Investment made in companies other the listed.

The assessee is a new retail investor - a) any individual who
has not opened a demat account and has not made any
transactions in the derivative segment as on the date of
notification of the Scheme;
(b) any individual who has opened a demat account before
the notification of the Scheme but has not made any
transactions in the equity segment or the derivative segment
till the date of notification of the Scheme,
Deduction under this section shall be allowed if the purchase
date is within the Financial Year 2015-16 and 2016-17
No deduction under this section shall be allowed from the
FY 2017-18. However an assessee who has claimed
deduction under this section for Assessment Year 2017-18
(FY 2016-17) and earlier Assessment Year shall be allowed
deduction under this section till the Assessment Year 2019-
20 (FY 2018-19).
Hence, deduction under this section shall be allowed if the
purchase date is within the Financial Year 2015-16 and
2016-17.

Page 16 of 40
of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED
New section 80TTB has been introduced to allow a deduction
upto Rs 50,000/- in respect of interest income from deposits
held by senior citizens. However, no deduction under section
80TTA shall be allowed in these cases. Interest from savings
account declared will also be accounted as “Other Income”.
Specified income is any of the following income in
Interest from non savings account will be disallowed
aggregate:
Interest on bank deposits (savings or fixed);
Interest on deposits held in co-operative society engaged in
the business of banking including co-operative land
mortgage bank or a co-operative land development bank;or
Interest on post office deposits

Maximum deduction is allowed under Sec-80TTA is

Rs.10,000/-
Interest from non savings account will be disallowed
Interest from savings account declared will also be
accounted as “Other Income”

Previous Employment Details

cial year (April 2018 – March 2019) and whose Date of Joining is after 1st April 2017

ngs earned till the Date of leaving for the current financial year (from April 2018 onwards) including perquisites after deducting section 10 exemptions.

sheet, from the previous employer along with a declaration in Form 12B duly signed by the employee.
cted, will be considered along with the current employment income, to arrive at net tax liability for the year 2018-2019.

oan interest deduction / Other Income reported – proofs will have to be re-submitted to the current employer along with the IPSF.

e year. While generating the Form16, the previous employment details will be removed. This treatment is supported by the below circular from the IT
eturns.

f Income Tax (Systems)

Page 17 of 40
of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED
ne employer in financial year to furnish details of his salaries and TDS from the first employer in Form 12B(supported by relevant proofs) to the second
oyer. The relevant provisions required that in such a case, the second employer may deduct tax at source at a lower rate and enclose Form 12B with his
olumn for furnishing of particulars of salary received/tax deducted by the previous employer. Previously, the deductors used to furnish these details as a
as data structure does not support provision of any footnote.The matter was referred to the CBDT. The CBDT has clarified that such problems can be

tor need to disclose only the salary paid and TDS made by him in the Form 24 being filed by him. In case this amounts to deduction at a lower rate, then

with his e-TDS return.

24. Since Form 24 is an aggregation of Form 16s issued, Form 16 will display only the current employer’s income and tax. However, while computing
me practice was followed since FY 2005-06.

5) Previous years Tax computations will not be considered

efits has to be claimed by Empoyee while filing individual returns

. 1/2010 [F. No. 275/192/2009 IT(B)], dated 11-1-2010

zations etc. Generally no deduction should be allowed by the D.D.O. from the salary income in respect of any donations made for charitable purposes.
the taxpayer in the return of income. However in cases where employees make donations to the Prime Minister’s National Relief Fund, the Chief
not possible for such funds to issue separate certificate to every such employee in respect of donations made to such funds as contributions made to
e funds is eligible to claim deduction under section 80G. It is, hereby, clarified that the claim in respect of such donations as indicated above will be
er (DDO)/Employer in this behalf - Circular No. 2/2005, dated 12-1-2005.

Page 18 of 40
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED
Original Rent Receipts one for each (Month / Quarter / Year) pertaining to current financial year
(April 2018 to March 2019). Receipts should be submitted irrespective of the rent amount.
(even if the rent paid is less than INR 3000/-). Effective FY 2018-19, rental declaration
forms will not be accepted.
Rent Receipt should contain below mentioned mandatory details:
Rent paid for the complete period
Name, signature and complete postal address of landlord
Complete postal address of the property
PAN of Landlord (in case rent is > Rs.8333/- per month)
Revenue stamp to be affixed (Not mandatory for Karnataka)

Employees, who have joined the company in between the year i.e. after April 1, 2018, should
submit Rent Receipt only for the period with the current employer (from Date of Joining till the
proof submission month)

House Rent Rental agreement is mandatory for rent amount equal or greater than Rs 10,000/-
10 (13A)
Allowance

The PAN of landlord is mandatory for rent amount greater than INR 8333 per month. This will be
validated with income tax database and approved accordingly.

PAN copy of landlord to be submitted. This is not mandatory and will be referred in case of a typo
error while entering the PAN details. The benefit will be provided accordingly.

The complete postal address of the property is mandatory to be entered in the format house
number/colony/district/city/state/pin code and same will be validated against the details provided in
the uploaded proofs.

Relationship with the landlord to be provided mandatorily for availing the benefit of any rental
amount

HRA Declaration for future months to be submitted. Format generated online

of Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED
Least of the below is exempt for Income Tax: Rent Agreement alone without rent receipts

If Loss on self-occupied property is claimed for the same

period and same city, then HRA rent is disallowed for the
overlapping period

Maintenance and electricity charges are not considered.

Only actual rent paid will be considered

Actual HRA earned by the assessee for the year.

Non availability of Landlord PAN, benefit will be rejected
Rent paid minus 10% of Basic salary

40% of Basic or 50% of Basic (in case of Metro cities)

If PAN sumbitted in the portal in valid and photo copy of

landlord PAN not submitted benefits will be disallowed

Incomplete address without the house

number/colony/district/city/state/pin code to be disallowed

If the relation with the Landlord is selected as "Relative" the

benefit will be disallowed and same benefit can be claimed
while filing individual income tax return
Photocopies of rent receipts
 Investment Proof Submission Guidelines for
SECTIONS COMPONENT PROOF TO BE SUBMITTED
Benefit will be provided only for loans obtained from Housing Finance Company / Banks

Provisional certificate with breakup of interest and principal for current financial year, along with
complete postal address of the property

PAN and complete postal adress of the Housing Finance Company / Banks is mandatory
Loss on Self-
Occupied
house
Sec 24
property In case of Joint loan, declaration specifying the % of benefit claimed by the individuals
(Housing loan
interest)

Possession Letter from Builder or through self declaration from the employee is mandatory as per
IT circular no 8/2012, dated 5th October 2012

Form 12 C or Computation of Loss / Income as per rule is mandatory. Template attached / available
on IPSF Online calculations

The complete postal address of the property is mandatory to be entered in the format house
number/colony/district/city/state/pin code and same will be validated against the details provided in
the uploaded proofs.

Loan should be sanctioned during the financial year 2016-17

Loan Sanctioned amount does not exceed Rs.35 lakh
Additional Value of residential property does not exceed Rs.50 lakh
80EE Housing Loan The assessee does not own any other residential house property on the date of sanction of
benefit loan. Section 80EE benefit is applicable for self occupied property

Provisional certificate pertaining to current financial year (April 2018 – March 2019) with breakup of
interest and principal from the Housing Finance Company / Bank. PAN and address of the Bank
should be provided.

In case of Joint loan, declaration specifying the % of benefit claimed by the individual
 Investment Proof Submission Guidelines for
Form 12 C or Computation of Loss / Income as per rule is mandatory. Template attached / available
on IPSF Online calculations

Loss /
Income on If the premises is left vacant / occupied by family, as per Section23 (1) (c), Notional Rental Income
Let out House has to be arrived and then, the net loss has to be arrived.
Sec 24
Property
(Housing loan Notional rent to be taken as municipal valuation or the rent which similar property in the same
interest) locality would fetch, whichever is higher. However, if standard rent is fixed for the property, then
notional rent cannot exceed the standard rent

The benefit will be rejected, if rental income is not declared as mentioned above.

Municipal tax payment receipt/ rental agreement supporting the notional rental/ actual
rental income declared, is mandatory.
PAN of loan lender / bank is mandatory to furnish to claim the housing loan benefit.
oof Submission Guidelines for FY 2018-19
TAX BENEFIT FOLLOWING WILL BE DISALLOWED
Capped to a maximum of Rs.2,00,000/- only i.e. Total
amount allowed for a property (Self and Let out both
together) is Rs.2,00,000/-. If self-occupied benefit and HRA is claimed for the same
period, in the same city, then HRA benefit is disallowed for
Loan taken before 01/04/1999, interest restricted to the overlapping period
Rs.30,000/-

Lender PAN should be mandatory to get the tax benefit

Tax benefit will be disallowed for non-availability of Lender
PAN. System will not allow to save the housing loan details
if the lender PAN is not available

Housing Loan interest taken for renovation/repairs restricted Bank statement showing only EMI deduction will be
to Rs.30,000/- disallowed.

If property is not occupied within 5 years of loan sanction Interest benefit cannot be claimed, unless the property is in
date, benefit is restricted to Rs.30,000/- possession on or before March 31, 2018

Only one self occupied property is considered for tax benefit

on interest paid. If multiple properties, claim only one under
self-occupied and the rest under let-out

Pre-EMI interest (EMI paid before occupation of the house) is

deductible in 5 equal instalments starting from the year
when the construction is completed or property is acquired.
Incomplete address without the house
number/colony/district/city/state/pin code to be disallowed

Sanction amount > 35 lakhs and the value of such property

exceeds 50 lakhs, benefits are not allowed under this
section. This section is effective if the loan is sanctioned in
Maximum deduction u/s 80EE is allowed Rs. 50,000/-. If the the FY 2016-17, hence the loan sanction amount prior or
interest amount is less than 50,000/-, then the balance after to FY 2016-17 will not be allowed to claim the benefit
amount is not allow to carry forward to the next financial under this section
year.

Capped to a maximum of Rs.2,00,000/- only i.e. Total Bank statement showing only EMI deduction will be
amount allowed for a property (Self and Let out both disallowed
together) is Rs.2,00,000/-.

Interest benefit cannot be claimed, unless the property is in

possession on or before March 31, 2018
oof Submission Guidelines for FY 2018-19

Computation of net loss without considering Notional Rental

Loan taken before 01/04/1999, interest restricted to Income (market fair rental value) will be disallowed
Rs.30,000/-

Tax benefit will be disallowed for non-availability of Lender

PAN. System will not allow to save the housing loan details
if the lender PAN is not available
Lender PAN is mandatory and will be validated against the
lender's name provided to provide the tax benefit
 Previous Employment Earnings

Who is eligible?
Employees who has worked in any other company before joining the current company, within the financial year (April 2018
whose Date of Joining is after 1st April 2018

What is considered Previous Employer Income?

The Income after Sec 10 exemption is considered as Previous Employer Income. This includes all earnings earned till the Da
current financial year (from April 2018 onwards) including perquisites after deducting section 10 exemptions.

Proof to be submitted:
1. Photocopy of Form 16 affixed with seal & signature or Digital Signature or Final Tax computation sheet, from the pre
with a declaration in Form 12B duly signed by the employee.
2. The Income after Sec 10 exemption, Professional Tax / Provident Fund/ VPF and Income tax deducted, will be conside
current employment income, to arrive at net tax liability for the year 2018-2019.
3. Where the previous employer has granted Deduction’s for Investments made, including Housing Loan interest deducti
reported – proofs will have to be re-submitted to the current employer along with the IPSF.

Tax Treatment:
Previous employment income, as per supporting, will be accounted for computing the tax liability for the year. While genera
previous employment details will be removed. This treatment is supported by the below circular from the IT department. Yo
consolidate multiple employment details, while filing your individual returns.
As per circular F.No.SW/09/03/2002-DIT(S)-798 dated 13/4/04 issued by the Directorate of Income Tax (Sys
Section 192(2) of Income Tax Act, 1961 allows an employee who had more than one employer in financial year to furnish d
and TDS from the first employer in Form 12B(supported by relevant proofs) to the second employer for the purpose of dedu
source by the second employer. The relevant provisions required that in such a case, the second employer may deduct tax
rate and enclose Form 12B with his TDS returns. At present, in the TDS return for salary i.e. Form No.24, there is no colum
particulars of salary received/tax deducted by the previous employer. Previously, the deductors used to furnish these detail
TDS return. However, this cannot be done in electronic TDS return, as data structure does not support provision of any foot
referred to the CBDT. The CBDT has clarified that such problems can be resolved as under;

In cases of employees with more than one employer in a financial year, the deductor need to disclose only the salary paid
in the Form 24 being filed by him. In case this amounts to deduction at a lower rate, then he can mention the words "12B'
of Form 24; and

Enclose Form 12B along with Form 27A, which the deductor is required to file along with his e-TDS return.

The circular clearly states that only current employer’s income and tax details should be shown in Form 24. Since Form 24 i
Form 16s issued, Form 16 will display only the current employer’s income and tax. However, while computing the tax liabili
previous employment income and tax will be accounted for. The same practice was followed since FY 2005-06.

Following will be disallowed:

1) Only Form 12B submitted will not be considered 3) Tax computation with projections will not be considered
2) Only payslips will not be considered 4) Tax computations of the current year only will be considered
5) Previous years Tax computations will not be considered
 Section B Chapter VI A SECTION
1 Medical Insurance 80D

2 Medical Treatment for Handicapped Dependent 80DD

3 Medical Treatment for Specified Disease 80DDB

4 Interest on Education Loan 80E

5 Donations to Certain Funds, Charitable Institution 80G

etc.,

6 Deduction in respect of Rents Paid 80GG

7 Permanent Physical Disability including Blindness 80U

8 Additional NPS Contribution 80CCD1B

Section C Section 80C/80CCE SECTION
8 Pension Policy - 80CCC 80CCC

9 Provident Fund - PF 80C

10 Voluntary Provident Fund - VPF 80C

11 Life Insurance - LIC 80C

12 Public Provident Fund - PPF 80C

13 National Savings Certificate - NSC 80C

14 Infrastructure Bonds - IBOND 80C

15 Tution Fees - TF 80C

16 Mutual Fund - MF 80C

17 Equity Linked Savings Scheme - ELSS 80C

18 Unit Linked Insurance Plan - ULIP 80C

19 Sukanya Samriddhi Scheme 80C

20 5-Yr bank fixed deposits (FDs) 80C

21 Senior Citizen Savings Scheme 2004 (SCSS) 80C

22 5-Yr post office time deposit (POTD) scheme 80C

23 NABARD rural bonds 80C

24 Interest on NSC 80C

25 Stamp Duty & Registration Charges 80C

26 Home Loan Principal Repayment 80C

Section D Housing Loan Details SECTION

27 Self Occupied Property 24
28 Let Out Property 24
 Dependents Eligible for Tax Benefit
Individual, Spouse, Children & Parents

Individual, Spouse, Children, Parents, Dependant Brothers &

Sisters
Individual, Spouse, Children, Parents, Dependant Brothers &
Sisters

Individual, Spouse & Children

Individual

Individual

Individual

Individual
Dependents Eligible for Tax Benefit
Individual

Individual
Individual

Individual, Spouse & Children

Individual, Spouse & Children

Individual

Individual

Upto 2 Children of an individual

Individual

Individual

Individual, Spouse & Children

Daughter

Individual

Individual

Individual

Individual
Individual

Individual

Individual

Dependents Eligible for Tax Benefit

Individual
Individual
 Comment
1. Rs.25000- In case of Individual, Spouse & Children
2. Additional benefit of 25000/- in case of parents below 65
years and Rs.30000 in case of parents above 65 years
(Senior citizens)
1. Limited to Rs.75000 (<=80% disability)
2. Rs.1.25Lakh (>80% disability)
Expenditure must be actually incurred by resident assessee
on himself or dependant relative for medical treatment of
specified disease or ailment. The diseases have been
specified in Rule HDD. A certificate in form 10I is to be
furnished by the assessee from any registered doctor
1. Interest paid for the first 8 years on loans taken for
Higher Education such as Engineering / Medical etc
2. Eligible if loan is availed by the employee for self
spouse & children for pursuing higher education
3. Loans availed from Financial Institution / Bank only, is
eligible
The various donations specified in Sec.80G are eligible for
deduction upto either 100% or 50% with or without
restriction as provided in Sec 80G
Deduction available is the least of

1) Assessee or his total spouse or minor child should not

own residential accommodation at the place of
employment.

(i) Rent paid less 10% of total income

(ii) Rs. 2,000 per month
(iii) 25% of total income

2) He should not be in receipt of house rent allowance.

3) He should not have a self occupied residential premises

in any other place

1. Limited to Rs.75000 (<=80% disability),

2. Rs.1.25 lakh (>80% disability
1. Limited to Rs.50000

Pension Funds – Section 80CCC: This section – Sec 80CCC –

stipulates that an investment in pension funds is eligible for
deduction from your income. Section 80CCC investment
limit is clubbed with the limit of Section 80C – it maeans
that the total deduction available for 80CCC and 80C is Rs.
1.5 Lakh.This also means that your investment in pension
funds upto Rs. 1.5 Lakh can be claimed as deduction u/s
80CCC. However, as mentioned earlier, the total deduction
u/s 80C and 80CCC can not exceed Rs. 1.5 Lakh.

Provident Fund (PF) & Voluntary Provident Fund (VPF: PF is

automatically deducted from your salary. Both you and your
employer contribute to it. While employer’s contribution is
exempt from tax, your contribution (i.e., employee’s
contribution) is counted towards section 80C investments.
You also have the option to contribute additional amounts
through voluntary contributions (VPF). Current rate of
interest is 8.5% per annum (p.a.) and is tax-free.

Life Insurance Premiums: Any amount that you pay towards

life insurance premium for yourself, your spouse or your
children can also be included in Section 80C deduction.
Please note that life insurance premium paid by you for your
parents (father / mother / both) or your in-laws is not
eligible for deduction under section 80C. If you are paying
premium for more than one insurance policy, all the
premiums can be included. It is not necessary to have the
insurance policy from Life Insurance Corporation (LIC) –
even insurance bought from private players can be
considered here.

1. An individual can open public provident fund account in

his own name or in the name of minor of whom he is the
guardian. One can get the deduction u/s 80c, deposit in his
own account, or his/her spouse or in the account of his /her
children.

2. Public Provident Fund (PPF): Among all the assured

returns small saving schemes, Public Provident Fund (PPF) is
one of the best. Current rate of interest is 8% tax-free and
the normal maturity period is 15 years. Minimum amount of
contribution is Rs 500 and maximum is Rs 1,50,000. A point
worth noting is that interest rate is assured but not fixed.

National Savings Certificate (NSC): National Savings

Certificate (NSC) is a 6-Yr small savings instrument eligible
for section 80C tax benefit. Rate of interest is eight per cent
compounded half-yearly, i.e., the effective annual rate of
interest is 8.16%. If you invest Rs 1,000, it becomes Rs
1601 after six years. The interest accrued every year is
liable to tax (i.e., to be included in your taxable income) but
the interest is also deemed to be reinvested and thus
eligible for section 80C deduction.

Infrastructure Bonds: These are also popularly called Infra

Bonds. These are issued by infrastructure companies, and
not the government. The amount that you invest in these
bonds can also be included in Sec 80C deductions.

1. Only amount mentioned as ‘Tuition Fee’ in the fee receipt

will be considered for deduction.

2. Donations, Capitation fees, Computer fees, Uniform fee,

Sports fee etc., are not allowed.

3. Tuition fees paid supported by receipts issued by the

school, college, university or educational institution.

4. Tuition Fee paid is eligible for deduction u/s 80C for

maximum of two children.
There are some mutual fund (MF) schemes specially created
for offering you tax savings, and these are called Equity
Linked Savings Scheme, or ELSS. The investments that you
make in ELSS are eligible for deduction under Sec 80C.

Equity Linked Savings Scheme (ELSS): There are some

mutual fund (MF) schemes specially created for offering you
tax savings, and these are called Equity Linked Savings
Scheme, or ELSS. The investments that you make in ELSS
are eligible for deduction under Sec 80C.

ULIP should be taken on his own life, life of the spouse or

any child.

1. An individual can open Sukanya Samriddhi Scheme

account in his daughter name. One can get the deduction
u/s 80C.

5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits

(FDs) of scheduled banks with tenure of 5 years are also
entitled for section 80C deduction.

Senior Citizen Savings Scheme 2004 (SCSS): A recent

addition to section 80C list, Senior Citizen Savings Scheme
(SCSS) is the most lucrative scheme among all the small
savings schemes but is meant only for senior citizens.
Current rate of interest is 9% per annum payable quarterly.
Please note that the interest is payable quarterly instead of
compounded quarterly. Thus, unclaimed interest on these
deposits won’t earn any further interest. Interest income is
chargeable to tax.

5-Yr post office time deposit (POTD) scheme: POTDs are

similar to bank fixed deposits. Although available for varying
time duration like one year, two year, three year and five
year, only 5-Yr post-office time deposit (POTD) – which
currently offers 7.5 per cent rate of interest –qualifies for
tax saving under section 80C. Effective rate works out to be
7.71% per annum (p.a.) as the rate of interest is
compounded quarterly but paid annually. The Interest is
entirely taxable.

NABARD rural bonds: There are two types of Bonds issued

by NABARD (National Bank for Agriculture and Rural
Development): NABARD Rural Bonds and Bhavishya Nirman
Bonds (BNB). Out of these two, only NABARD Rural Bonds
qualify under section 80C.
1. NSC interest should be taxed under the head “Other
Income”.

2. NSC Interest Rates

NSC Purchased after 01/04/2010

First Year - 8.16%

Second Year - 8.83%
Third Year - 9.55%
Fourth Year - 10.33%
Fifth Year - 11.17%
Sixth Year - 12.08%

Stamp Duty and Registration Charges for a home: The

amount you pay as stamp duty when you buy a house, and
the amount you pay for the registration of the documents of
the house can be claimed as deduction under section 80C in
the year of purchase of the house.

Home Loan Principal Repayment: The Equated Monthly

Installment (EMI) that you pay every month to repay your
home loan consists of two components – Principal and
Interest.The principal component of the EMI qualifies for
deduction under Sec 80C. Even the interest component can
save you significant income tax – but that would be under
Section 24 of the Income Tax Act. Please read “Income Tax
(IT) Benefits of a Home Loan / Housing Loan / Mortgage”,
which presents a full analysis of how you can save income
tax through a home loan.

If employee is staying in an own house in which he has

availed the Housing Loan benefit, then it will be treated as
“Self Occupied Property”.

Following are the maximum limit for “Self Occupied

Property”:

In case of self-occupied property Interest on borrowed

capital is allowed up to Rs.2,00,000/- and no other
deduction is allowed. The acquisition or construction of the
house should be completed within three years from the
end of the financial year in which the loan was obtained.
However, it is made mandatory that the associate shall
provide a certificate from the lender specifying the interest
payable and that the interest is payable towards the capital
borrowed for construction or acquisition of a house.

Interest on borrowed capital is allowed only after

construction or purchase of a house property is completed.
However 1/5th of pre-construction interest can be added to
the current year interest payment. In any case the
maximum interest to be claimed in a given year can’t
exceed Rs.2,00,000/-. If capital is borrowed for
repairs/renewal/reconstruction then the maximum amount
of deduction is restricted to Rs 30,000/-
In respect of a let out property it is assumed that the
employee has property & has given for rent to some one &
receiving the rental income.

Capped to a maximum of Rs.200000/- only i.e. Total

amount allowed for a property (Self and Let out both
together) is Rs.200000/-

To claim the deduction in respect of housing loan interest,

the employee should furnish the “Housing Loan Interest
Provisional Certificate” from the bank or a lender that clearly
specifying the amount of interest payable by such employee
for the purpose of construction or acquisition of the
residential house.

In case of let out property employee also needs to submit

the “Let Out” computation sheet