Income Tax Investment Proofs Submission – Checklist and Guidelines
If you are salaried employee, you need to submit income tax proofs for 2018-2019 so that you can get income tax benefits. Salaried employees would declare income tax deductions at the beginning of the financial year, however, need to submit tax proofs during January or February based on the deadlines given by their employers. This article would provide details about income tax proof submission guides for 2018-2019. It would also provide some tips on how you can submit these documents with less than 1 day if you had some last minute rush.
When Employee would submit an invoice tax declaration?
Employees would submit an income tax declaration for allowances and deductions at the beginning of the financial year i.e. in April.
Why employee need to submit income tax proofs?
As part of your CTC breakup employee would provide certain allowances / deductions to be exempted based on actual. Employees would declare the same at the beginning of the financial year. However, employees need to submit actual investment proofs by January/February every year as employers need to keep them for an income tax audit purpose. The investments done for the year would be valid only for that year, i.e. any investments that are dated from 1-Apr to 31-Mar is valid only for that financial year.
What happens if an employee does not submit income tax investment proofs?
If employee declares them at the beginning of the financial year and do not submit them, they need to pay income tax in the last 2-3 months of the financial year. This would be a burden to the employee. An employee should not submit them in the declaration and if submitted, they need to submit investment proofs to claim the income tax benefits for the financial year.
Quick check list of Income Tax Investment Proofs to be submitted
Investment proofs submission should be done in January/February based on deadlines provided by the employer. This might change from employer to employer. Here is the quick checklist of documents to be submitted along with respective income tax section.
I) Investment Proofs to claim u/s 80C upto Rs 1.5 Lakhs
II) Health Insurance premiums can be claimed u/s 80D – Maximum of Rs 50,000 (sr. Citizens Rs 60,000)
III) Investment Proofs to claim u/s 80CCD for NPS – Maximum of Rs 50,000
IV) Interest on repayment of educational loan to claim u/s 80E – No limit
V) Donations made to claim u/s 80G
VI) HRA claim u/s 10 (13a) – Limit is as per guidelines
VII) Interest on home loan u/s 24B – up to Rs 2 Lakhs
VIII) Medical Expenses on handicapped dependent to claim u/s 80DD
XI) Medical Expenses for specific diseases u/s 80DDB
X) Investment Proofs to claim u/s 10(5) – Leave Travel Allowance (LTA) – Limit is as per grade in the company
Income Tax Investment Proofs Submission – Checklist and Guidelines for 2019
I) Income Tax Investment Proofs Submission to be done u/s 80C upto Rs 1.5 Lakhs
Here is the list of documents that can be submitted for 80c deductions. The investment amount should be maximum of Rs 1.5 Lakhs per annum.
1) Life Insurance Premium receipts – It is immaterial for which period it pertains to. You can submit life insurance premium receipts that are paid during 1st April to 31st March.
2) Public Provident Fund – You can submit e-receipt of deposit made in public provident fund. If you have done online payment, you can get e-receipt from your bank online and submit them as tax proofs. Some employers would also accept passbook copy which shows details of deposits made during that year. You can deposit within 5 minutes through any online method and get receipt and claim income tax proofs immediately
3) 5 Years Sr. Citizens Saving Schemes – If you have deposited them in 5 years Sr. Citizens saving schemes, you can show this deposit as tax proofs. This generally does not apply to submit to employer as employee would have retired by then. However, in some cases, employees when continued can claim by submitting the FD receipts.
4) National Saving Certificates – If you have taken 5 year NSC from any post office or from bank, you can submit and claim for tax proofs. You can go to any post office or bank and invest in NSC in less than 1 hour to claim the tax deduction.
5) Tax Saving Mutual Funds or ELSS Funds – One of the best way to save income tax u/s and get high returns is investing in tax saving mutual fund schemes. You cannot submit statement here or tax proofs. You need to log into your mutual fund account and click on the transaction and click on “tax proof” where you can download the PDF copy and submit for income tax exemption. Only through this specific document you can claim a tax deduction. In exceptional cases, some employers are accepting a screen shot of transaction, but not all employers. You can invest and get the tax proof within 24 hours.
6) Pension Plans / ULIPs – Premiums paid for pension plans / ULIPs can be submitted here to claim income tax deduction.
7) Sukanya Samriddhi Account – Deposits made for your girl child can be submitted for tax proofs to claim the deduction. You can invest and get the tax proof within same day.
8) 5 Year Bank Tax Saver FD – Deposits made here can be submitted for tax proofs.
9) 5 Year Post Office Term Deposit – Post office deposits made for 5 years can be submitted for tax proofs.
10) Children Tuition fees – Any tuition fees paid for 2 children can be claimed here. You cannot submit any other fees other than tuition fees.
11) Housing loan principal – You might be paying housing loan principal as part of your EMI. Such amount can be claimed here.
II) Income Tax Investment Proofs Submission to be done u/s 80D Medical Insurance – Maximum of Rs 50,000 (sr. Citizens Rs 60,000)
If you have paid medical insurance / health insurance for you or your family or for your parents, you can claim them u/s 80D
1) Medical Insurance 80D for self and family – Here you can claim for you, your spouse and for your family u/s 80D. You can claim the amount upto maximum of Rs 25,000 per annum. If you / your spouse is a senior citizen, the amount is increased to Rs 30,000 per annum.
2) Preventive Healthcare check-ups 80D – You can claim the deduction on preventive healthcare check-ups up to Rs 5,000 per annum. However, this is part of the Rs 25,000 limit indicated in the above point.
3) Medical Insurance 80D for Parents – Here you can claim the amount upto maximum of Rs 25,000 per annum for the premiums paid for your parents. If your parents are senior citizens, the amount is increased to Rs 30,000 per annum. You can also claim preventive health check-up amount of Rs 5,000 for your parents too.
To summarize, you can claim a maximum of Rs 25,000 (Incl Preventive health check-up Rs 5,000) for you and your family and Rs 25,000 (Incl Preventive Health check-up Rs 5,000) for your parents = Rs 50,000 / Rs 60,000 (in case of Sr. Citizens)
III) Income Tax Investment Proofs Submission to be done u/s 80CCD for NPS – Maximum of Rs 50,000
You can claim an amount of Rs 50,000 by investing in NPS u/s 80CCD. If you have deposited this amount in New Pension Scheme, you can get an e – receipt and submit as income tax investment proof. You can invest and get online receipt to claim tax deduction.
IV) Income Tax Investment Proofs Submission to be done u/s 80E – Interest on Educational Loan Repayment
If you have taken educational loan, you can claim interest as exemption u/s 80E. You can get the interest certificate from the bank or financial institution and claim this. This certificate should have a PAN number and Sanction date.
V) Income Tax Investment Proofs Submission to be done u/s 80G – Donations
If you have donated any amount for any cause, you can claim it as a deduction. You can get the certificate from the company where you made the donation to claim this.
VI) Income Tax Investment Proofs Submission to be done u/s 10 (13a) House Rent Allowance (HRA)
1) If you are paying rent of Rs 3,000 or less you don’t need to submit any tax proofs
2) If you are paying rent of Rs 1 Lakh per annum, you have to provide rent receipt and affix revenue stamp and signed by the landlord. You can provide 12 months rent receipts or consolidated rent receipts for the entire year.
3) If you are paying rent of more than Rs 1 Lakh per annum, you need to affix revenue stamp, signed by the landlord along with a PAN number of landlord. Some employers even ask for a rental agreement. You need to provide the same while submitting rent receipts (monthly or consolidated one).
VII) Income Tax Investment Proofs Submission to be done u/s 24B Loss from House property
Many of us have own house and we would have brought them by taking housing loan. We can claim interest on housing loan by declaring it as a loss from house property upto Rs 2 Lakhs per annum for self-occupied property. You can get the housing loan interest certificate from the bank or housing finance company. However, ensure it has PAN number and sanction date.
VIII) Income Tax Investment Proofs Submission to be done u/s 80DD Medical Expenses on handicapped dependent
Medical expenses pertaining to handicapped dependent can be claimed here, along with medical bills and filling Form 10-IA.
XI) Income Tax Investment Proofs Submission to be done u/s 80DDB Medical Expenses for specific diseases
Medical expenses for specific diseases can be claimed here.
X) Income Tax Investment Proofs Submission to be done – Leave Travel Allowance (LTA) – Section 10(5)
The travel ticket expenses against Leave Travel Allowance (LTA) can only be claimed via your employer. LTA is allowed to be claimed 2 times in a block of four years. The current block is 2014 to 2018. You are allowed to carry forward your unclaimed LTA to the next year, so you can request your employer to not deduct tax on it and allow you to claim it next year. Since 4 year block has ended in Dec 2018, if there is any claim you can do it now, else it would be added to your allowances and you need to pay income tax on that.
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Income Tax Investment Proofs Submission – Checklist and Guidelines for 2019