Income Tax Proof Documents Submission Guidelines (2018-19)

© 2017 IBM Corporation

 Income Tax Act Sections and Limits (2018-19)
Section Description Exemption/
Deduction/ Limit
80C+80CCC Components under Section 80 C Deductions 1,50,000
+ Contributions to Pension Funds
80D Medical Insurance Premium* 1,00,000
80DD Deduction for Dependents with Disability* 75,000/1,25,000
80DDB Deduction for Medical Treatment (Critical 40,000/1,00,000
Illness)*
80U Deduction for Self Disability* 75,000/1,25,000
80E Repayment of Interest on Loan for Higher 100% on Interest
Education*
80TTA Deductions for Interest from SB Account* 10,000
80CCG Contribution to Rajiv Gandhi Equity Savings 25,000
Scheme* (Applicable only if invested in FY
2016-17)
80CCD 1(B) National Pension Scheme 50,000

Note: * Subject to conditions specified in the IT Act and IT rules in Force to be satisfied.
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 Important Budget Changes for FY 2018-19

 The budget announced a standard deduction of Rs.40,000 for salaried

employees, but it also did away with the tax exempt Conveyance allowance
of Rs.19,200 and medical reimbursement of Rs.15,000.

 The deduction limit for medical expenses for specified critical illnesses under
section 80DDB, has been hiked to Rs.1 lakh for all senior citizens from
Rs.60,000 (in case of senior citizens) and Rs.80,000 (for super senior
citizens).
(Neurological Diseases, Parkinson’s Disease, Malignant Cancers, AIDS, Chronic Renal
failure, Hemophilia, Thalassaemia)

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 Income Tax Documents Requirements Guidelines (2018-19)
S.N Income Tax Component Guideline
o
1 Tax Slabs Annual income Tax Rate
Upto Rs 2,50,000 Nil
Rs 2,50,001 – Rs 5,00,000 5%
Rs 5,00,001 – Rs 10,00,000 20 %
Rs10,00,001 & above 30%

Education Cess : 4 percent on Tax & Surcharge.

A tax relief of Rs. 2500 to every person with Taxable Income up to Rs.3,50,000 is applicable.
Surcharge – Taxable Income between 50 Lakhs and 1 Crore – 10% on Tax
Taxable Income above 1 Crore – 15% on Tax

2 Previous employment Mandatory documents to be submitted:

details a) Soft copy of “Form 16” (For period in financial year 2018-19) or “Original Final Tax
Computation Statement copy for the current financial year” (Attested) by the authorized
signatory on company letter head of the previous organization
b) Duly filled and signed scanned copy of “Form 12B”.

Note: Please note that the employees declaring previous employment details are
required to provide proofs for investments made under Chapter VIA (80C and 80
others)and Home loan proofs submitted with previous employer will have to be
submitted again in IBM to avail the tax rebate.

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 3. House Rent As Per IT Rule HRA exemption will be calculated as below:-
Allowance (HRA) HOUSE RENT ALLOWANCE EXEMPT U/S.10(13A) – Read with Rule 2A of IT Rules 1962
Sec-10
a) Actual HRA received : Rs.xxxx
b) Rent paid in excess of 10% of Basic Salary : Rs.xxxx
c) 50% of Basic Salary in Metro Cities or
40% of Basic Salary in other cities : Rs.xxxx

Least of a), b), c) will be considered for exemption.

Note : Metro cities as per Income Tax Act-1961 are Mumbai, Delhi, Kolkata and Chennai.
Landlord PAN Number and copy of PAN is a must to claim HRA.
3a. House Rent Mandatory documents to be submitted as per IBM policy:-
Allowance (HRA) a) The First month (Apr-2018 or month of joining) & Latest rent (preferably) paid receipt in Original
(Cont’d next page..) scanned.
b) A scanned copy of the valid rental agreement with the Landlord.
c) Duly filled and signed HRA Declaration in scanned form available in the portal/attached declaration
form.
d) Copy of the PAN of the landlord. Name in the Rental Agreement should match the name in PAN
Card.
e) The receipt should have details like Name, Address of rented accommodation, rent amount both in
figures and words, rent paid for the month and signature of the Landlord.
f) If employee has shifted houses or has any change in rent amount, then one rent receipt from
previous/current Landlord as applicable (the rent receipt for last month before change) and copy of
the old agreement is also required. PAN card copy of both the Landlords are required to be provided.

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 S.No Income Tax Component Guidelines
3b. House Rent Allowance Note:-
(HRA)  The rental agreement should necessarily cover the period for which the exemption is
being claimed for.
 Copy of PAN (Permanent Account Number)of Landlord is mandatory irrespective of the
Rent amount
 If in the agreement there is Rent and Maintenance mentioned; only RENT will be
considered.
 If the agreement is not in the name of employee, Exemption will not be given.
 For ONSITE employees, the rent receipts shall be considered only for their period of stay
in India.
 Exemption will be given only for the house rented in the place of work and not for houses
in other locations.

Note : All the supporting Forms/Declarations are also available in relevant Forms/Declaration link
in IT-Proof application .Download, fill and upload as required in duly filled and signed soft copy
form for respective proof items.
S.No Income Tax Component Guidelines
4 Sec-80CCG Contributions to Rajiv Gandhi Equity Savings Scheme(RGESS).
Applicable only if you have invested in FY 2016-17 and continued investing in FY 2018-19
also.
Mandatory documents to be submitted.
Demat account statement soft copy and a scanned duly filled Declaration fulfilling the terms and
conditions of the scheme.
Note: Employee will be allowed a Deduction of fifty percent of the amount invested in Listed
equity shares to the extent such deduction does not exceed twenty five thousand rupees.

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 S.No Income Tax Component Guidelines

5 Sec-80TTA Interest received from Savings Bank account.

6 Sec 80C
Sukanya Samridhdhi Scheme
Mandatory Documents to be submitted.
Duly filled and signed scanned declaration form needs to be submitted. Note: The same Interest
amount would be considered as income also under “ Other Income (Unspecified)” Head.
This would be Taxed at the Highest Tax rate applicable
Mandatory Documents to be submitted
a) Scanned copy of the receipt along with copy of Passbook
Note : The proof has to be in the name of employee and Dependent daughter

7 Sec 80C Mandatory documents to be submitted:

Children Tuition Fee a) Scanned copy of the receipt issued by the educational institution.
Note
• Deduction will be given only for tuition fees paid during the financial year and not on
development fees, donation & Capitation etc. Exemption can be claimed only for the
tuition fees incurred for 2 children.
• Deduction will be given only for expenditure incurred in India on Full Time
Education.
8 Sec 80C Mandatory documents to be submitted:
NSC a) Scanned copy of the NSC certificate with the details (Certificate number, Purchase
Date, Amount details) must be visible in the copy.
b) Incase of NSC interest declared which was earned on previous NSC investment, then the
same will also be considered as income under “Other Income (Unspecified)” head.

9 Sec 80C Mandatory documents to be submitted:

Post Office Savings Deposit-
Applicable only for 5 year
Term deposit.
a) Soft/scanned copy of deposit receipt
b) Soft/scanned copy of the passbook - front page where details of the depositor are
mentioned and page showing current financial year deposits and balance as on that
date.
c) If balance is not shown then provide soft/scanned copies of all pages where
investment between April 2018 and March 2019 is recorded.

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S.N Income Tax Guidelines
o Component
10 Sec 80C - Bank FD Mandatory documents to be submitted:
(Notified tax savings a) Soft copy of certificate from Bank. Fixed deposit in notified tax saving scheme for current Financial year
scheme) will only be considered.
11 Repayment of 1. Principal repayment –Sec 80C
Housing Mandatory documents to be submitted:
Loan(Principal) and Scanned copy of Original provisional certificate duly signed and sealed by the Financial institution (HDFC /
Stamp duty and LIC Housing Finance..etc) by mentioning the break up of Principal and Interest repayment in the Financial
Registration. Year 18-19. In case of loan taken jointly, and the entire Principal and interest repayment is claimed by
(Cont’d next page..) employee, a joint declaration(duly filled and signed scanned copy) to this effect has to be submitted for
claiming 100% Income Tax rebate.
Note: If the Home loan Certificate (For Interest and Principal on Housing Loan) specifically mentions that it
is a computer generated certificate and does not require signatures then employees can upload the
soft copy of the same while submission online. If not ,then the Home loan certificate would have to
be signed and sealed by the issuing bank and upload the scanned copy of same.
Stamp Duty and Registration proofs: Soft/scanned of proof for Stamp duty and registration (if any)
payment or documentary evidence of the expenditure (eg: Receipt, copy of agreement/deed) is to be
produced.
Exemption on the Pre EMI interest paid can be claimed after receiving the possession of the house in
Income or loss on 5 equal installments over a period of 5 successive financial years by adding the same under Interest
House property section of respective housing property type.
computation sheet 2. Interest on Housing Loan –Proofs required(Sec 24)
House property is Self occupied –Scanned copy certificate as mentioned under 'Principal repayment'
section. This is for Interest on Self Occupied Housing property. If the home loan is a joint then a declaration
(As embedded in next slide )should be submitted as duly filled and signed scanned form.
3. Income or Loss on House Property (Proofs required)
Property is Rented -In addition to the above(Bank-Cert) duly filled up and signed copy of Housing Income
computation and a Joint loan declaration form(Attached below)in case of Joint home loan only (in duly filled
and signed scanned form)
Note : Income Tax Exemption on Loss of Housing loan Property inclusive of Self Occupied is restricted to
Rs. 2,00,000. Any loss beyond 2,00,000 needs to be carried forward during Filing of Returns for the year

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S.No Income Tax Component Guidelines
12 Repayment of Housing Loan Note : Employees cannot claim both Interest on housing loan for self occupied property and
(cont’d) HRA exemption in the same city..
Declaration • Employees claiming both HRA exemption and Home Loan Interest exemption for different
Form(HRA-HL) cities, employees need to submit a duly filled and signed soft copy declaration in original.
•In case of joint housing loan, a duly filled and signed declaration in the attached format need
to be uploaded while submission otherwise tax benefit will be given on prorated basis.
Note: 1.Employees having self occupied property and claiming Principal and Interest amount
tax rebate then proofs to be submitted are Original bank certificate copy and a duly filled and
signed soft copy joint loan declaration form only if the property is a Joint loan
2.Employees having Partly/Wholly let out property and claiming for Principal and Interest
amount consideration for tax computation then they need to submit Housing income
computation soft copy, Original bank certificate soft copy and Joint loan declaration duly filled
and signed soft copy(only if the Home loan is a joint one).
3. Interest can be claimed only after property is taken on possession
13 Income From Other Sources Mandatory documents to be submitted:
a) Duly filled and signed soft copy declaration should be submitted for Other income
“Unspecified”.
Note: Amount under “Other Income (Unspecified)” will be considered and will be
considered for Tax computation at the highest rate.
14 Life Insurance Premium-Sec-80C Mandatory documents to be submitted:
a) Soft copies of all the Premium receipts PAID by the employee (in this Financial Year). Incase
any premium is due in January / February/March 2019, then either you can pay the premium
before the cutoff date and produce the proof or the deduction can be availed at the time of filing
your Income Tax return. This is as per the Income Tax provisions.
Electronic soft copy premium receipts will be considered only if it clearly displays the
Self declaration form insurance company details (with Logo), details of the insured and policy details (policy number
etc). Policy Schedule and Policy Status View will not be considered
b) Duly filled and signed soft copy declaration need to be given in the attached format in case
of premium payment made on behalf of dependents and claiming exemption.

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 S.No Income Tax Guidelines
Component
15 Pension Plan -Sec- Mandatory documents to be submitted:
80CCC a) Jeevan Suraksha Or any other scheme u/s 80CCC - Soft copy of the receipt from the Insurance
Company.

16 PPF-Sec 80C Mandatory documents to be submitted:

a) Soft copy of the stamped deposit receipt or Soft copy of Passbook duly attested.

17 ULIP-Sec 80C Mandatory documents to be submitted:

a) Soft copies of all the Premium receipts paid (in this Financial Year 2018-19).
18 Mutual Funds-Sec Mandatory documents to be submitted:
80C a) Soft copy of the challan/receipt for Investments. Electronic statement will be considered only if it
contains details of the Mutual Fund company, scheme, folio number, employees name. Deduction is
available only for ELSS (Tax Saving) schemes of mutual funds.

19 Interest on Mandatory documents to be submitted:

Education Loan-Sec a) INTEREST for the Loan repayment details for the Financial year
80E • Soft copy of Original Certificate (Duly signed & sealed) from the Lending institution for Repayment of
Educational loan). Note : If the Education loan Certificate (For Interest and Principal on Education
Loan) specifically mentions that it is a computer generated certificate and does not require signatures
Self declaration then employees can upload the soft copy of the same while submission. If not ,then the Original
form Education loan certificate would have to be signed and sealed by the issuing bank and upload
scanned copy of same.
• Only Interest is allowed for Income Tax Deduction purposes.
b) Signed soft copy self declaration form
Note This is applicable for the Assessee (employee) Spouse and child. Higher education means - "Full
Time studies for any graduate or post graduate course in Engineering (including technology /
architecture), medicine, management or for post graduate course in applied sciences or pure sciences
including mathematics and statistics."

20 Sec-80DDB (Medical a) Any assesse or dependents suffering from specified diseases and ailments (Viz: Neurological Diseases(>40%
Treatment) Disability), Dementia, Dystonia Musculorum Deformans, Motor Neuron Disease, Ataxia, Chorea, Hemiballismus,
Aphasia, Parkinsons, Malignant Cancers,AIDs(Full Blown), Chronic Renal failure, Hematological disorders,
Hemophilia, Thalassaemia)can claim for tax rebate provided Original medical bills soft copy ,Duly filled and
signed Form-10I (Issued, authorised and certified by Hospital Surgeon/Specialist) and a duly filled and signed
10 IBM Confidential Self-Declaration only if you are claiming on behalf of Dependants should be submitted as valid © 2017 IBMMax
proof. Corporation
deduction allowed is 40000 and in case of senior citizen / Very senior citizen 100000 will be allowed as deduction.
 S.No Income Tax Component Guidelines

Other Deductions Mandatory documents to be submitted:

21 Section 80 U a) Any assessee suffering from a permanent physical disability (including blindness) on
the production of soft copy of medical certificate from Government Hospital in the
prescribed form i.e Form 10I A(Soft copy duly filled and signed) , shall be allowed a
deduction of Rs.75,000. Where such assessee is a person with severe disability, a
deduction of Rs.1,25,000 can be claimed.
22 Section 80 D Mandatory documents to be submitted:
Self declaration a) Soft copy of the premium receipt paid by the employee, issued by the insurer.
b) Self declaration soft copy form duly filled and signed(To claim for investments made on
Medical Insurance dependents) under Sec 80D as attached).
c) Proof for preventive health check ups requires Paid Receipt scanned copy in original
is mandatory (Applicable for self + Parents proofs) and include the amounts under
appropriate 80D line items.
23 Section 80 DD Mandatory documents to be submitted:
a) Deduction regarding maintenance including medical treatment of dependent who is
person with disability. The permanent physical disability or mental retardation of the
dependent relative has to be certified by a physician, surgeon, oculist or practitioners
working in a govt. hospital in the attached Form-10IA. Duly filled and signed soft
copy of original Form-10IA to be uploaded while submission.
b) Duly filled and signed soft copy Self declaration (Same as above for 80D)by employees
duly certifying amount spent on treatment, training or rehabilitation of the
handicapped dependent or the amount paid to LIC/UTI for the policy).
 If the disability is upto 80% then the deduction is 75,000 and if the disability is beyond
80% then the deduction is Rs. 1,25,000.
24 National Pension Scheme Mandatory documents to be submitted
80CCD 1 (B) a) Statement from NSDL or from the Bank reflecting the investment for the Financial Year.
b) If the same is subscribed under Atal Pension Yojana, then the statement from the Bank
showing the investment made for the Financial Year.

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 Important Points to Note
Note 1 : For any investments made in the names of the spouse or child of the employee, the
employee must provide a duly filled and signed Self Declaration soft copy declaring
that the investments are being claimed by employee only and not by spouse/Child of
employee.

Note 2: You can submit one Self Declaration duly filled and signed soft copy form for all tax
components instead of multiple ones by mentioning all the Income Tax components in
one Self declaration form.

Note 3: You can find the all the declaration and relevant Forms in IT Proof Portal
https://ibmitproof.spearglobal.com/downloads.aspx

Note 4 : If investment under National Pension Scheme (NPS) is deducted from FBP thru
payroll you need not submit any proofs or declare in the IT proof tool. The same
would be considered for exemption directly by payroll.

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© 2017 IBM Corporation