GUIDELINES FOR DECLARATION OF INVESTMENTS & SAVINGS OPTION FOR

DEDUCTION FROM TAXABLE SALARY FOR THE FINANCIAL YEAR 2014-15

Income tax payable on salary income is calculated on annual basis for every employee
based on his actual earnings till date + projected earnings for the remaining months in
the financial year after considering the tax saving investments / payments proposed /
actually made by him.
Employees can declare their investments & savings option through ESS. The path is
given below:Path: ESS -> Self-Service -> Payroll Reimbursements and Compensation -> Income
Tax -> Declaration for tax rebate --> Create --> IT-Declaration Type -->Select the
Declaration Type -> Fill the Investment /Deduction amount --> Tick on I acknowledge
and accept Review & Send --> Request number will be generated.
Note: This facility in ESS remains restricted during the last few days of every month
when the concerned months payroll is processed.
The Investment Declaration screen displays various investment / tax saving
options. You can choose the item from the list -> enter the amount which you propose
to invest / pay -> review & send. Your Income Tax will be calculated month on month
based on your proposed tax saving investments / payments that you have saved
through ESS. In the last quarter of the year Shared Services Organization-Human
Resource department (SSO-HR) will request you through a circular in your ESS to
update the actual investments / payments made against the ones you have proposed
and submit the proof thereof. Upon receipt of the same, SSO-HR will finalize your
income tax computation for the year in the final months of the financial year i.e.
February / March.
Information on various tax savings investment / payment options
Investments under section 80C / 80CCC / 80CCD of Income Tax Act, 1961:
U/S 80C :Maximum investment amount `1,50,000/. Life Insurance Premium for self,
spouse and children (premium allowable only 10% of sum assured if policy was
obtained from Financial Year 2012-13 onwards); Contributions to Public Provident
Fund in the name of self, spouse and children; Contributions to Unit Linked Insurance
Premium (ULIP) in the name of self, spouse and children; National Savings Certificate
(NSC) in the name of self; Accrued Interest on NSC in the name of self: Repayment
of Principal on Housing Loan in the name of self; installment or part payment towards
cost of house property including stamp duty and registration charged paid;
Subscription of a Notified Infrastructure Deposit Scheme for self: Contribution to
Annuity Plan of LIC or other Insurance companies in the name of self; Subscriptions
to Equity Linked Savings Scheme (ELSS) for self; Contribution to Notified Pension
Fund for self: Tuition Fees for childrens education, Term Deposits with scheduled
Banks for minimum 5 years in the name of self; Five year time deposit in an account
under Post Office Time Deposit Rules, 1981 in the name of self; Own contribution to
Provident Fund (this will be automatically updated by SSO-HR); Voluntary contribution
to Provident Fund (VPF) (this will be automatically updated by SSO-HR once you
choose VPF contribution through ESS); etc.
Note: Tuition Fees for children are allowed as deduction based on following:

a. Tuition fees paid towards full-time education of any two children.

b. Tuition fees shall include any payment of fee to any university, college, school
or other educational institution in India except the amount representing payment
in the nature of development fees or donation or capitation fees or payment of
similar nature.
c. Full-time education includes any educational course offered by any university,
college, school or other educational institution to a student who is enrolled fulltime for the said course. It is also clarified that Full-time education includes playschool activities, pre-nursery and nursery classes.
d. Apart from this employees can avail benefit of Rs.100/- per month per child,
(Maximum 2 Children) u/s 10(14) (ii) as deduction from the salary, where
children education allowances is paid by the company / opted as a choice pay
under CTC.
U/S 80CCC: Maximum investment amount `1,00,000/. Contribution to Annuity
Plans set up by Life Insurance Corporation of India or any other Insurer for receiving
pension viz Jeevan Suraksha, Jeevan Nidhi Plans of LIC / Other Insurers Pension
Plans for self.
U/S 80CCD (1): Maximum investment amount `1,00,000/. Contribution to notified
pension scheme in the name of self.
PLEASE NOTE:
a. The ceiling limit on aggregate amount of deductions u/s 80C, 80CCC and
80CCD(1) are restricted to `1,50,000/-.
b. Deduction in respect of Tuition fees paid shall be available within the eligible
limit of `1, 50,000/-.
c. Provident Fund, Voluntary Provident Fund, and Life Insurance premium which
are being recovered from salary, will be considered for deduction from total
income automatically. Hence these need not be entered by employee and will
not appear in the declaration screen. However, these will be considered and
shown in the Income tax Projection Statement.
d. Accrued Interest Rate of National Savings Certificate (NSC VIII Issue):
Sr.
No

Period of Purchase

No of Years
Completed
in Current
Fin.Year

Accrued
Interest
Rate

01stApr. 09 to 31stMar. 10

11.17%

01stApr. 10 to 31stMar. 11

10.33%

01stApr. 11 to 30thNov. 11

9.55%

01stDec. 11 to 31stMar. 12

10.11%

01stApr. 12 to 31stMar. 13

9.56%

01stApr. 13 to 31stMar. 14

8.68%

U/S 80CCD (2): Deduction in respect of contribution to New Pension Scheme of

Central Government
Contribution by employer to New Pension Scheme declared by the Central
Government not exceeding ten per cent of his salary in the previous year
For the purposes of deduction under section 80CCD, salary includes dearness
allowance, if the terms of employment so provide, but excludes all other allowances
and perquisites.
It may be noted that the contribution made by the employer towards a pension scheme
notified for section 80CCD, shall be allowed as deduction in the computation of total
income of the employee to the extent that it does not exceed ten percent of employees
salary. The amount of deduction so allowed shall be outside the overall limit of Rs
1,50,000/- as mentioned in Note No. a) above. It is therefore, clarified that contribution
made by an employee alone will be eligible to deduction limit of upto Rs.1,00,000.The
contribution made by the employer to a pension scheme u/s 80CCD(2) shall be
excluded from the overall limit of Rs. 1,50,000.
U/S 80CCG: Deduction in respect of investment made under an notified equity
saving scheme
The Finance Bill 2012 has inserted a new section in Chapter VI A-80CCG which
provides deduction in respect of investment made under a notified equity saving
scheme w.e.f. accounting year 2012-13. A scheme popularly known as Rajiv Gandhi
Equity Savings Scheme (RGESS) has been notified on November 23, 2012. The
objective of the scheme is to encourage savings of the small investors in domestic
capital market.
The salient features:
1. The deduction under section is available to resident individual whose gross total
income does not exceed Rs.12 lakhs.
2. The assessee is a new retail investor as defined in the scheme who has acquired
listed shares in accordance with the notified scheme.
3. The deduction available is 50% of the amount invested in equity shares. The
maximum amount that can invested is Rs 50000/-; thus the ceiling for deduction will
be 50% of the amount invested i.e. Rs.25000/-.
4. There is a prescribed period of holding of 3 years under the scheme. The first year
is known as fixed lock-in period and the subsequent period of two years is known as
flexible lock-in period.

5. If the assessee after claiming the deduction under this section fails to satisfy
the requirements under the scheme, the deduction originally allowed shall be deemed
to be the income of the assessee in the year in which default is committed.
6. This deduction is over and above the deduction available under section 80C.
7. Where an assessee has claimed and allowed a deduction under this section for any
assessment year in respect of any amount, he shall not be allowed any deduction
under this section for any subsequent assessment year.
For details of the scheme, eligibility criteria, investment pattern and various declaration
forms to be submitted by the investor to the depository participant for availing benefit
under RGESS please refer to the copy of the notification given in Annexure 4.
U/S 80D: Deduction in respect of Health Insurance premium payment and
Preventive Health check-up payments
a. Amount paid, by any mode other than by cash, towards health insurance
premium for self, spouse, dependent children up to maximum Rs 15000/- per
annum is allowed as deduction.
b. Amount paid, by any mode other than by cash, towards health insurance
premium for parents up to maximum Rs 15000/- per annum is allowed as
deduction.
c. If any one member specified in (a) and (b) above for whom premium is being
paid (other than cash) is a senior citizen (60 years of age or more) then
maximum Rs 20000/- will be allowed as deduction.
In addition to health insurance premium as mentioned in a, b and c above, amount
paid towards preventive health check-up by any means including cash up to a
maximum of Rs.5000/- is allowed as deduction. However the overall limit for health
insurance premium and preventive health check-up will remain at Rs.15000/- in case
of a and b and Rs.20000/- in case of c.
Please note that preventive health check-up expenses claimed otherwise i.e. as part
of Choice Pay reimbursement or from Medical Insurance cannot be claimed again
under section 80D.
U/S 80DD Deduction for maintenance including medical treatment of a
dependant who is a person with disability:
Expenditure on medical treatment incurred on dependant relative who is suffering from
disability including blindness or mental retardation and deposit made by an individual
under a scheme framed by LIC / Other Insurer / Administrator / Specified Company
for the benefit of his dependant with disability. There is no necessity for the proof for
the expenditure incurred. But the deposit should have proper supporting.
It is provided that a deduction of an amount of Rs. 50,000/- shall be allowed under this
section, for the medical expenditure, etc. incurred in respect of a dependant being a

person with disability. It is also provided that a higher deduction of Rs. 1 Lakh shall
be allowed w.e.f. the financial year 2009-10, where such dependant is a person with
severe disability.
For claiming the deduction, the assesse shall have to furnish a certificate issued by
the *medical authority under the Persons with Disabilities (Equal Opportunities,
Protection of Rights and Full Participation) Act, 1995 along with the return of income
to be filed under section 139. A copy of the above certificate from the medical authority
has to be submitted for claiming the deduction from the salary income. Where the
condition of disability requires reassessment, a fresh certificate from the medical
authority shall have to be obtained after the expiry of the period mentioned in the
original certificate in order to continue to claim the deduction.
Persons with disability means : a person as referred to in clause (t) of section 2 of
the Persons with disabilities (equal opportunities, protection of rights and full
participation) Act, 1995 (1 of 1996) [or clause (j) of section 2 of the National Trust
for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and
Multiple Disabilities Act, 1999 (44 of 1999]
Person with severe disability means:
(i) a person with eighty percent or more of one or more disabilities, as referred to
in sub-section (4) of section 56 of the Persons with disabilities (equal
opportunities, protection of rights and full participation) Act, 1995 (1 of 1996);
(PWDA) or
(ii) a person with severe disability referred to in clause (o) of section 2 of the
National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental
Retardation and Multiple Disabilities Act, 1999 (44 of 1999); (NTWPA)
The term Dependent means in the case of an individual, the spouse, children,
parents, brothers and sisters of the individual, or any of them dependent wholly or
mainly on such individual and who has not claimed any deduction u/s. 80U in
computing his total income for the assessment year relating to the previous year.
Administrator means a person or a body of persons appointed by the Central
Government as the Administrator of the specified undertaking of the UTI who
will have power to accept the deposits u/s. 80DD.
Specified Company means a company to be formed and registered under the
Companies Act, 1956 (1 of 1956) and whose entire capital is subscribed by such
financial institutions or banks as may be specified by the Central Government,
by notification in the Official Gazette, for the purpose of transfer and vesting of
the undertaking;
Disability under PWDA means:
a)
b)
c)
d)
e)
f)

Blindness
Low vision
Leprosy-cured
Hearing impairment
Locomotors disability
Mental retardation

g) Mental illness
Person with disability under PWDA means: U/S 2(t) of PWDA, person with
disability means a person suffering from not less than 40% of any disability as
certified by a medical authority.
Person with severe disability under PWDA means: U/S n 56(4) of PWDA person
with severe disability means a person with 80% or more of one or more
disabilities.
Medical Authority under PWDA
Medical Authority (Hospitals & Institutions) has not been notified by the appropriate
Government. However, we understand that the Disability Certificate can be
obtained from Medical Board constituted by Central and State Governments /
Rehabilitation Centers for the Disabled / All India Institute for physically
handicapped / Govt. hospitals. There is no Form prescribed for this purpose.
Disability (Diseases) under NTWPA means :
a)
b)
c)
d)

Autism,
Cerebral Palsy
Mental Retardation
Multiple Disabilities

Person with disability under NTWPA means: U/S 2(j) of the NTWPA person
with disability means a person suffering from any of the conditions relating to
autism, cerebral palsy, mental retardation or a combination of any two or more
of such conditions and includes a person suffering from severe multiple
disability.
Person with severe disability under NTWPA means: U/S 2 (o) of the NTWPA
severe disability means disability with 80% or more of one or more of multiple
disabilities.
Medical Authority under NTWPA is defined under Rule 11A as follows :- (Income
tax (18th Amendment) Rules, 2005):
Medical authority for certifying autism, cerebral palsy and multiple disabilities and
certificate to be obtained from the medical authority for the purposes of deduction
under section 80DD and section 80U.
(1) For the purposes of clause (e) of the Explanation to Sub-section (4) of Section
80DD and clause (d) of the Explanation to Sub-section (2) of Section 80U, the
medical authority for certifying autism, cerebral palsy, multiple disabilities,
person with disability and severe disability referred to in clauses (a), (c), (h), (j)
and (o) of Section 2 of the National Trust for Welfare of Persons with Autism,
Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999),
shall consist of the following:(i) a Neurologist having a degree of Doctor of Medicine (MD) in Neurology (in
case of children, a Pediatric Neurologist having an equivalent degree); or
(ii) a Civil Surgeon or Chief Medical Officer in a Government hospital.

Form 10-IA has been prescribed for this purpose. (Refer to Income-tax (18th
Amendment) Rules, 2005). (Form enclosed - annexure-2)
U/S. 80DDB Deduction for medical treatment for self or dependant for
specified disease duly certified by a specialist working in a Govt Hospital:
It is necessary that the expenditure should be made and deduction will be allowed to
the extent of the actual amount paid for the treatment or a sum of Rs.40,000/-,
whichever is less. If the dependant is a senior citizen Rs.60,000/- will be the ceiling.
The assesse shall furnish with the return of income, a certificate in form 10-I , from a
neurologist, an oncologist, a urologist, a haematologist, an immunologist or such other
specialist, as may be prescribed, working in a Government hospital. The copy of the
certificate in Form 10-I has to be submitted to the Income tax division along with
complete particulars and Xerox copies of proofs for expenditure for claiming the
deduction from the salary income.
Form 10-I has been prescribed for this purpose. (Form enclosed - annexure-1)
U/S 80DDB, the specified diseases and ailments as per rule 11DD are as under
:
(i) Neurological Diseases where the disability level has been certified to be 40%
and above:
a. Dementia
b. Dystonia Musculorum Deformans
c. Motor Neuron Disease
d. Ataxia
e. Chorea
f. Hemiballismus
g. Aphasia
h. Parkinsons Disease
(ii) Malignant Cancers
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
(iv) Chronic Renal failure
(v) Hematological disorders:
a. Hemophilia
b. Thalassemia
Government hospital includes a departmental dispensary whether full-time or
part-time established and run by a Department of the Government for the
medical attendance and treatment of a class or classes of Government servants
and members of their families, a hospital maintained by a local authority and
any other hospital with which arrangements have been made by the
Government for the treatment of Government servants.
The dependent means in the case of an individual, the spouse, children,
parents, brothers and sisters of the individual or any of them dependent wholly
or mainly on such individual.

Deduction under section 80U Deduction for person with disability (For self):
It is provided that a deduction of an amount of Rs. 50,000/- shall be allowed under this
section, for the medical expenditure, etc. incurred in respect of the employee being a
person with disability. It is also provided that a higher deduction of Rs. 1 Lakh shall
be allowed with effect from the financial year 2009-10. Where such employee is a
person with severe disability . There is no necessity to furnish proof for the expenditure
incurred.
For claiming the deduction, the assesse shall have to furnish a certificate issued by
the medical authority under the Persons with Disabilities (Equal Opportunities,
Protection of Rights and Full Participation) Act, 1995 along with the return of income
to be filed under section 139. A copy of the above certificate from the medical authority
has to be submitted for claiming the deduction from the salary income. Where the
condition of disability requires reassessment, a fresh certificate from the medical
authority shall have to be obtained after the expiry of the period mentioned in the
original certificate in order to continue to claim the deduction
PWDA means - Persons with Disabilities (Equal Opportunities, Protection of Rights
and Full Participation) Act, 1995 (1 of 1996)
NTWPA means National Trust for Welfare of Persons with Autism, Cerebral Palsy,
Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999);
Disability under PWDA means
a.
b.
c.
d.
e.
f.
g.

blindness;
low vision;
leprosy-cured
hearing impairment
locomotor disability
mental retardation
mental illness

Person with disability under PWDA means--Under section 2(t) of PWDA, person with disability means a person suffering from
not less than forty per cent of any disability as certified by a medical authority\
Person with severe disability under PWDA means--Under section 56(4) of PWDA person with severe disability means a person with
eighty per cent or more of one or more disabilities.
Medical Authority under PWDA
Medical Authority (Hospitals & Institutions) has not been notified by the appropriate
Government. However, we understand that the Disability Certificate can be obtained
from Medical Board constituted by Central and State Governments / Rehabilitation
Centers for the Disabled / All India Institute for physically handicapped / Govt.
hospitals. There is no Form prescribed for this purpose.
Disability (Diseases) under NTWPA means
Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities

Person with disability under NTWPA means--Under section 2(j) of the NTWPA person with disability means a person suffering
from any of the conditions relating to autism, cerebral palsy, mental retardation or a
combination of any two or more of such conditions and includes a person suffering
from severe multiple disability.
Person with severe disability under NTWPA means--Under section 2 (o) of the NTWPA severe disability means disability with eighty
percent or more of one or more of multiple disabilities;
Medical Authority under NTWPA is defined under Rule 11A as follows :- (Income-tax
(18th Amendment) Rules, 2005)
Medical authority for certifying autism, cerebral palsy and multiple disabilities and
certificate to be obtained from the medical authority for the purposes of deduction
under section 80DD and section 80U.
(1) For the purposes of clause (e) of the Explanation to Sub-section (4) of Section
80DD and clause (d) of the Explanation to Sub-section (2) of Section 80U, the
medical authority for certifying autism, cerebral palsy, multiple disabilities,
person with disability and severe disability referred to in clauses (a), (c), (h), (j)
and (o) of Section 2 of the National Trust for Welfare of Persons with
Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44
of 1999), shall consist of the following:
Neurologist having a degree of Doctor of Medicine (MD) in Neurology (in case of
children, a Pediatric Neurologist having an equivalent degree); or Civil Surgeon
or Chief Medical Officer in a Government hospital.

Form 10-IA has been prescribed for this purpose. (Refer to Income-tax (18th
Amendment) Rules, 2005). (Form enclosed- annexure-2)
U/S 80E: Deduction in respect of Interest on Loan taken for higher education
Interest paid on a loan (without any limit) for education of self or relative is allowed as
deduction.
Relative is defined as spouse, children, someone for whom employee is a legal
guardian.
Such deduction is allowed for the initial year + 7 succeeding years i.e. total of
maximum 8 years.
The loan can be taken from a Bank, Financial Institution or a charitable institution
which is approved for the purpose of section 10(23C) or 80G(2)(a).
Higher education means any course of study pursued after passing the Senior
Secondary examination or its equivalent from any school, board or university
recognized by the Central Government or state Government or Local authority or by

any other authority authorized by the Central Government or state Government or local
authority to do so.

U/s 80EE :- (New Section):- Deduction in respect of interest on loan taken for
residential house property.
Vide Fianc Act 2013, an individual is allowed a deduction upto a limit of Rs 1, 00, 000
being paid as interest on a loan taken from a Financial Institution for acquisition of a
residential house with the following conditions in order to claim deduction under section
80EE.
1. The Loan is sanctioned between 1st April 2013 and 31st March 2014.
2. The Amount of Loan sanctioned for the acquisition of Residential House Property does
not exceed Rs. 25,00,000
3. The Value of the Residential House Property does not exceed Rs. 40,00,000
4. The Assessee does not own any House Property on the date of sanction of Loan

Pl note: Where the interest payable is less than Rs. 100000/- for AY 2014 -15, then the balance
amount shall be allowed in AY 2015-16.
If deduction is claimed under section 80EE, no deduction will be allowed in respect of such income
under any other provision of the Act (u/s 24) for the same or any other assessment year.

U/s 80G: Deduction in respect of donations to certain funds, charitable

institutions etc
Deduction in respect of donation to certain funds, charitable institutions etc, are not
permissible through salary income. Hence, our company does not allow such
deductions from the salary income. The tax relief on such donations, as admissible
under section 80G of the Income Tax Act, 1961, will have to be claimed by the
employee in his/her return of income directly from the tax authorities.
U/S 24 - Housing loan interest payment (Self Occupied House) claimable as a
deduction from Income from House Property:
If the house specified for own residence has been acquired / constructed / repaired /
renewed / reconstructed with borrowed money then the interest payable on such
borrowed money will be allowed as deduction. The limit for deduction is ` 2,00,000/-.
If the money is borrowed on or after 1 April, 1999 and ` 30,000/- if the money is
borrowed up to 31 March,1999.
The following documents will be considered as evidence for the housing loan interest:
1. Provisional Certificate for Interest payable as obtained from Bank / Housing
Finance Company for the period 01.04.2014 to 31.03.2015. In case the loan is
taken from others, the stamped money receipt towards repayment, copy of your
bank statement showing evidence of repayment and certificate from the
recipient giving details of principal repayment and interest payment to be
submitted.

2. If being claimed for the first time then House Completion Certificate /
Possession Certificate and copy of Sale Agreement to be submitted.
3. Property should be in employees name. If it is in the joint name then the
employee should be necessarily a co-owner. If the property and the related
loan is in joint name then a copy of employees bank statement showing
evidence of repayment needs to be additionally submitted.
4. Form 12C duly filled in and signed (this form, though omitted by Finance Act,
can still be used).
5. Proof for payment of Interest on Housing Loan u/s. 24 of the Income Tax Act
and proof for payment of principal u/s.80C have to be furnished separately while
submitting your House Property Loss Statement and actual investment proofs
under the respective sections. Separate figures for interest payment and
principal repayment should be mentioned in the Certificate obtained from
concerned Bank / Housing Finance Company.
6. In case Interest on Housing Loan / Housing Loan repayment is being recovered
from salary, the same will not be considered for reduction of tax automatically.
Hence employees who have taken loan from the company will also have to
follow the aforesaid process for entering their claims.
7. For repair, renovation or reconstruction of house property also, the maximum
interest allowable will be Rs.30000/ irrespective of the date of borrowal.
8. If the construction or purchase of house / flat is not completed before the end
of the financial year 31.03.2015, the interest paid during the financial year 201415 cannot be claimed for deduction.
9. Interest paid during construction period (Pre - EMI interest) is deductible is 5
equal instalments from the financial year in which the construction or purchase
of the house / flat is completed and Completion Certificate / Possession
certificate obtained.
Income / Loss from House property (let out or deemed to be let out)- applicable
in case of more than one house property - To be prepared manually and
submitted:
The computation for Loss under the head Income from House Property as per
provisions of section 22 to 27 to be attached along with Form No.12C (can still be used
though omitted) duly filled in and signed.
Only one house property can be self-occupied and other house property owned by the
employee shall be deemed to be let out and notional rent shall be considered as
income and if actually let out then actual rent to be taken as income.
Checklist for the same mentioned below:
The property should be in employees name and the House Completion
Certificate / Possession Certificate shall be produced for claim u/s.24.

 As per the existing provision only 30% of Annual value, (Rent received / notional
rent minus municipal taxes) and interest payable are allowed as deduction w.e.f.
Assessment Year 2002-2003.
Proof for payment of Municipal Taxes to be produced. This should have been
actually paid during the Financial Year 2014-15.
Proof for payment of Interest u/s. 24 and proof for repayment of principal u/s.
80C to be produced. Separate figures for Interest and Principal to be obtained
from concerned Bank / Housing Finance Company. If loan taken from Others
then stamped money receipts for repayment, copy of your bank statement as
proof of payment and Certificate from the recipient giving details of principal
repayment and interest payment needs to be submitted.
In the case of let out property copy of Lease Agreement with the lessee and
copy of rent receipts issued needs to be submitted.

The computation of Income / Loss is to be worked out in the following manner:

a)
b)
c)
d)
e)
f)
g)

Rent received / receivable / notional rent

Less: Municipal taxes
Annual value (a b)
Less 30% of annual value
Balance (c d)
Less: Interest paid / payable
Income / Loss from house property (e f)

::
::
::
::
::
::
::

U/S 10 (13A) Deductions for House Rent paid during the Financial Year :For availing this deduction employee is required to first select House Rent Allowance
(HRA) as one of his / her Choice Pay items in CTC and submit the rent agreement
copy to SSO-HR. Please note that the benefit of tax exemption on account of HRA
is made effective only after SSO-HR receives copy of the rent agreement from
the employee.
Please note that in cases where the annual rent paid by the employee exceeds
Rs.1,00,000/- per annual (as per the CBDT Circular No 08/2013 Dated 10 th October
2013), it is mandatory for the employee to inform the PAN of the landlord to SSO-HR.
In case the landlord does not have a PAN, a declaration to this effect from the landlord
mentioning the name and address of the landlord should be obtained by the employee
from the landlord and submitted to SSO-HR. Format of this declaration is provided in
Annexure 3.
The amount of deduction as mentioned in Income tax rule (Rule 2A) for claiming
deduction of house rent allowance u/s 10(13A) is as follows:The amount which is not to be included in the total income of an employee in respect
of the special allowance referred to in clause (13A) of section 10 shall be least of the
following:-

(a) the actual amount of such allowance received by the employee in respect
of the relevant period; or
(b) the amount by which the expenditure actually incurred by the employee in
payment of rent in respect of residential accommodation occupied by him
exceeds one-tenth of the amount of salary due to the employee in respect
of the relevant period; or
(c) an amount equal to
(i)

where such accommodation is situated at Bombay, Calcutta, Delhi or Madras,

one-half of the amount of salary due to the employee in respect of the relevant
period; and

(ii)

where such accommodation is situated at any other place, two-fifth of the

amount of salary due to the employee in respect of the relevant period
whichever is the least (least of a, b and c)
Explanation: In this rule
(i)

salary includes basic and dearness allowance(if the terms of

employment so provide), but excludes all other allowances and
perquisites.

(ii)

relevant period means the period during which the said

accommodation was occupied by the assesse during the previous
year.

Deduction u/s 10 (13A) will be allowed in the Financial Year 201415 only up to the
expiry of lease period (proportionately) as per the lease agreement submitted by you
for the Financial Year 201415. The employees are requested to send the copy of
proper lease agreement on time. Please note that delayed submission in subsequent
months will not be accepted for retrospective claim from April 2014.
You are requested to send the original stamped rent receipts to concerned SSO HR
office at the end of every quarter after retaining photo copy for your record to avoid
updation in the last minute.
Please submit in following format.
Sr.No.

I
II
III
IV

Name & address of

PAN of the Land Lord

Rent paid

No. of Rent

Person to whom Rent

(above Rs.100000/.

per month

Receipts

paid

per annum)

(Rs)

enclosed

HRA exemption will not be given on the basis of plain rent receipt without signature on
revenue stamps (particularly when paid by cash) and also without recipients name
and address.
Please mention your name and Employee Code on top of all documents before
submitting to SSO HR office concerning your location.
Permanent Account Number (PAN):
It is mandatory to quote Income Tax Permanent Account Number (PAN) in TDS
Certificate (Form No. 16) to be issued by the company. In view of this please verify
your PAN (it should be 10 characters without any space) in ESS and correct the same
in case you find any error.
If you do not have a PAN, please apply for the same immediately through UTI Services
or other TIN facilitators which is the appointed agency by Income Tax authorities. Non
furnishing of PAN will attract higher rate of TDS and we will not be able to issue Form
16 for the respective Financial Year.
Application for PAN i.e. Form 49A is available in ESS under Income tax menu >Income
Tax forms download -> Form No. 49A.
Please note that from financial Year 2012-13 onwards the TDS certificate (Form 16 -PART
A) is generated by the Income Tax Department (TDS CPC).The Name and Address as
appearing in the form 16 is being captured form the ITD PAN Master as per PAN application
data which was filed for obtaining Permanent Account Number.
It is therefore suggested to maintain correct name and address in the PAN Data for avoiding
mismatch of details in future.

Income from Previous Employment:

Copy of Form 16 or Provisional Form 16 issued by the previous employer(s) along
with form 12B is to be submitted to consider income from previous employment in the
case of those who have newly joined the organization.
Form 12B is available in ESS -> Self-Service -> Payroll Reimbursements and
Compensation -> Income Tax -> Documents -> Form 12B
Submission of proof of actual investment / payment
Employees are required to submit proofs for actual investments & savings for
deduction from salary made by them in the following manner for the financial year
2014-15 as and when the circular advising to do so is displayed in ESS Home Page,
which is usually done in the month of December / January.
(A) Proof of Investments and savings for deduction
Proof of Investments made u/s 80C/80CCC/80CCD
Deduction U/s 80D
Deduction U/s 80DD
Deduction u/s. 80DDB
Deduction U/s. 80E
Deduction U/s. 80U

Please log on to your ESS. Select Employee Self Service -> Income tax -> Investment
Declaration
Select the item of investment / payment from the list -> enter your actual savings /
investments / payments in ESS --> Self-Service --> Payroll Reimbursements and
Compensation --> Income Tax --> Declaration for tax rebate --> Create ---> ITDeclaration Type -->Section 80C deductions or Section 80 deductions --> Fill the
amount as required & then tick on I acknowledge and accept -- Review & Send - Investment Declaration Print --> attach copy of the proof --> submit to Shared
Service Organisation-HR or concerned SSO HR co-located office at your site / location
for processing.
After verifying documentary proof of each investment/deductions, the same will be
approved. Once approved, the data will no longer be available for you to change. You
can view the approved investments amounts in ESS. If proper supportings are not
attached or amounts entered are not in conformity with the proofs provided we will
appropriately change the figure entered by you.
However, for Life Insurance Premium, ULIP, Mediclaim, etc., which are payable in
March 2015, you can declare the amount in the Actual column and mention / write
the due date of payment in the printout. Please note that you are required to furnish
proof of actual payments / investments latest by 7th March 2015.
(B) Proof of housing loan interest payment u/s 24 (Self Occupied) through ESS:If you have submitted the above documents once during the financial year 2014-15
then there is no need to submit again at the end of the year unless there is any change
in the claim for deduction.
(C) Income / Loss from House property (let out or deemed to be let out) - To be
prepared manually and submitted).
(If you have submitted the above documents once during the financial year 2014-15
then there is no need to submit again at the end of the year unless there is any change
in the claim for deduction)
(D) Deduction u/s 10 (13A): - Deductions for House Rent paid during the Financial
Year :-(If not submitted in this financial year).
(If you have submitted the above documents once during the financial year 2014-15
then no need to submit again at the end of the year unless there is any change in the
claim for deduction).
These investments / deductions will be considered for computing deductions from your
total income in February 2015 payroll. In case you wish to make further investments
in March 2015, you are required to send proof of the same to concerned SSO-HR
office without entering the same in ESS before 7th March 2015 for approval and
updating in system. You will be able to view the updation of the same in your ESS.

PLEASE NOTE:
1. All supportings (photo copies) should be signed with date by the employee.
2. If there are more than one investment / payment of the same type viz. life
insurance policies or National Savings Certificates, accrued interest on NSCs
etc, please provide policy-wise details and certificate-wise details separately.
3. Please mention your employee code on all the necessary documents to avoid
mistakes in the updation of proofs.
4. Please refer Annexure 1 for Form 10-I and Annexure 2 for Form 10-IA relating
to deduction u/s 80DD, 80DDB and 80U.
We request you to enter data on ESS with utmost care so as to avoid errors for our
mutual benefit and also mention your Employee Code without fail in all documents
for easy verification of proofs and to avoid errors.
No Income tax refund will be made after payment of TDS to the Central
Government, under any circumstances.

Annexure-1

Annexure - 2

Annexure 3

SELF DECLARATION

I, ____

_____(Name of Land Lord) residing at_____________

__

(Detailed Address) do hereby confirm that I have leased residential premises to

( Name of the employee ),
Address) for the period
rent of Rs._____

(Detailed
(DD/MM/YYYY) to

(DD/MM/YYYY) on

__ per month.

I do not have Permanent Account Number (PAN) and do hereby declare and confirm that what
is stated above is correct.

Date
Place

Signature

Annexure 4
Rajiv Gandhi Equity Savings Scheme Notified as per Section 80CCG.
[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (ii) OF THE GAZETTE OF
rd
INDIA, EXTRAORDINARY, DATED THE 23 November, 2012]
Government of India
Ministry of Finance
Department of Revenue
Notification
New Delhi, the 23rdNovember , 2012.
(Income-tax)
S.O. 2777(E). In exercise of the powers conferred by sub-section (1) of section 80CCG of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following
Scheme, namely:1. Short title, commencement and application. - (1) This Scheme may be called the Rajiv
Gandhi Equity Savings Scheme, 2012.
(2) It shall come into force on the date of its publication in the Official Gazette.
(3) This Scheme shall apply for claiming deduction in the computation of total income of the
assessment year relevant to a previous year on account of investment in eligible
securities under sub-section (1) of section 80CCG of the Income-tax Act, 1961.
2. Objective of Scheme.-The objective of the Scheme is to encourage the savings of the small
investors in domestic capital market.
3. Definitions.- In this Scheme, unless the context otherwise requires,(i) Act means the Income-tax Act, 1961 (43 of 1961);
(ii) demat account means an account opened with the depository participant in
accordance with the guidelines laid down by the Securities and Exchange Board
of India established under section 3 of the Securities and Exchange Board of
India Act, 1992 (15 of 1992);
(iii) depository means a company as defined in clause (e) of sub-section (1) of
section 2 of the Depositories Act, 1996 (22 of 1996);
(iv) depository participant means a participant as defined in clause (g) of subsection (1) of section 2 of the Depositories Act, 1996 (22 of 1996);
(v) eligible securities means any of the following :(a) equity shares, on the day of purchase, falling in the list of equity declared as
BSE-100 or CNX-100 by the Bombay Stock Exchange and the
National Stock Exchange, as the case may be;
(b) equity shares of public sector enterprises which are categorised as
Maharatna, Navratna or Miniratna by the Central Government;
(c) Units of Exchange Traded Funds (ETFs) or Mutual Fund (MF) schemes with
Rajiv Gandhi Equity Savings Scheme (RGESS) eligible securities as
underlying, as mentioned in sub-clause (i) or sub-clause (ii) above,
provided they are listed and traded on a stock exchange and settled
through a depository mechanism;
(d) Follow on Public Offer of sub-clauses (i) and (ii) above;
(e) New Fund Offers (NFOs) of sub-clause (iii) above;

(f) Initial Public Offer of a public sector undertaking wherein the government
shareholding is at least fifty-one per cent. which is scheduled for getting listed
in the relevant previous year and whose annual turnover is not less than four
thousand crore rupees during each of the preceding three years; (vi) financial
year means a year commencing on the 1st day of April and ending on the
31stday of March;
(vii) Form means the Form appended to the Scheme;
(viii) investment means investment by an assessee in any of the eligible securities in
accordance with the Scheme;
(ix) new retail investor means the following resident individuals:-

(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,
and any individual who is not the first account holder of an existing joint
demat account shall be deemed to have not opened a demat account for
the purposes of this Scheme
(x) Scheme means the Rajiv Gandhi Equity Savings Scheme;
(xi) words and expressions used and not defined in this Scheme, but defined in the
Act, shall have the meanings respectively assigned to them in the Act.
4. Eligibility .- The deduction under the Scheme shall be available to a new retail investor
who complies with the conditions of the Scheme and whose gross total income for the
financial year in which the investment is made under the Scheme is less than or equal
to ten lakh rupees.
5. Procedure at time of opening demat account.-The new retail investor shall follow the
following procedure at the time of opening or designating a demat account :(a) the new retail investor shall open a new demat account or designate his existing
demat account for the purpose of availing the benefit under the Scheme;
(b) the new retail investor shall submit a declaration in Form A to the depository
participant who will forward the same to the depository for verifying the status of the
new retail investor;
(c) the new retail investor shall furnish his Permanent Account Number (PAN) while
opening the demat account or designating the existing account as a Rajiv Gandhi
Equity Savings Scheme eligible account, as the case may be.
6. Procedure for investment under Scheme.- A new retail investor shall make investments
under the Scheme in the following manner :(a) the new retail investor may make investment in eligible securities in one or more than
one transactions during the year in which the deduction has to be claimed;
(b) the new retail investor may make any amount of investment in the demat
account but the amount eligible for deduction, under the Scheme shall not exceed
fifty thousand rupees;
(c) the eligible securities brought into the demat account, as declared or designated
by the new retail investor, will automatically be subject to lock-in during its first

year, as per the provisions of paragraph 7, unless the new retail investor specifies
otherwise and for such specification, the new retail investor shall submit a
declaration in Form B indicating that such securities are not to be included within
the above limit of investment;
(d) the new retail investor shall be eligible for a deduction under sub-section (1) of
section 80CCG of the Act in respect of the actual amount invested in eligible
securities , in the first financial year in respect of which a declaration in Form B has
not been made, subject to the maximum investment limit of fifty thousand rupees;
(e)the new retail investor who has claimed a deduction under sub- section (1) of
section 80CCG of the Act, in any assessment year, shall not be allowed any
deduction under the Scheme for any subsequent assessment year;
(f) the new retail investor shall be permitted a grace period of three trading days
from the end of the financial year so that the eligible securities purchased on the
last trading day of the financial year also get credited in the demat account and
such securities shall be deemed to have been purchased in the financial year
itself;
(g) the new retail investor may also keep securities other than the eligible
securities covered under the Scheme in the demat account through which
benefits under the Scheme are availed;
(h) the new retail investor can make investments in securities other than the
eligible securities covered under the Scheme and such investments shall not be
subject to the conditions of the Scheme nor shall they be counted for availing
the benefit under the Scheme;
(i) the investment under the Scheme shall consist of all eligible securities covered
under the Scheme that are initially bought by the investor under the Scheme or
that are bought subsequently by the investor as per the provisions of the
Scheme;
(j) the deduction claimed shall be withdrawn if the lock-in period requirements of
the investment are not complied with or any other condition of the Scheme is
violated.
7. Period of holding requirements. - (1) The period of holding of eligible securities shall be
three years to be counted in the manner detailed hereunder.
(2) All eligible securities are required to be held for a period called the fixed lock-in
period which shall commence from the date of purchase of such securities in the
relevant financial year and end one year from the date of purchase of the last set of
eligible securities (in the same financial year) on which deduction is claimed under the
Scheme.
(3) The new retail investor shall not be permitted to sell, pledge or hypothecate any
eligible security during the fixed lock-in period.
(4) The period of two years beginning immediately after the end of the fixed lock-in
period shall be called the flexible lock-in period.

(5) The new retail investor shall be permitted to trade the eligible securities after the
completion of the fixed lock-in period subject to the following conditions:(a) the new retail investor shall ensure that the demat account under the Scheme is
compliant for a cumulative period of a minimum of two hundred and seventy days
during each of the two years of the flexible lock-in period as laid down hereunder:(A) the demat account shall be considered compliant for the number of days where
value of the investment portfolio of eligible securities , within the flexible lock-in
period, is equal to or higher than the amount claimed as investment for the purposes
of deduction under section 80CCG of the Act;
(B) in case the value of investment portfolio in the demat account falls due to fall in
the market rate of eligible securities in the flexible lock-in period, then
notwithstanding sub clause(A), (i) the demat account shall be considered compliant from the first day of the flexible
lock-in period to the day any such eligible securities are sold during this period;
(ii) where the assessee sells the eligible securities mentioned in sub-clause (B) from his
demat account, he shall have to purchase eligible securities and the said demat account
shall be compliant from the day on which the value of the investment portfolio in the
account becomes (I) at least equivalent to the investment claimed as eligible for deduction under section
80CCG of the Act or;
(II) the value of the investment portfolio under the Scheme before such sale, whichever
is less.
(6) The new retail investors demat account created under the Scheme shall, on the
expiry of the period of holding of the investment, be converted automatically into an
ordinary demat account.
(7) For the purpose of valuation of investment during the flexible lock-in period, the
closing price as on the previous day of the date of trading, shall be considered.
(8) While making the initial investments upto fifty thousand rupees, the total cost of
acquisition of eligible securities shall not include brokerage charges, Securities
Transaction Tax, stamp duty, service tax and all taxes, which are appearing in the
contract note.
(9) Where the investment of the new retail investor undergoes a change as a result of
involuntary corporate actions like demerger of companies, amalgamation, etc.
resulting in debit or credit of securities covered under the Scheme, the deduction
claimed by such investor shall not be affected.
(10) In case of voluntary corporate actions like buy-back, etc. resulting only in debit of
securities, where new retail investor has the option to exercise his choice, the same
shall be considered as a sale transaction for the purpose of the Scheme.
(11) The Securities and Exchange Board of India established under section 3 of the
Securities and Exchange Board of India Act, 1992 (15 of 1992) shall notify the corporate
actions, referred to in sub-paragraph (9), allowed under the Scheme in this regard.
8. If the new retail investor fails to fulfil any of the provisions of the Scheme, the deduction
originally allowed to him under sub-section (1) of section 80CCG of the Act for any
previous year, shall be deemed to be the income of the assessee of such previous year
and shall be liable to tax for the assessment year relevant to such previous year.

9. (1) The depository shall certify the new retail investor status of the assessee at the time of
designating his demat account as demat account for the purpose of the Scheme. (2)
The depository participant shall furnish an annual statement of the eligible securities
invested in or traded through the demat account to the demat account holder.
10. The depository shall provide a consolidated statement of details in the electronic format,
as specified in Form C, on all the Rajiv Gandhi Equity Savings Scheme beneficiaries to
the Director General of Income Tax (Systems) or any other person authorised by him,
within a period of thirty days from the end of the relevant financial year.
11. For the purpose of paragraph 10, the Director General of Income Tax (Systems) shall
determine the procedures, formats and standards for furnishing of the report in
electronic format in Form C by the depositories.
12. Assessees shall be liable to submit the relevant records to the income-tax authorities for
verification, as and when required.
[ Notification No. 51 /2012 F. No. 142/35/2012 TPL)
(Raman Chopra)
Director (TPL-II)

Form A
[See paragraph 5(b)]
Declaration to be submitted by the investors to the depository
participants for availing the benefits under the Rajiv Gandhi Equity

Savings Scheme.
Name of the Investor:
(first holder)
Address of the investor:

Permanent Account Number (PAN):

1. It is hereby certified that* --(a) I do not have a demat account and I have not traded in any derivatives.

(b) I have demat account no _________________ in ____________________

depository participant but I have not traded in any equity shares or
derivatives in this account.
(c) I have a joint demat account no _________________ in
____________________ depository participant but I am not the first
account holder.
2. I hereby declare that I have read and understood all the terms and conditions
of the Rajiv Gandhi Equity Savings Scheme.
3. It is hereby verified that I am an eligible new retail investor for availing the
benefits under the Rajiv Gandhi Equity Savings Scheme.
4. I undertake to abide by all the requirements and fulfill all obligations under
the Scheme, and will comply with all the terms and conditions of the Scheme.
5. I understand that, in case I fail to comply with any condition specified in the
Scheme, the benefits availed there under will be withdrawn and the tax shall
be payable by me accordingly.
Signature of the Investor
Place:
Date:
* Tick which ever is appropriate.

Form B
[See paragraph 6(c) and (d)]
Declaration to be submitted by the new retail investor to the depository
participant on purchase of eligible securities.
To
Depository participant
Address
It is hereby informed that I have demat account no _________________ in
____________________ depository participant and the following securities
(a)

(b)
(c)
(d)
(e) purchased in the aforesaid demat account on ______________are not to be included
as investment for the purpose of the Rajiv Gandhi Equity Savings Scheme.

Signature
Name of the Investor:
(first holder)
Address of the investor:
Permanent Account Number (PAN):

Form C
[See paragraphs 10 and 11]
Annual report to be submitted by the depository to the Income Tax Department
th
in Electronic Format before 30 April.
(For 80 CCG benefits
of Financial Year
2012-13) 2012-13

2013-14
Report to be furnished by
30

April 2014

th

2014-15
Report to be furnished by
30

April 2015

2015-16
Report to be furnished by 30

th

April 2016

th

Report to be furnished by
30 April
Name
th

2013
PAN

DEMAT
A/c No.

Date of
opening
A/c

Date of
investme
nt for the
Purpose
of lock-in
(date of
making
the last
investme
nt in
RGESS#
eligible
scrip)

Amount
of
Investme
nt

Scrips
locked in
RGESS#

Whether
A/c
eligible
under
the
RGESS#
Scheme

Whether
A/c
complian
t with
RGESS#
with
respect
to fixed
lock-in*

Whether
A/c
complian
t with
RGESS#
with
respect
to 270
days
period*

Whether
A/c
complian
t with
RGESS#
with
respect
to 270
days
period*