Proof Submission Guidelines

SECTIONS COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT

Original Rent Receipts one for each (Month / Quarter ) pertaining to current financial year (Apr 12 to Mar 13) Least of the below is exempt for Income Tax: Rent Receipt should contain Rent paid for the period Name and signature of landlord Complete address of the property PAN of Landlord (in case rent is > Rs.16,667/- per month) Revenue stamp to be affixed (Not mandatory for Karnataka) Employees, who have joined the company in between the year i.e. after 1st Apr 2012, should submit Rent Receipt only for the period with the current employer (from Date of Joining till the proof submission month) Declaration form from the land lord is required incase PAN is unavailable - Format attached HRA Declaration for future months to be submitted. Format attached at the end of the document Photocopy of the receipt and insurance certificate issued by the Insurance Company Receipts should be of the current financial year only (Apr12 Mar13) Receipt / Certificate should specify that benefit eligible u/s 80D (Mediclaim Insurance) 80D Medical Insurance Deduction through salary for parents will be considered. No proof required Only Premium amount is allowed Preventive heath check up is allowed for deduction upto Rs 5,000, within the overall deduction limit. Previous year receipts along with declaration to be submitted, if the policy is due after the proof submission cut-off date Photocopy of certificate (Form - 10 IA)issued by the competent medical authority in a Government Hospital Maintenance specifying the % of disability /Medical Self-declaration mentioning amount spent on treatment, training or rehabilitation of the handicapped treatment of dependent or receipt of the amount paid to LIC/UTI for the policy Handicapped Where condition of disability requires reassessment, fresh certificate to be obtained after its expiry to continue dependents claiming the deduction Eligible if loan is availed by the employee for self, spouse or children for pursuing higher education on or After 01-Apr-2005 Provisional certificate pertaining to current financial year only (Apr 12 Mar 13) from the Bank / Financial Education Loan Institution specifying the following: Interest Benefit Said loan is an Educational Loan and qualify for benefit u/s 80E Break up of principle and interest paid on the loan in the current financial year (Apr12Mar13) Interest paid for the first 8 years on loans taken for Higher Education such as Engineering / Medical etc Deduction in case of Disability-Only Self Photocopy of certificate (Form - 10 IA)issued by the competent medical authority in a Government Hospital specifying the % of disability Where condition of disability requires reassessment, fresh certificate to be obtained after its expiry, to continue claiming the deduction. Least of the premium paid or amount mentioned below is exempt Limited to Rs.15000/- In case of Individual, Spouse & Children Limited to Rs.30000/- In case of Individual, Spouse, Children and parents below 60 years Limited to Rs.35000/- In case of Individual, Spouse, Children and any one parent above 60 years Actual HRA earned by the assessee for the year. Rent paid minus 10% of Basic salary 40% of Basic or 50% of Basic (in case of Metro cities)

10 (13A)

House Rent Allowance

80DD

No benefit if disability is < 40% Rs.50000/- if disability is > =40% & <80% Rs.100000/- if disability is >=80%

No capping of maximum limit

80E

Actual interest paid by the employee during the financial year is allowed in full as deduction

80U

No benefit if disability is < 40% Rs.50000/- if disability is > =40% & <80% Rs.100000/- if disability is >=80%

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Proof Submission Guidelines

SECTIONS COMPONENT PROOF TO BE SUBMITTED
Provisional certificate pertaining to current financial year (Apr 12 Mar 13) with breakup of interest and principle from the Housing Finance Company / Bank. In case of Joint loan, declaration specifying the % of benefit claimed by the individual Loss on SelfHousing loan interest deduction through payroll will be considered. No proof required Occupied house property (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

TAX BENEFIT
Capped to a maximum of Rs.150000/- only i.e. Total amount allowed for a property is Rs.150000/-. Loan taken before 01/04/1999, interest restricted to Rs.30000/Housing Loan interest taken for renovation/repairs restricted to Rs.30000/If property is not occupied within 3 years of loan sanction date, benefit is restricted to Rs.30000/Pre-EMI interest (EMI paid before occupation of the house) is deductible in 5 equal installments starting from the year when the construction is completed or property is acquired. No cap on maximum amount

24

Provisional certificate pertaining to current financial year (Apr 12 Mar 13) with breakup of interest and principle from the Housing Finance Company / Bank. In case of Joint loan, declaration specifying the % of benefit claimed by the individual Loss / Income on Let out House Property (Housing loan interest)

24

Form 12 C or Computation of Loss / Income as per rule is mandatory. Template attached / available on IPSF Online calculations Loan taken before 01/04/1999, interest restricted to If the premises is left vacant / occupied by family, as per Section23 (1) (c), Notional Rental Income i.e. the Rs.30000/property might reasonably be expected to let from year to year has to be arrived and then, the net loss has to be arrived. Notional rent to be taken as municipal valuation or the rent which similar property in the same locality would fetch, whichever is higher. However, if standard rent is fixed for the property, then notional rent cannot exceed the standard rent Photocopy of receipts issued by the Insurance Company, pertaining to current financial year (Apr 12 Mar 13) Policy can be from any approved company by IRDA(Insurance Regulatory & Development Authority) Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-

80CCC

Pension Policy Policy can be in the name of individual, spouse and children Policy should specify that benefit eligible u/s 80CCC (Pension) Photocopy of previous year receipts are required for future months, as proof Declaration for future months to be submitted PF / VPF / LIC Deduction Deduction through payroll will be considered. No proof required for the same. through salary Photocopy of receipts issued by the Insurance Company, pertaining to current financial year (Apr 12 Mar 13) Policy can be from any approved company by IRDA(Insurance Regulatory & Development Authority) Life Insurance Policy can be in the name of individual, spouse and children 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 or PPF passbook Public provident Public Provident fund can be in the name of individual, spouse and children fund (PPF) Receipts should be of the current financial year only (Apr12 Mar13) Photocopy of all the certificates for which interest is being claimed. NSC certificate should have been taken on or after 01-Apr-2007

80C

Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-

80C

Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-

80C

Maximum deduction is allowed under this scheme is Rs.100,000/- per PPF Account Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/NSC Interest declared will also be accounted as Other Income and taxed

80C

NSC Interest

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

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SECTIONS COMPONENT PROOF TO BE SUBMITTED

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

80C

NSC Interest

Proof Submission Guidelines

NSC Interest declared will also be accounted as Other Income and taxed

TAX BENEFIT

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Proof Submission Guidelines

SECTIONS COMPONENT PROOF TO BE SUBMITTED
Photocopy of receipts / certificates pertaining to current financial year only (Apr 12 Mar 13) 80C National Savings 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 (Apr 12 Mar 13) Fixed Deposit in Term deposits for a minimum period of 5 years with a scheduled bank are eligible for deduction a Scheduled Policy should specify that benefit eligible u/s 80C. If not specified, letter from the bank specifying the eligibility Bank 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 (Apr12 Mar13) 80C Receipt can be in the name of individual, spouse and children Unit Linked Insurance Plan Policy should specify that benefit eligible u/s 80C Declaration for future months to be submitted Photocopy of Receipts / Statements pertaining to current financial year only (Apr12 Mar13)- Specified funds only Maximum deduction is allowed under Sec-80C (including Receipt should be in the name of individual (Self only) 80CCC) is Rs.100000/Policy should specify that benefit eligible u/s 80C Declaration for future months to be submitted Photocopy of Receipts / Bond pertaining to current financial year only (Apr12 Mar13) 80C Infrastructure Bonds Bond should be in the name of individual (Self only) 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 (Apr12 Mar13) Children Tuition Photocopy of Receipts for term fees paid, pertaining to current financial year only (Apr12 Mar13) Fees Only amount mentioned as Tuition Fee in the fee receipt will be considered for deduction Declaration for future months to be submitted 80C Deposit under Eligible only if the employee is a Sr. Citizen. Sr.Citizen is >= 60 years, as per Income Tax Act Senior Citizens Certificate should be of the current financial year only (Apr12 Mar13) Saving Scheme Certificate should specify that benefit eligible u/s senior citizen saving scheme Copy of the Receipt/certificate issued by the Post office Five Yr Time Deposit Scheme Certificate should be in the name of individual (Self only) in Post Office Time deposit for a period of 5 years with a post office is eligible for deduction. Housing Principle including Registration/ Stamp Duty Provisional certificate pertaining to current financial year (Apr 12 Mar 13) with breakup of interest and principle from the Housing Finance Company / Bank. In case of Joint loan, declaration specifying the % of benefit claimed by the individual Housing loan principle deduction through payroll will be considered. No proof required Photocopy of Sale Deed and Stamp Duty Paid Receipt pertaining to current financial year (Apr 12 Mar 13) Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-

TAX BENEFIT

80C

Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-

80C

Mutual Fund / ELSS

80C

80C

Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-

80C

Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-

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Proof Submission Guidelines

SECTIONS COMPONENT PROOF TO BE SUBMITTED
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 Rajiv Gandhi 5.IPO(intial public offers) of PSUs. Equity Savings 6.Mutual funds who has invested in above five type of shares shown above. 7.ETF (exchange traded funds ) invested money only in 1-5 sr number shown above, Scheme

TAX BENEFIT
Amount of deduction is at 50% of amount invested in equity shares. However, the amount of deduction under this provision cannot exceed Rs. 25,000

80CCG

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 B. Copy of Form A - declaration to be submitted by depository participant, or copy of Form B -declaration to be before the notification of the Scheme but has not made submitted by the new retail investor. any transactions in the equity segment or the derivative segment till the date of notification of the Scheme,

80TTA

Interest on Savings Bank account

Self-declaration from the employee mentioning the total interest earned only from the savings account during the FY Apr 12 Mar 13.

Maximum deduction is allowed under Sec-80TTA is Rs.10,000/Interest from savings account declared will also be accounted as Other Income

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Proof Submission Guidelines

SECTIONS COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT

Previous Employment Details

Who is eligible? Employees who has worked in any other company before joining the current company, within the financial year (Apr 12 Mar 13) and whose Date of Joining is after 1st April 2012

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 financial year (From Apr 12 onwards) including perquisites after deducting section 10 exe

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 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 considered along with the current employment income, to arrive at net tax liability for the year 2012-2013. 3. Where the previous employer has granted Deductions for Investments made, including Housing Loan interest deduction / Other Income 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 generating the Form16, the previous employment details will be removed. This treatment is supported by the below circular from 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)

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 salaries and TDS from the first employer in Form 12B(supported by relevant proofs) to the employer for the purpose of deduction of correct tax at source by the second employer. 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 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 deducted by the previous employer. Previously, the deductors used to furnish these det footnote in the TDS return. However, this cannot be done in electronic TDS return, as data structure does not support provision of any footnote.The matter was referred to the CBDT. The CBDT has clarified that such problems 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 by him in the Form 24 being filed by him. In case this amounts to deduction at a lower r 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 employers income and tax details should be shown in Form 24. Since Form 24 is an aggregation of Form 16s issued, Form 16 will display only the current employers income and tax. However, while 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 2) Only payslips will not be considered 3) Tax computation with projections will not be considered 4) Tax computations of the current year only will be considered

5) Previous years Tax computations will not be considered

Page 6 of 14

FOLLOWING WILL BE DISALLOWED

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

Deduction through salary for parents in law is not eligible as per IT Act

If mode of payment is cash except for preventive health checkup. Late payment charges and service tax will not qualify for the benefit.

Form 10 IA will not be considered, if the expiry date is before 01-Apr-2012

Certificate of payment due cannot be considered as proof of payment.

Form 10 IA will not be considered, if the expiry date is before 01-Apr-2012

Page 7 of 14

FOLLOWING WILL BE DISALLOWED

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 Bank statement showing only EMI deduction will be disallowed. Interest benefit cannot be claimed, unless the property is in possession on or before 31-Mar-2013. 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 letout Bank statement showing only EMI deduction will be disallowed Interest benefit cannot be claimed, unless the property is in possession on or before 31-Mar-2013.

Computation of net loss without considering Notional Rental Income will be disallowed

Late payment fees will not be considered

Policy for parents are disallowed

Future period benefits will not be provided, if declaration / previous year receipts is not submitted Do not attach payslips or Tax computation sheets as proofs Late payment fees will not be considered

Policy for parents are disallowed

Future period benefits will not be provided, if declaration / previous year receipts is not submitted. Proposal Receipt will be disallowed

Counterfoil alone does not constitute as proof. Passbook is mandatory Current year certificates do not qualify for interest benefit. Should be submitted under NSC Certificates in the name of spouse, children and parents are disallowed

Page 8 of 14

Certificates in the name of spouse, children and parents are disallowed

FOLLOWING WILL BE DISALLOWED

Page 9 of 14

FOLLOWING WILL BE DISALLOWED

Previous year certificates do not qualify. Should be submitted against NSC Interest only Certificates in the name of spouse, children and parents are disallowed Certificates in the name of spouse, children and parents are disallowed Payment Receipts or copy of cheque alone does not constitute as proof. Photocopy of certificate / bond is mandatory

Future period benefits will not be provided, if declaration is not submitted

Certificates in the name of spouse, children and parents are disallowed Future period benefits will not be provided, if declaration is not submitted Certificates in the name of spouse, children and parents are disallowed Term less than 3 years is not eligible for benefit

Donations, Capitation fees, Computer fees, Uniform fee, Sports fee etc., are not allowed Future period benefits will not be provided, if declaration is not submitted Certificate in the name of spouse / children disallowed Certificates in the name of spouse, children and parents are disallowed. Monthly recurring deposit with Post office is not eligible for benefit

Bank statement showing only EMI deduction will be disallowed

Page 10 of 14

FOLLOWING WILL BE DISALLOWED

Tax Benefit will not be extended, If the gross total income exceeds Rs. 10 lakhs; Investment made in companies other the the listed. This scheme is effective 23rd November, 2012, as per notification no 51/2012.

Interest from non savings account will be disallowed

Page 11 of 14

FOLLOWING WILL BE DISALLOWED

ding perquisites after deducting section 10 exemptions.

e employee. y for the year 2012-2013.

urrent employer along with the IPSF.

reatment is supported by the below circular from the IT

Form 12B(supported by relevant proofs) to the second at source at a lower rate and enclose Form 12B with his iously, the deductors used to furnish these details as a T. The CBDT has clarified that such problems can be

In case this amounts to deduction at a lower rate, then he

nt employers income and tax. However, while computing

putations will not be considered

Page 12 of 14

Section B

Chapter VI A 1 Medical Insurance 2 Medical Treatment for Handicapped Dependent 3 Medical Treatment for Specified Disease 4 Interest on Education Loan 5 Donations to Certain Funds, Charitable Institution etc., 6 Deduction in respect of Rents Paid 7 Permanent Physical Disability including Blindness

SECTION 80D 80DD 80DDB 80E 80G 80GG 80U SECTION 80CCC 80C 80C 80C 80C 80C 80C 80C 80C 80C 80C 80C 80C 80C 80C 80C 80C 80C SECTION 24 24

Section C

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

10 Provident Fund - PF 11 Voluntary Provident Fund - VPF 12 Life Insurance - LIC 13 Public Provident Fund - PPF 14 National Savings Certificate - NSC 15 Infrastructure Bonds - IBOND 16 Tution Fees - TF 17 Mutual Fund - MF 18 Equity Linked Savings Scheme - ELSS 19 Unit Linked Insurance Plan - ULIP 20 5-Yr bank fixed deposits (FDs) 21 Senior Citizen Savings Scheme 2004 (SCSS) 22 5-Yr post office time deposit (POTD) scheme 23 NABARD rural bonds 24 Interest on NSC 25 Stamp Duty & Registration Charges 26 Home Loan Principal Repayment Section D Housing Loan Details 27 Self Occupied Property 28 Let Out Property

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 Dependents Eligible for Tax Benefit Individual, Spouse & Children Individual Individual Individual, Spouse & Children Individual, Spouse & Children Individual Individual Individual Individual Individual Individual, Spouse & Children Individual Individual Individual Individual Individual Individual Individual Dependents Eligible for Tax Benefit Individual Individual