The Financial Year end is
round the corner, and shortly, all employees are required to submit the
investment proofs for the year 2015-16. Since the Income tax department made it
very clear to all employers to verify the geniuses of each claim made by the
employee (circular 20/2015), the document verification will be more
stringent from the employers as considered to the previous period.
Employers have the right to define the guidelines in accordance, with more
controls and riders, with the income tax rules, to safeguard the interest of
the organization.
DDOS TO SATISFY THEMSELVES
ABOUT THE GENUINENESS OF CLAIM:
“The Drawing and Disbursing
Officers should satisfy themselves about the actual deposits/ subscriptions /
payments made by the employees, by calling for such particulars/ information as
they deem necessary before allowing the aforesaid deductions. In case the DDO
is not satisfied about the genuineness of the employee’s claim regarding any
deposit/ subscription/ payment made by the employee, he should not allow the
same, and the employee would be free to claim the deduction/ rebate on such
amount by filing his return of income and furnishing the necessary proof etc., therewith,
to the satisfaction of the Assessing Officer”
A generic guidelines for
the investment document submission is as follows, employers still have right to
add more riders to it.
Taxation
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.
Loss on
self-occupied property and HRA exemption should be allowed in the same city-
(Ref: Notification 20/2015).
|
Interest
on Housing Loan- Self Occupied Property.
|
Interest
certificate from the bank/financial institution with the total interest and
principal paid/due for the FY.
Completion
certificate of the house property from the builder or
Self-declaration
from the employee with the details of occupation.
|
Income
/ Loss from House Property- Let out Property
|
Interest
certificate from the bank/financial institution with the total interest and
principal paid/due for the FY.
Completion
certificate of the house property from the builder or
Self-declaration
from the employee with the details of occupation.
Detailed
calculation of Let out income/loss.
|
Insurance
Premium/ULIP/Pension scheme.
|
Premium
receipts paid during current financial year, in name of self, spouse,
children.
|
National
Saving Certificate (NSC)
|
Copy
of NSC certificate in the name of employee.
|
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.
|
Interest
accrued on N S C deposited in the earlier FYs.
|
Copy
of the NSC’s purchased in the previous FYs.
Interest
accrued will be considered as other income too.
|
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
|
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.
|
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.
|
Principal
Repayment of Housing Loan
|
Same
as interest on housing loan mentioned above.
|
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.
|
80CCG –
RAJIV GANDHI EQUITY SAVINGS SCHEME
The
investment is made in listed equity shares/Mutual funds.
Deduction
is limited to 50% of the amount invested in such equity shares subject to a
maximum of Rs.25000/-
|
Mandatory
info.
Gross
Total Income of the employee for the financial year shall not exceed twelve
lakh rupees.
The
employee should be a new retail investor as specified under the scheme.
Copy of
the Form A submitted with the Depository Participant duly acknowledged.
Self
declaration from the employee duly attested by the Depository Participant.
|
MEDICLAIM
– Deduction U/S 80 D – including preventive health check up.
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.
|
Medical
Treatment on Handicapped Dependant – Deduction U/S 80 DD
|
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.
|
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.
|
Employees who joined after
1st April 2015 to the current organization, are requested to submit
their previous employment income and compute the consolidated tax liability for
the year. In absence they will liable to pay the differential tax with 18%
interest, while filing their personal return with income tax department..