It’s time to submit your tax saving investments proofs in support of the declarations made for the current financial year 2018-19.
Please read carefully the below given guidelines before submitting your investment proofs:
1. General Rules and Guidelines:-
1. if you fail to submit the proofs before the last date then tax benefits allowed on the basis of declarations will be disallowed which means your tax burden will go up in remaining months of the year.
2. Please enclose all your Investment Proofs along with the attached covering sheet containing detail of all your investment proofs. Please note that no benefit shall be given in the absence of covering sheet.
3. Where premium or payment is made for any other person, then you also need to submit a declaration stating that the amount is paid by you and nobody else is claiming the benefit of the same. In this case, you also need to state the relationship with such person to get the correct benefit.
4. Maximum amount which can be claimed as deduction u/s 80C, 80CCC (Premium paid for Pension Plan) is Rs.1,50,000/-.
2. Broad Guidelines and Documents required for availing tax benefit under various sections of income tax act.
Mentioned below are some broad guidelines related to submission of investment proofs.Please read them carefully before submitting your investment proofs:
1. Please read the attached “Guidance on Investment proofs” carefully
2. In case where any premium is due after 10-Jan-19, then please prepay them and provide us the receipt of the same. If this is not possible then you need to submit the actual proofs in the next cycle in February 19.please note if you don’t submit the actual proof sin next cycle-Benefit of the same will be removed in March Salary.
3. HRA Rent Receipts:–
Please provide one receipt per quarter (April to June, July to September, October to December and January to March) along with a letter specifying that the rent amount for that period will remain the same. Rent receipts must state name of tenant, name of landlord, address of the property, amount of rent,concerned month and receiver’s signature on the revenue stamp.
If the monthly rent paid by you is more than Rs.8333/-p.m. it is mandatory for you to report the PAN of the landlord to the employer.
4. Repayment of Housing Loan: – You will have to submit the following documents to claim the benefit of interest on Housing Loan:-
Certificate from the lender stating the breakup of principle and interest amount separately.
Proof of ownership and possession of the house which may be in form of electricity bill, water bill, House tax Bill or any other bills from the concern authority showing your ownership (telephone bill is not applicable).
Statement showing calculation of loss from house property (Form 12 C) attached herewith.
Please note that if the loan is in joint name, then the ownership of the house property should also be in the name of the employee – which can be partly or fully. In this case you also need to give us a declaration from the joint owner stating that he shall not be claiming any tax benefit from the house or shall be claiming ½ share, as the case may be.
Further, please note that the Interest on housing loan paid for self-occupied property will be considered as deduction from taxable income subject to below mentioned limits.
Where the loan is taken on or after April 1, 1999 – 2,00,000
Where loan is taken earlier- 30,000
Benefit of interest on loan taken to construct/ purchase of house can only be given in case the possession/ construction of the house property is fully completed.
The employee who is also claiming the benefit of HRA rebate for a rented property in the same city, would not be allowed to get both the benefits together. However, if he has to live in a rented property nearby to his office due to the fact that his owned house property is located at a place other than the place where he is supposed to perform his official duty, then he can claim both the benefits together.
Any interest paid during the pre-construction or pre-acquisition period, will be allowed as a deduction in five equal installments after completion/ acquisition of the house and first such installment would be deductible in the year in which construction of the house is completed or possession of house is taken.
5. Salary from Previous Employer: –
i. Employee who has joined the company during the F.Y. 2018-19 i.e.after 1st April 2018 also needs to submit the details of salary received from his previous employer in the attached form (Form 12B) so that tax can be deducted accordingly.
ii. In case of first employment employee needs to give a declaration for his first employment and will show NIL salary in the attached form (Form 12B).
Pleaseinput your name and Employee Number in the subject header of the email.