Third quarter of this current financial year 2017-18 is near to end. All employees who earn more than taxable limits has to submit their investment/expenses proof, which makes them eligible to get benefit of tax saving option provided by Income Tax Department, to their Employer / HR department for the year 2017-18.
Since the Income Tax Department made it very clear to all employer to verify the geniuses of each claim made by their employee (vide Circular No.01/2017). This submission is subject to TDS deduction on Salary. Employers have right to act as per guidelines in accordance with the income tax rules to safeguard the interest of the organisation.
Here some list of document pertaining to Expenses/Investment proof needs to submit with employers for the TDS purpose.
| Tax Section | Guidelines |
|---|---|
| Rent Payments |
Monthly rental receipts
Following information is mandatory in the rent receipt.
Landlord’s name and address, signature of the Landlord.
Landlord’s PAN or a self-declaration, in case the annual rent amount is greater than 1.0 lakh.
Revenue stamp to be affixed for the cash payments. |
| Insurance Premium/ULIP/ Pension scheme. |
Premium receipts paid during current financial year, in name of self, spouse, children.
|
| Children Tuition Fees. |
Copy of Tuition Fees paid to educational institution.
Payment in nature of Donations, Capitation fees, Uniform fee, Sports fee, Van Fees, Shoes & Sock etc., are not allowed. |
| Public Provident Fund- PPF |
Copy of the stamped deposit receipt, paid during current financial year or
Copy of the Passbook with clear mention as PPF Account |
| National Saving Certificate (NSC) And Interest accrued on NSC deposited in the earlier FYs. | Copy of NSC certificate in the name of employee.
Copy of the NSC’s purchased in the previous FYs.
Interest accrued will be considered as other income too. |
MEDICLAIM – Deduction U/S 80 D – including preventive health checkup.
Employee, spouse, dependent children, and parents |
Copy of premium receipt paid during the FY.
Receipt of payment of preventive health check-up of the employee or family |
| Tax Saving Mutual Funds |
Copy of investment certificate with the employee name, Investment Date, Amount, Type of Investment.
Only the investments made under Tax Saving Fund / Plan will be considered |
| ELSS (Equity Linked Saving Scheme) |
Copy of investment certificate with the employee name, Investment Date, Amount, Type of Investment.
Only the investments made under Tax Saving Fund / Plan will be considered. |
| Income / Loss from House Property- Let out Property | Detailed calculation of Let out house property's income/loss. |
| Principal & Interest Repayment of Housing Loan | Interest certificate from the bank/financial institution with the total interest and principal paid/due for the FY. |
| Post Office –Term Deposit with more than 5 year term. | Copy of deposit receipt |
| Tax Saving Fixed Deposits with Scheduled Banks. | Copy of Deposit Receipt invested during current financial year, qualified benefit under Sec 80C of the Income Tax Act |
| Medical Treatment on Handicapped Dependent – Deduction U/S 80DD |
Proof of
a. Expenditure incurred towards medical treatment, training and rehabilitation of a handicapped dependent ., or
b. Amount paid or deposited under any scheme framed in this behalf by the LIC or UTI or any other insurer and approved by the Board for the maintenance of the handicapped dependent
c. Form 10-IA |
Medical Treatment Expenses for the specified disease – Deduction U/S 80DDB
|
Medical Bills / expenditure incurred by way of medical treatment for a specified disease along with a certificate from a hospital in the prescribed form.
Form 10-I |
| Interest paid on Higher Education Loan – Deduction U/S 80 E | Copy of Bank certificate stating that the loan and interest has been paid and amount payable during the financial year |
| Additional Deduction in respect of housing loan interest for the first house property acquired in FY 16-17 U/s 80EE |
Maximum deduction u/s 80EE is allowed Rs. 50000/-.
The deduction shall be subject to the following conditions:
1. Loan should be sanctioned during the Financial Year 2016-17
2. The amount of loan sanctioned for acquisition of the residential house property does not exceed 35 lakh rupees;
3. The value of the residential house property does not exceed 50 lakh rupees;
4. The assesse does not own any residential house property on the date of sanction of the loan.
All proofs should be provided, as applicable for loss on house property. |
| Donations eligible U/s 80G | Employers may not consider all the Donations for taxation, hence employees have to consider the same at the time of filing their personal returns and have to claim the tax refund |
| For Self – Permanent Disability – Deduction U/s 80 U |
Any Individual suffering from a permanent physical disability (including blindness) or is subject to mental retardation, on the production of medical certificate from Government Hospital in the prescribed form and manner, along with a Return of Income, shall be allowed a deduction of Rs.75000/-. Where such assessee is a person with severe disability, a deduction of Rs.125,000/- can be claimed.
(Photocopy of certificate (Form – 10 IA) issued by the competent medical authority specifying the % of disability) |
| For Self – Permanent Disability – Deduction U/s 80 U | Form 10 I-A |
| NPS – 80CCD(1B) | Copy of the stamped deposit receipt, paid during current financial year and copy of the Passbook with clear mention as NPS Account |
SUGGESTION TO EMPLOYEE ON TAX SAVING INVESTMENT/EXPENSES
Please review your tax liability of the year in start of the financial year.
Keep copy of all investment/ expenses related with year. This habit helps you and your employer to clear off tax liability and saves you from interest / penalty factor for less tax payment.
This habit also helps you to assess your options to invest in right investment scheme which are eligible under section 80C.
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