hp guidelines for proof submission_2013-14
DESCRIPTION
knkTRANSCRIPT
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
Page 4 of 25
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
Page 5 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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
Page 6 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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.
Page 7 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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
Page 10 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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
Page 11 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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.
Page 12 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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.
Page 13 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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)
Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-
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
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.
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
Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-
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
Page 14 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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)
Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-
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
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.
Page 15 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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.
Page 16 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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
Page 17 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
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
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.
Provisional certificate pertaining to current financial year (Apr ’13 – Mar ’14) with breakup of interest and principle from the Housing Finance Company / Bank.
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.
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
Bank statement showing only EMI deduction will be disallowed
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
Page 21 of 25
Proof Submission Guidelines for the financial year 2013-14SECTION COMPONENT PROOF TO BE SUBMITTED TAX BENEFIT FOLLOWING WILL BE DISALLOWED
24
No cap on maximum amount
Loss / Income on Let out 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.
Bank statement showing only EMI deduction will be disallowed
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
Page 22 of 25
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
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
Page 25 of 25
Proof Submission Guidelines for the financial year 2013-14