Proof Submission Guidelines

SECTIONS COMPONENT

PROOF TO BE SUBMITTED

TAX BENEFIT

Original Rent Receipts one for each (Month / Quarter / Year) pertaining to current financial year (Apr 11 to Least of the below is exempt for Income
Mar 12)
Tax:
Actual HRA earned by the assessee
Rent Receipt should contain
for the year.
Rent paid for the period
Name and signature of landlord
Rent paid minus 10% of Basic
Complete address of the property
salary
Revenue stamp to be affixed (Not mandatory for Karnataka)
10 (13A)

House Rent
Allowance

Employees, who have joined the company in between the year i.e. after 1st Apr 2011, should submit Rent
Receipt only for the period with the current employer (from Date of Joining till the proof submission month)

40% of Basic or 50% of Basic (in

case of Metro cities)

Rent Paid more than 15000 per month should submit Landlord Pan No(Template Attached)

Rental Agreement is mandatory for rent amount greater than 5000

FOLLOWING WILL BE
DISALLOWED
Rent Agreement alone without rent
receipts
If Loss on self-occupied property is
claimed for the same period and same
city, then HRA rent is disallowed for the
overlapping period

Maintenance and electricity charges are

not considered. Only actual rent paid will
be considered
Rent receipt >Rs.15,000/- per month
without PAN will be rejected.

Photocopies of rent receipts

HRA Declaration for future months to be submitted. (Template attached)

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

Rs.100/- per month per child, for maximum

of two children.
Additionally, Rs.300/- per month per child if
No Proofs required. Number of school /hostel going children to be updated in EPSF Main screen to provide the child / children are in hostel.
necessary exemption
Exemption will be prorated from Date of
Joining of current employer
Photocopy of the receipt and insurance certificate issued by the Insurance Company
Least of the premium paid or amount
mentioned below is exempt
Receipts should be of the current financial year only (Apr11 Mar12)

80D

Medical
Insurance

Receipt / Certificate should specify that benefit eligible u/s 80D (Mediclaim Insurance)
Deduction through salary for parents will be considered. No proof required
Only Premium amount is allowed

80DD

80E

80U

Exemption will not be provided, if

number of school / hostel going children
is not updated in EPSF Main screen
Deduction through salary for parents in
law is not eligible as per IT Act

Limited to Rs.15000/- In case of

Individual, Spouse & Children
Limited to Rs.30000/- In case of
Individual, Spouse, Children and
Late payment charges and service tax
parents below 65 years
will not qualify for the benefit.
Limited to Rs.35000/- In case of
Individual, Spouse, Children and any
one parent above 65 years

Previous year receipts along with declaration to be submitted, if the policy is due after the proof submission
cut-off date
Maintenance Photocopy of certificate (Form - 10 IA)issued by the competent medical authority in a Government Hospital
specifying the % of disability (Template attached )
/Medical
Rs.50000/- if disability is <=80%
Form 10 IA will not be considered, if the
Self-declaration mentioning amount spent on treatment, training or rehabilitation of the handicapped
treatment of
Rs.100000/- if disability is >80%
expiry date is on or after 01-Apr-2011
dependent or receipt of the amount paid to LIC/UTI for the policy
Handicapped
Where condition of disability requires reassessment, fresh certificate to be obtained after its expiry to
dependents
continue claiming the deduction
Eligible if loan is availed by the employee for self, spouse or children for pursuing higher education on or
before 01-Apr-2003
No capping of maximum limit
Provisional certificate pertaining to current financial year only (Apr 11 Mar 12) from the Bank / Financial
Institution
specifying
the
following:
Education Loan
Certificate of payment due cannot be
considered as proof of payment.
Interest Benefit Said loan is an Educational Loan and qualify for benefit u/s 80E
Actual interest paid by the employee during
Break up of principle and interest paid on the loan in the current financial year (Apr11Mar12)
the financial year is allowed in full as
Interest paid for the first 8 years on loans taken for Higher Education such as Engineering / Medical etc
deduction
Deduction in
case of
Disability-Only
Self

Photocopy of certificate (Form - 10 IA)issued by the competent medical authority in a Government Hospital
specifying the % of disability
Rs.50000/- if disability is <=80%
Rs.100000/- if disability is >80%
Where condition of disability requires reassessment, fresh certificate to be obtained after its expiry, to
continue claiming the deduction.(Template attached)

Form 10 IA will not be considered, if the

expiry date is on or after 01-Apr-2011

Page1of5

Proof Submission Guidelines

SECTIONS COMPONENT

80CCF

PROOF TO BE SUBMITTED

Photocopy of Receipts / Bond pertaining to current financial year only (Apr11 Mar12)
Long Term
Bond should be in the name of individual (Self only)
Infrastructure
Term should be > = 10 years.
Bonds
Receipt / Bond should specify that benefit eligible u/s 80CCF
Provisional certificate pertaining to current financial year (Apr 11 Mar 12) with breakup of interest and
principle from the Housing Finance Company / Bank.

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

24

Loss on SelfOccupied house

property
(Housing loan
interest)

Provisional certificate pertaining to current financial year (Apr 11 Mar 12) with breakup of interest and
principle from the Housing Finance Company / Bank.
In case of Joint loan, declaration specifying the % of benefit claimed by the individual

80CCC

Certificates in the name of spouse,

Maximum deduction is allowed under this children and parents are disallowed
scheme is Rs.20000/-, over and above Sec
Term less than 5 years is not eligible for
80C
benefit
Capped to a maximum of Rs.150000/- only If Self-occupied benefit and HRA is
claimed for the same period, in the
same city, then HRA benefit is
Loan taken before 01/04/1999, interest
disallowed for the overlapping period
restricted to Rs.30000/Housing Loan interest taken for
Bank statement showing only EMI
renovation/repairs restricted to Rs.30000/- deduction will be disallowed

Pre-EMI interest (EMI paid before

occupation of the house) is deductible in 5
equal installments starting from the year
when the construction is completed or
property is acquired.
No cap on maximum amount

Loss / Income
on Let out
House Property
Form 12 C or Computation of Loss / Income as per rule is mandatory. (Template attached)
Loan taken before 01/04/1999, interest
(Housing loan
restricted to Rs.30000/If
the
premises
is
left
vacant
/
occupied
by
family,
as
per
Section23
(1)
(c),
Notional
Rental
Income
has
to
be
interest)
arrived and then, the net loss has to be arrived.
Notional rent to be taken as municipal valuation or the rent which similar property in the same locality would
fetch, whichever is higher. However, if standard rent is fixed for the property, then notional rent cannot
exceed the standard rent
Photocopy of receipts issued by the Insurance Company, pertaining to current financial year (Apr 11 Mar
12)
Policy can be from any approved company by IRDA(Insurance Regulatory & Development Authority)
Maximum deduction is allowed under this
Pension Policy Policy can be in the name of individual, spouse and children
scheme is Rs.100000/Policy should specify that benefit eligible u/s 80CCC (Pension)
Photocopy of previous year receipts are required for future months, as proof
Declaration for future months to be submitted

80C

80C

PF / VPF / LIC
Deduction
Deduction through payroll will be considered. No proof required for the same.
through salary
Photocopy of receipts issued by the Insurance Company, pertaining to current financial year (Apr 11 Mar
12)
Policy can be from any approved company by IRDA(Insurance Regulatory & Development Authority)
Life Insurance Policy can be in the name of individual, spouse and children
Premium
Policy should specify that benefit eligible u/s 80C

Maximum deduction is allowed under this

scheme is Rs.100000/-

Interest benefit cannot be claimed,

unless the property is in possession on
or before 31-Mar-2012.

Computation of net loss without

considering Notional Rental Income will
be disallowed
Late payment fees will not be
considered
Policy for parents are disallowed
Future period benefits will not be
provided, if declaration / previous year
receipts is not submitted
Do not attach payslips or Tax
computation sheets as proofs

Maximum deduction is allowed under this

scheme is Rs.100000/-

Policy for parents are disallowed

Maximum deduction is allowed under this

scheme is Rs.100000/- per PPF Account

Counterfoil alone does not constitute as

proof. Passbook is mandatory

Declaration for future months to be submitted

Photocopy of stamped challan or PPF passbook
Public provident
Public Provident fund should be in the name of indvidual only
fund (PPF)
Receipts should be of the current financial year only (Apr11 Mar12)

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
Bank statement showing only EMI
deduction will be disallowed

Late payment fees will not be

considered

Photocopy of previous year receipts are required for future months, as proof

80C

FOLLOWING WILL BE
DISALLOWED

If property is not occupied within 3 years of Interest benefit cannot be claimed,

unless the property is in possession on
loan sanction date, benefit is restricted to
or before 31-Mar-2012.
Rs.30000/Possession Letter from Builder / Completion certificate from Municipal authority required, if possession is
after proof cut-off date

24

TAX BENEFIT

Future period benefits will not be

provided, if declaration / previous year
receipts is not submitted

Page2of5

Proof Submission Guidelines

SECTIONS COMPONENT

PROOF TO BE SUBMITTED

NSC Interest

Maximum deduction is allowed under this

scheme is Rs.100000/-

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

NSC Interest declared will also be

Current year certificates do not qualify

for interest benefit. Should be submitted
under NSC
Certificates in the name of spouse,

accounted as Other Income and taxed

children and parents are disallowed

Calculation of Interest is mandatory as per the NSC interest calculation table given along with the EPSF
Photocopy of receipts / certificates pertaining to current financial year only (Apr 11 Mar 12)
80C

National
Savings
Certificate
(NSC)

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

Maximum deduction is allowed under this

scheme is Rs.100000/-

Photocopy of the certificate / bond issued by the scheduled bank should be of the current financial year only
(Apr 11 Mar 12)
80C

FOLLOWING WILL BE
DISALLOWED

NSC certificate should have been taken on or after 01-Apr-2004

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

80C

TAX BENEFIT

Fixed Deposit in
Term deposits for a minimum period of 5 years with a scheduled bank are eligible for deduction
a Scheduled
Policy should specify that benefit eligible u/s 80C. If not specified, letter from the bank specifying the
Bank
eligibility u/s 80C is required
Certificate should be in the name of individual (Self only)

Previous year certificates do not qualify.

Should be submitted against NSC
Interest only
Certificates in the name of spouse,
children and parents are disallowed
Certificates in the name of spouse,
children and parents are disallowed

Maximum deduction is allowed under this

scheme is Rs.100000/-

Payment Receipts or copy of cheque

alone does not constitute as proof.
Photocopy of certificate / bond is
mandatory

Photocopy of Receipts / Statements pertaining to current financial year only (Apr11 Mar12)
80C

Unit Linked Receipt can be in the name of individual, spouse and children
Insurance Plan Policy should specify that benefit eligible u/s 80C

Maximum deduction is allowed under this

scheme is Rs.100000/-

Future period benefits will not be

provided, if declaration is not submitted

Declaration for future months to be submitted

80C

Photocopy of Receipts / Statements pertaining to current financial year only (Apr11 Mar12)- Specified
funds only
Mutual Fund / Receipt should be in the name of individual (Self only)
ELSS
Policy should specify that benefit eligible u/s 80C

Maximum deduction is allowed under this

scheme is Rs.100000/-

Declaration for future months to be submitted

Photocopy of Receipts / Bond pertaining to current financial year only (Apr11 Mar12)
80C

Infrastructure Bond should be in the name of individual (Self only)

Bonds
Term should be > = 3 years
Receipt / Bond should specify that benefit eligible u/s 80C

Maximum deduction is allowed under this

scheme is Rs.100000/-

Photocopy of Receipts for tuition fees paid, pertaining to current financial year only (Apr11 Mar12)
80C

Children Tuition Photocopy of Receipts for term fees paid, pertaining to current financial year only (Apr11 Mar12)
Fees
Only amount mentioned as Tuition Fee in the fee receipt will be considered for deduction
Declaration for future months to be submitted

Maximum deduction is allowed under this

scheme is Rs.100000/-

Certificates in the name of spouse,

children and parents are disallowed
Future period benefits will not be
provided, if declaration is not submitted
Certificates in the name of spouse,
children and parents are disallowed
Term less than 3 years is not eligible for
benefit
Donations, Capitation fees, Computer
fees, Uniform fee, Sports fee etc., are
not allowed
Future period benefits will not be
provided, if declaration is not submitted

80C

Deposit under Eligible only if the employee is a Sr. Citizen. Sr.Citizen is >= 65 years, as per Income Tax Act
Senior Citizens Bond should be of the current financial year only (Apr11 Mar12)
Saving Scheme Policy should specify that benefit eligible u/s senior citizen saving scheme

Maximum deduction is allowed under this

scheme is Rs.100000/-

Bonds in the name of spouse / children

disallowed

80C

Copy of the Receipt/certificate issued by the Post office

Five Yr Time
Deposit Scheme Certificate should be in the name of individual (Self only)
in Post Office Time deposit for a period of 5 years with a post office is eligible for deduction.

Maximum deduction is allowed under this

scheme is Rs.100000/-

Certificates in the name of spouse,

children and parents are disallowed

Maximum deduction is allowed under this

scheme is Rs.100000/-

Bank statement showing only EMI

deduction will be disallowed

80C

Housing
Principle
including
Registration/
Stamp Duty

Provisional certificate pertaining to current financial year (Apr 11 Mar 12) with breakup of interest and
principle from the Housing Finance Company / Bank.
In case of Joint loan, declaration specifying the % of benefit claimed by the individual
Photocopy of Sale Deed and Stamp Duty Paid Receipt pertaining to current financial year (Apr 11 Mar
12)

Page3of5

Previous Employment Details

Who is eligible?
Employees who has worked in any other company before joining the current company, within the financial year (Apr 11 Mar 12) and whose Date of Joining is after 1 st April 2011
What is considered Previous Employer Income?
The Income after Sec 10 exemption is considered as Previous Employer Income. This includes all earnings earned till the Date of leaving for the current financial year (From Apr 11 onwards) including perquisites after
deducting section 10 exemptions.

Proof to be submitted:
1.
2.

Photocopy of Form 16 or Tax computation sheet, affixed with seal & signature or Digital Signature from the previous employer along with a declaration in Form 12B.
The Income after Sec 10 exemption, Professional Tax / Provident Fund/ VPF and Income tax deducted, will be considered along with the current employment income, to arrive at net tax liability for the year 2011-2012.

3. Where the previous employer has granted Deductions for Investments made, including Housing Loan interest deduction / Other Income reported proofs will have to be re-submitted to the current employer along with
the EPSF.

Tax Treatment:
Previous employment income, as per supporting, will be accounted for computing the tax liability for the year. While generating the Form16, the previous employment details will be removed. This treatment is supported by
the below circular from the IT department. You are expected to consolidate multiple employment details, while filing your individual returns
As per circular F.No.SW/09/03/2002-DIT(S)-798 dated 13/4/04 issued by the Directorate of Income Tax (Systems)
Section 192(2) of Income Tax Act, 1961 allows an employee who had more than one employer in financial year to furnish details of his salaries and TDS from the first employer in Form 12B(supported by
relevant proofs) to the second employer for the purpose of deduction of correct tax at source by the second employer. The relevant provisions required that in such a case, the second employer may deduct tax
at source at a lower rate and enclose Form 12B with his TDS returns. At present, in the TDS return for salary i.e. Form No.24, there is no column for furnishing of particulars of salary received/tax deducted by
the previous employer. Previously, the deductors used to furnish these details as a footnote in the TDS return. However, this cannot be done in electronic TDS return, as data structure does not support
provision of any footnote.The matter was referred to the CBDT. The CBDT has clarified that such problems can be resolved as under;
In cases of employees with more than one employer in a financial year, the deductor need to disclose only the salary paid and TDS made by him in the Form 24 being filed by him. In case this amounts to
deduction at a lower rate, then he can mention the words "12B' in the Remarks column of Form 24; and
Enclose Form 12B along with Form 27A, which the deductor is required to file along with his e-TDS return.
The circular clearly states that only current employers income and tax details should be shown in Form 24. Since Form 24 is an aggregation of Form 16s issued, Form 16 will display only the current employers income and
tax. However, while computing the tax liability for the full year, the previous employment income and tax will be accounted for. The same practice was followed in FY 2005-06.

Following will be disallowed:

1) Only Form 12B submitted will not be considered
2) Only payslips will not be considered

3) Tax computation with projections will not be considered

4) Tax computations of the current year only will be considered

5)PreviousyearsTaxcomputationswillnotbeconsidered

Section B

Chapter VI A

Section C

SECTION Dependents Eligible for Tax Benefit

1 Medical Insurance

80D

Individual, Spouse, Children & Parents

2 Medical Treatment for Handicapped Dependent

80DD

Individual, Spouse, Children, Parents, Dependant Brothers & Sisters

3 Medical Treatment for Specified Disease

80DDB

Individual, Spouse, Children, Parents, Dependant Brothers & Sisters

4 Interest on Education Loan

80E

Individual, Spouse & Children

5 Donations to Certain Funds, Charitable Institution etc.,

80G

Individual

6 Deduction in respect of Rents Paid

80GG

Individual

7 Permanent Physical Disability including Blindness

80U

Individual

Section 80C/80CCE/80CCF

SECTION Dependents Eligible for Tax Benefit

8 Pension Policy - 80CCC

80CCC

Individual, Spouse & Children

9 Long-Term Infrastructure Bonds

80CCF

Individual

10 Provident Fund - PF

80C

Individual

11 Voluntary Provident Fund - VPF

80C

Individual

12 Life Insurance - LIC

80C

Individual, Spouse & Children

13 Public Provident Fund - PPF

80C

Individual

14 National Savings Certificate - NSC

80C

Individual

15 Infrastructure Bonds - IBOND

80C

Individual

16 Tution Fees - TF

80C

Individual

17 Mutual Fund - MF

80C

Individual

18 Equity Linked Savings Scheme - ELSS

80C

Individual

19 Unit Linked Insurance Plan - ULIP

80C

Individual, Spouse & Children

20 5-Yr bank fixed deposits (FDs)

80C

Individual

21 Senior Citizen Savings Scheme 2004 (SCSS)

80C

Individual

22 5-Yr post office time deposit (POTD) scheme

80C

Individual

23 NABARD rural bonds

80C

Individual

24 Interest on NSC

80C

Individual

25 Stamp Duty & Registration Charges

80C

Individual

26 Home Loan Principal Repayment

80C

Individual

Section D

Housing Loan Details

SECTION Dependents Eligible for Tax Benefit

27 Self Occupied Property

24

Individual

28 Let Out Property

24

Individual