hp guidelines for proof submission_2013-14

IndexSL.NO. SECTION

1 10 (13A)2 103 80D4 80DD5 80DDB6 80E7 80G8 80U9 80C

10 80C11 80C12 80C13 80C14 80C15 80C16 80C17 80C18 80C19 80C20 80C21 80C22 80CCC23 80CCG24 80TTA25 2426 80EE27 2428 192 (2)29 NA30 206AA

IndexCOMPONENTSHouse Rent AllowanceChildren Education AllowanceMedical InsuranceMaintenance /Medical treatment of Handicapped dependentsMedical Treatment For Specific DiseasesEducation Loan Interest BenefitDonation To Certain Funds, Charitable Institution Etc.Medical Treatment for Phicially HandicappedPF / VPF / LIC Deduction through salaryLife Insurance PremiumPublic provident fund (PPF)NSC InterestNational Savings Certificate (NSC)Fixed Deposit in a Scheduled BankUnit Linked Insurance PlanMutual Fund / ELSSInfrastructure BondsChildren Tuition FeesDeposit under Senior Citizens Saving SchemeFive Yr Time Deposit Scheme in Post OfficeHousing Principle including Registration/ Stamp DutyPension PolicyRajiv Gandhi Equity Savings SchemeInterest on Savings Bank accountLoss on Self-Occupied house property (Housing loan interest)Additional Deduction in respect of housing loan interest for the first house property acquired in FY 13-14Loss / Income on Let out House Property (Housing loan interest)Previous Employment DetailsDependent DetailsPAN Mandatory for all Salaried Employees

IndexSHORT CUTHRACEA80D80DD80DDB80E80G80U80C80C80C80C80C80C80C80C80C80C80C80C80C80CCC80CCG80TTASELF80EELETOUTPREV EMPDEPENDENTPAN

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Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED

10 (13A)

Photocopies of rent receipts

Rent Receipt without Landlord Signature

House Rent Allowance

Any one month Original Rent Receipts for each Quarter pertaining to current financial year (Apr ’13 to Mar ‘14)

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 Revenue stamp to be affixed (Mandatory to the locations other than karnataka)

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)

If Loss on self-occupied property is claimed for the same period and same city, then HRA rent is disallowed for the overlapping period

Employees, who have joined the company in between the year i.e. after 1st Apr 2013, should submit Rent Receipt only for the period with the current employer (from Date of Joining till the proof submission month)

Maintenance and electricity charges are not considered. Only actual rent paid will be considered

If the Rent paid by the employee is less than Rs. 3000/- , the attached declaration form may be used to claim HRA Exemption for the period April ’13 to March ’14

Rent Receipts editable format is available at Hrworkways under My Reports -> Claim Forms -> Rent Receipt.Rent Receipt non editable format is also attached for your reference.

Rent Receipt

Declaration for Rent below Rs. 300

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10 (14)Children Education

Allowance

Applicable only if employee has children education allowance as part of earnings

Rs.100/- per month per child, for maximum of two children.

Exemption will not be provided, if number of school / hostel going children is not updated in IPSF Main screenNo Proofs required. Number of school /hostel going children

to be updated in IPSF Main screen to provide necessary exemption

Additionally, Rs.300/- per month per child if the child / children are in hostel.

Exemption will be prorated from Date of Joining of current employer

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80D

Only Premium amount is allowed

Medical Insurance

Photocopy of the receipt and insurance certificate issued by the Insurance Company

Least of the premium paid or amount mentioned below is exempt

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

Receipts should be of the current financial year only (Apr’13 – Mar’14)

Limited to Rs.15000/- In case of Individual, Spouse & Children Parents in Law Medical insurance through payroll

deduction will not be allowed u/s 80D

Receipt / Certificate should specify that benefit eligible u/s 80D (Mediclaim Insurance)

Limited to Rs.30000/- In case of Individual, Spouse, Children and parents below 60 years

Late payment charges and service tax will not qualify for the benefit.

(If Parents Medical Insurance is recovered through salary, proof for the same is not required and tax benefit will be given as per the deduction made through salary).

Limited to Rs.35000/- In case of Individual, Spouse, Children and any one parent above 60 years

Preventive heath check up is allowed for deduction upto Rs 5,000, within the overall deduction limit.

In case of premium's falling due after the proof cut off date, previous year's receipt should be enclosed before the cut off date. The proof will be undertaken by us and given the option for updating the future payments through IPSF in hrworkways by choosing the option as “Future” from the drop down.

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80DDMaintenance /Medical

treatment of Handicapped dependents

Photocopy of certificate (Form - 10 IA)issued by the competent medical authority in a Government Hospital specifying the % of disability

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

Form 10 IA will not be considered, if the expiry date is before 01-Apr-2013. Handicapped dependant in his individual returns should ensure that he is not claiming the benefit u/s 80U.

Self-declaration mentioning amount spent on treatment, training or rehabilitation of the handicapped dependent or receipt of the amount paid to LIC/UTI for the policy

Where condition of disability requires reassessment, fresh certificate to be obtained after its expiry to continue claiming the deduction

Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED

80DDB Deduction in respect of Medical Treatment

Submit a certificate in form 10-I,from a neurologist, Oncologist,Urologist, Haematologist, Immunologist or other specialist as as mentioned in Rule 11DD.

Applicable for the assessee or their dependant husband/wife,,children, parents, brothers and sisters of the tax payer.

MAIN MENU

Proof Submission Guidelines for the financial year 2013-14TAX BENEFIT FOLLOWING WILL BE DISALLOWED

Rs.40000/- for his assessee or dependant, and in case of senior citizen Rs.60000/- or

actual expenditure whichever is lower. Further the deduction amount will be reduced from the amount recovered from the insurer

or from the employer

Form 10-I will not be considered, if the expiry date is before 01-Apr-2013. Actual expenditure bills

also to be supported/submitted to claim the benefit along with the form 10-I

Form 10I_80DDB.pdf

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80E

No capping of maximum limit

Said loan is an Educational Loan and qualify for benefit u/s 80EEducation Loan Interest Benefit

Eligible if loan is availed by the employee for self, spouse or children for pursuing higher education on or after 01-Apr-2006

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

Provisional certificate pertaining to current financial year only (Apr ’13 – Mar ’14) from the Bank / Financial Institution specifying the following:

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

Break up of principle and interest paid on the loan in the current financial year (Apr’13–Mar’14)

Interest paid for the first 8 years on loans taken for Higher Education such as Engineering / Medical etc

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80G

Donation To Certain Funds,

Charitable Institution Etc.

Employer would not provide the benefit, since assessee needs to claim while filing his/her return

Assessee needs to claim benefit while filing his/her individual returns.

Do not attach any proofs and will not be returned back in case of proofs attached.

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80UMedical Treatment for Phicially Handicapped-

Only Self

Photocopy of certificate (Form - 10 IA)issued by the competent medical authority in a Government Hospital specifying the % of disability No benefit if disability is < 40%

Rs.50000/- if disability is > 40% & <=80% Rs.100000/- if disability is >80%

Form 10 IA will not be considered, if the expiry date is before 01-Apr-2013Where condition of disability requires reassessment, fresh

certificate to be obtained after its expiry, to continue claiming the deduction.

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80C

80C

Late payment fees will not be considered

Policy for parents are disallowed

Policy can be in the name of individual, spouse and children

Policy should specify that benefit eligible u/s 80C

80C

Photocopy of stamped challan or PPF passbook

Public Provident fund should be in the name of individual

Receipts should be of the current financial year only (Apr’13 – Mar’14)

80C NSC Interest

Photocopy of all the certificates for which interest is being claimed.

NSC certificate should have been taken on or after 01-Apr-2008

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

PF / VPF Deduction

through salary

PF & VPF deduction through payroll will be considered directly for deduction u/s 80C. No proof required for the same.

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

Do not attach payslips or Tax computation sheets as proof. since the same will be picked from salary deductions automatically for tax calculations.

Life Insurance Premium

Photocopy of receipts issued by the Insurance Company, pertaining to current financial year (Apr ’13 – Mar ’14)


Policy can be from any approved company by IRDA(Insurance Regulatory & Development Authority)

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


Public provident fund (PPF)

Maximum deduction is allowed under this scheme is Rs.100000/- per PPF Account

Counterfoil alone does not constitute as proof. Passbook is mandatory


Current year certificates do not qualify for interest benefit. Should be submitted under NSC

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

Certificates in the name of spouse, children and parents are disallowedCalculation of Interest is mandatory as per the NSC interest calculation table given

along with the IPSF

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80CCC Pension Policy

Late payment fees will not be considered

Policy for parents are disallowedPolicy can be in the name of individual, spouse and children

Policy should specify that benefit eligible u/s 80CCC (Pension)

Photocopy of receipts issued by the Insurance Company, pertaining to current financial year (Apr ’13 – Mar ’14)


Policy can be from any approved company by IRDA(Insurance Regulatory & Development Authority)

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


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80CCGRajiv Gandhi

Equity Savings Scheme

Copies of A&BA. 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 5.IPO(intial public offers) of PSUs. 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,

B. Copy of Form A - declaration to be submitted by depository participant, or copy of Form B -declaration to be submitted by the new retail investor.

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

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 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,

Tax Benefit will not be extended, If the gross total income exceeds Rs. 12 lakhs;

Investment made in companies other the the listed.

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80TTA

Interest from Fixed Deposit will be disallowed

Interest on Savings Bank

account

Self-declaration from the employee mentioning the total interest earned only from the savings account during the FY Apr ’13 – Mar ’14.

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

Interest from non savings account will be disallowed

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24Loss on Self-Occupied

house property (Housing loan interest)

Provisional certificate pertaining to current financial year (Apr ’13 – Mar ’14) with breakup of interest and principle from the Housing Finance Company / Bank.

Capped to a maximum of Rs.150000/- only i.e. Total amount allowed for a property is Rs.150000/-. 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

In case of Joint loan, declaration specifying the % of benefit claimed by the individual

Loan taken before 01/04/1999, interest restricted to Rs.30000/-

Housing loan interest deduction through payroll will be considered. No proof required

Housing Loan interest taken for renovation/repairs restricted to Rs.30000/-

Bank statement showing only EMI deduction will be disallowed

Possession Letter from Builder / Completion certificate from Municipal authority required, if possession is after proof cut-off date

If property is not occupied within 3 years of loan sanction date, benefit is restricted to Rs.30000/-

Interest benefit cannot be claimed, unless the property is in possession on or before 31-Mar-2014.

Possession Letter from Builder or through self declaration from the employee is mandatory as per IT circular no 8/2012, dated 5th October 2012.

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.

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 let-out

D8

The house so acquired or constructed should be completed within3 years from the end of the FY in which the capital was borrowed. Hence it is necessary for the DDO (Drawing and Disbursing Officer) to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee

Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT

80EE

Additional Deduction in respect of housing loan interest for the first house property acquired in

FY 13-14

MAIN MENU

Proof Submission Guidelines for the financial year 2013-14PROOF TO BE SUBMITTED

In case of Joint loan, declaration specifying the % of benefit claimed by the individual

Housing loan interest deduction through payroll will be considered. No proof required

The deduction shall be subject to the following conditions:1. The loan is sanctioned by the financial institution during the period beginning on April 1, 2013 and ending on March 31, 2014.2. The amount of loan sanctioned for acquisition of the residential house property does not exceed 25 lakh rupees;3. The value of the residential house property does not exceed 40 lakh rupees;4. The assessee does not own any residential house property on the date of sanction of the loan.


Declaration from the employee that he does not own any other residential house property on the date of sanction of the loan (Format will be shared once it is finalized)

Possession Letter from Builder / Completion certificate from Municipal authority required, if possession is after proof cut-off date

Possession Letter from Builder or through self declaration from the employee is mandatory as per IT circular no 8/2012, dated 5th October 2012.

D10

The house so acquired or constructed should be completed within3 years from the end of the FY in which the capital was borrowed. Hence it is necessary for the DDO (Drawing and Disbursing Officer) to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee

Proof Submission Guidelines for the financial year 2013-14TAX BENEFIT FOLLOWING WILL BE DISALLOWED

Maximum deduction allowed under Sec-80EE is Rs.100000/-

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


Interest benefit cannot be claimed, unless the property is in possession on or before 31-Mar-2014.

Additional benefit on Interest would not be provided if Declaration is not submitted towards Sec 80EE

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24

No cap on maximum amount

Loss / Income on Let out House

Property (Housing loan interest)



In case of Joint loan, declaration specifying the % of benefit claimed by the individual If the loan is availed for house

renovation purpose, then the benefit would be restricted to

Rs.30,000/- per annum

Interest benefit cannot be claimed, unless the property is in possession on or before 31-Mar-2014Form 12C or Computation of Loss / Income as per rule is mandatory.

Template available on IPSF Online calculations

If the premises is left vacant / occupied by family, as per Section23 (1) (c), Notional Rental Income has to be arrived and then, the net loss has to be arrived.

Loan taken before 01/04/1999, interest restricted to Rs.30000/-

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

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

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Proof Submission Guidelines for the financial year 2013-14

Section B Chapter VI A SECTION1 Medical Insurance 80D2 Medical Treatment for Handicapped Dependent 80DD3 Medical Treatment for Specified Disease 80DDB4 Interest on Education Loan 80E

5 80EE6 Donations to Certain Funds, Charitable Institution etc., 80G7 Permanent Physical Disability including Blindness 80U

Section C Section 80C/80CCE/80TTA SECTION8 Provident Fund - PF 80C9 Voluntary Provident Fund - VPF 80C

10 Life Insurance - LIC 80C11 Public Provident Fund - PPF 80C12 National Savings Certificate - NSC 80C13 Infrastructure Bonds - IBOND 80C14 Tution Fees - TF 80C15 Mutual Fund - MF 80C16 Equity Linked Savings Scheme - ELSS 80C17 Unit Linked Insurance Plan - ULIP 80C18 5-Yr bank fixed deposits (FDs) 80C19 Senior Citizen Savings Scheme 2004 (SCSS) 80C20 5-Yr post office time deposit (POTD) scheme 80C21 NABARD rural bonds 80C22 Interest on NSC 80C23 Stamp Duty & Registration Charges 80C24 Home Loan Principal Repayment 80C25 Pension Policy - 80CCC 80CCC26 Rajiv Gandhi Equity Savings Scheme 80CCG27 Interest on Savings Bank account - 80TTA 80TTA

Section D Housing Loan Details SECTION28 Self Occupied Property 24

29 Let Out Property 24

Additional Deduction in respect of housing loan interest for the first house property acquired in FY 13-14

MAIN MENU

C3

1. Rs.15000- In case of Individual, Spouse & Children 2. Additional benefit of 15000/- in case of parents below 65 years and Rs.20000 in case of parents above 65 years (Senior citizens)

C4

1. Limited to Rs.50000 (<=80% disability) 2. Rs.1Lakh (>80% disability)

C5

Expenditure must be actually incurred by resident assessee on himself or dependant relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule HDD. A certificate in form 101 is to be furnished by the assessee from any registered doctor

C6

Interest paid for the first 8 years on loans taken for Higher Education such as Engineering / Medical etc Eligible if loan is availed by the employee for self spouse & children for pursuing higher education Loans availed only from Financial Institution / Bank only is eligible

C7

Interest on loan taken for residential housing property: An individual is allowed to claim a deduction upto Rs.1,00,000/- from his taxable salary income to the extent the same relates to interest paid on loan borrowed from a financial institution. This is subject to the satisfaction of the following conditions: Loan is sanctioned during 01.04.2013 to 31.03.2014; Loan amount does not exceed Rs.25 lakhs; Value of house property does not exceed Rs.40 lakhs; The assessee does not own any other residential house property on the date of sanction of loan. The deduction referred above is in addition to the deduction with respect to interest payable on housing loan that is available in determining the income from house property.

C8

The various donations specified in Sec.80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec 80G

C9

1. Limited to Rs.50000 (<=80% disability), 2. Rs.1.0 lakh (>80% disability

C11

Provident Fund (PF) & Voluntary Provident Fund (VPF: PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments.

C12

You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.

C13

Life Insurance Premiums: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.

C14

1. An individual can open public provident fund account in his own name or in the name of minor of whom he is the guardian. One can get the deduction u/s 80c, deposit in his own account, or his/her spouse or in the account of his /her children. 2. Public Provident Fund (PPF): Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 1,00,000 w.e.f 01st December 2011. A point worth noting is that interest rate is assured but not fixed.

C15

National Savings Certificate (NSC): National Savings Certificate (NSC) is a 6-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is eight per cent compounded half-yearly, i.e., the effective annual rate of interest is 8.16%. If you invest Rs 1,000, it becomes Rs 1601 after six years. The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

C16

Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.

C17

1. Only amount mentioned as ‘Tuition Fee’ in the fee receipt will be considered for deduction. 2. Donations, Capitation fees, Computer fees, Uniform fee, Sports fee etc., are not allowed. 3. Tuition fees paid supported by receipts issued by the school, college, university or educational institution. 4. Tuition Fee paid is eligible for deduction u/s 80C for maximum of two children.

C18

There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.

C19

Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.

C20

ULIP should be taken on his own life, life of the spouse or any child.

C21

5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

C22

Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.

C23

5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per cent rate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.

C24

NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.

C25

1. NSC interest should be taxed under the head “Other Income”. 2. NSC Interest Rates NSC Purchased after 01/04/2003 First Year - 8.16% Second Year - 8.83% Third Year - 9.55% Fourth Year - 10.33% Fifth Year - 11.17% Sixth Year - 12.08%

C26

Stamp Duty and Registration Charges for a home: The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

C27

Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.

C28

Pension Funds – Section 80CCC: This section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it maeans that the total deduction available for 80CCC and 80C is Rs. 1 Lakh.This also means that your investment in pension funds upto Rs. 1 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed Rs. 1 Lakh.

C32

If employee is staying in an own house in which he has availed the Housing Loan benefit, then it will be treated as “Self Occupied Property”. Following are the maximum limit for “Self Occupied Property”: In case of self-occupied property Interest on borrowed capital is allowed up to Rs.1,50,000/- and no other deduction is allowed. The acquisition or construction of the house should be completed within three years from the end of the financial year in which the loan was obtained. However, it is made mandatory that the associate shall provide a certificate from the lender specifying the interest payable and that the interest is payable towards the capital borrowed for construction or acquisition of a house. Interest on borrowed capital is allowed only after construction or purchase of a house property is completed. However 1/5th of pre-construction interest can be added to the current year interest payment. In any case the maximum interest to be claimed in a given year can’t exceed Rs.1,50,000/-. If capital is borrowed for repairs/renewal/reconstruction then the maximum amount of deduction is restricted to Rs 30,000/-

C33

In respect of a let out property it is assumed that the employee has property & has given for rent to some one & receiving the rental income. There is no limit towards claiming the deduction benefit on account of Housing Loan Interest in respect of let out property. To claim the deduction in respect of housing loan interest, the employee should furnish the “Housing Loan Interest Provisional Certificate” from the bank or a lender that clearly specifying the amount of interest payable by such employee for the purpose of construction or acquisition of the residential house. In case of let out property employee also needs to submit the “Let Out” computation sheet

Dependents Eligible for Tax BenefitIndividual, Spouse, Children & ParentsIndividual, Spouse, Children, Parents, Dependant Brothers & SistersIndividual, Spouse, Children, Parents, Dependant Brothers & SistersIndividual, Spouse & Children

IndividualIndividualIndividualDependents Eligible for Tax BenefitIndividualIndividualIndividual, Spouse & ChildrenIndividualIndividualIndividualUpto 2 Children of an individualIndividualIndividualIndividual, Spouse & ChildrenIndividualIndividualIndividualIndividualIndividualIndividualIndividualIndividual, Spouse & ChildrenIndividualIndividualDependents Eligible for Tax BenefitIndividual

Individual

E3

1. Rs.15000- In case of Individual, Spouse & Children 2. Additional benefit of 15000/- in case of parents below 65 years and Rs.20000 in case of parents above 65 years (Senior citizens)

E4

1. Limited to Rs.50000 (<=80% disability) 2. Rs.1Lakh (>80% disability)

E5

Expenditure must be actually incurred by resident assessee on himself or dependant relative for medical treatment of specified disease or ailment. The diseases have been specified in Rule HDD. A certificate in form 101 is to be furnished by the assessee from any registered doctor

E6

Interest paid for the first 8 years on loans taken for Higher Education such as Engineering / Medical etc Eligible if loan is availed by the employee for self spouse & children for pursuing higher education Loans availed only from Financial Institution / Bank only is eligible

E7

Interest on loan taken for residential housing property: An individual is allowed to claim a deduction upto Rs.1,00,000/- from his taxable salary income to the extent the same relates to interest paid on loan borrowed from a financial institution. This is subject to the satisfaction of the following conditions: Loan is sanctioned during 01.04.2013 to 31.03.2014; Loan amount does not exceed Rs.25 lakhs; Value of house property does not exceed Rs.40 lakhs; The assessee does not own any other residential house property on the date of sanction of loan. The deduction referred above is in addition to the deduction with respect to interest payable on housing loan that is available in determining the income from house property.

E8

The various donations specified in Sec.80G are eligible for deduction upto either 100% or 50% with or without restriction as provided in Sec 80G

E9

1. Limited to Rs.50000 (<=80% disability), 2. Rs.1.0 lakh (>80% disability

E11

Provident Fund (PF) & Voluntary Provident Fund (VPF: PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments.

E12

You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.

E13


E14

1. An individual can open public provident fund account in his own name or in the name of minor of whom he is the guardian. One can get the deduction u/s 80c, deposit in his own account, or his/her spouse or in the account of his /her children. 2. Public Provident Fund (PPF): Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 1,00,000 w.e.f 01st December 2011. A point worth noting is that interest rate is assured but not fixed.

E15

National Savings Certificate (NSC): National Savings Certificate (NSC) is a 6-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is eight per cent compounded half-yearly, i.e., the effective annual rate of interest is 8.16%. If you invest Rs 1,000, it becomes Rs 1601 after six years. The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

E16

Infrastructure Bonds: These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.

E17

1. Only amount mentioned as ‘Tuition Fee’ in the fee receipt will be considered for deduction. 2. Donations, Capitation fees, Computer fees, Uniform fee, Sports fee etc., are not allowed. 3. Tuition fees paid supported by receipts issued by the school, college, university or educational institution.

E18

There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.

E19

Equity Linked Savings Scheme (ELSS): There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.

E20

ULIP should be taken on his own life, life of the spouse or any child.

E21

5-Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

E22

Senior Citizen Savings Scheme 2004 (SCSS): A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.

E23

5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per cent rate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.

E24

NABARD rural bonds: There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify under section 80C.

E25

1. NSC interest should be taxed under the head “Other Income”. 2. NSC Interest Rates NSC Purchased after 01/04/2003 First Year - 8.16% Second Year - 8.83% Third Year - 9.55% Fourth Year - 10.33% Fifth Year - 11.17% Sixth Year - 12.08%

E26

Stamp Duty and Registration Charges for a home: The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

E27

Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.

E28


E32

If employee is staying in an own house in which he has availed the Housing Loan benefit, then it will be treated as “Self Occupied Property”. Following are the maximum limit for “Self Occupied Property”: In case of self-occupied property Interest on borrowed capital is allowed up to Rs.1,50,000/- and no other deduction is allowed. The acquisition or construction of the house should be completed within three years from the end of the financial year in which the loan was obtained. However, it is made mandatory that the associate shall provide a certificate from the lender specifying the interest payable and that the interest is payable towards the capital borrowed for construction or acquisition of a house. Interest on borrowed capital is allowed only after construction or purchase of a house property is completed. However 1/5th of pre-construction interest can be added to the current year interest payment. In any case the maximum interest to be claimed in a given year can’t exceed Rs.1,50,000/-. If capital is borrowed for repairs/renewal/reconstruction then the maximum amount of deduction is restricted to Rs 30,000/-

E33

In respect of a let out property it is assumed that the employee has property & has given for rent to some one & receiving the rental income. There is no limit towards claiming the deduction benefit on account of Housing Loan Interest in respect of let out property. To claim the deduction in respect of housing loan interest, the employee should furnish the “Housing Loan Interest Provisional Certificate” from the bank or a lender that clearly specifying the amount of interest payable by such employee for the purpose of construction or acquisition of the residential house. In case of let out property employee also needs to submit the “Let Out” computation sheet

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Proof Submission Guidelines for the financial year 2013-14

hp guidelines for proof submission_2013-14

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