IndiaLends Advisory

By IndiaLends Advisory

Mar 15, 2019

A Guide To Income Tax Investment Proofs

The month of March is dreaded by many (Is your reason as valid as Julius Caesar?) Mostly, it is due to the money hassles. You have to declare your income and also wish to save tax in it in whatever way you can. Also, submission of investment proofs is one of the affairs that take place in this month. Here is a checklist of what documents you can submit as investment proof.

Why do employees need to submit investment proof?

Employees working at any company are required to submit investments’ proof in order to claim a deduction on income tax. Also, if you fail to submit these proofs within the stipulated deadline, you will have to bear the income tax as per the slab that your income falls under.

A Checklist For Income Tax Investment Proof:

Your employer will provide you with a deadline to submit Investment Proof sometime soon. Here is a quick checklist of the documents for the same-

1. Under 80C up to ₹1.5 Lakhs

The documents that one can submit 80C deductions are as follows. Please keep in mind that the investment amount should be a maximum of ₹1.5 Lakhs per annum-

⇒ Life Insurance Premium receipts –

You can submit receipts of life insurance premium that have been paid during 1st April to 31st March.

⇒ Public Provident Fund (PPF)–

Receipt of the deposit made in a public provident fund account can also be submitted. In case of online payment, you can get an e-receipt from the associated bank online and then submit them as proof. Your employer might also accept a copy of your passbook showing the details of the deposits made by you during that year.

⇒ 5 Years Senior Citizens Saving Schemes –

Receipts of the deposits made under this scheme can be submitted as investment proof.

⇒ National Saving Certificates –

5 years NSC from any post office or bank can be submitted and claimed for tax benefits.

⇒ Tax-Saving Mutual Funds or ELSS Funds –

Since you cannot submit the bank statement in this case, you have to log into your mutual fund account. Click on the transaction and then on “tax proof”. Here you can download a PDF copy and submit for income tax exemption. You can claim a tax deduction only through this particular document.

⇒ Pension Plans–

Premiums paid for pension plans can also be submitted to claim an income tax deduction.

⇒ Sukanya Samriddhi Account –

Deposits made towards the SSY for your girl child can be used to claim a tax deduction.

Related Article: Sukanya Samriddhi Yojana : Changes and Benefits

⇒ Bank Tax Saver FD –

Deposits made in a tax saving FD can be used as investment proof.

⇒ Post Office Term Deposit –

Post office deposits made for a period of 5 years can also be submitted as investment proofs.

⇒ Tuition fees –

Tuition fees paid for 2 children can be claimed under this section.

⇒  Home loan principal –

If you are paying a home loan, then the loan principal can be claimed here.

2. Under 80D Medical Insurance – Up to ₹50,000 (Senior Citizens ₹60,000)

If you are paying medical insurance or health insurance for you and/or your family, you can claim this as a deduction under section 80D. Remember that you can claim a maximum of ₹25,000 under this section.

3. Under 80CCD for NPS – Up to ₹50,000

Investment in the New Pension Scheme can also help you in claiming an amount of ₹ 50,000 under 80CCD. All you have to do is to get an e – receipt and also submit it as an income tax investment proof.

4. Under 80E – Interest on Educational Loan Repayment

If you have borrowed money like an educational loan for your studies, you can claim the interest amount as an exemption under section 80E. Also, the interest certificate can be acquired from the bank or financial institution.

5. Under 80G – Donations

If you have donated or are donating an amount for any social cause, then you can claim it as a deduction from income tax. A certificate from the organization can be obtained for the same in order to claim this.

6. Under 10(13A)- House Rent Allowance (HRA)

— If your rent is ₹3,000 or less, you do not need to submit any document
— And If you paying rent of less than ₹1 Lakh per annum then you have to provide rent receipts and affix revenue stamp and duly signed by the landlord.
— If your rent is more than ₹1 Lakh per annum, you will have to affix revenue stamp and get it signed by the landlord. You will also have to submit the PAN number of the landlord.

7. Under 24B- Loss from House property

You can also claim interest on your home loan by declaring it as a loss from house property. Also, a deduction up to ₹2 Lakhs per annum can be claimed by providing relevant documents indicating the home loan.

8. Under 80DD- Medical Expenses on handicapped dependent

Medical expenses pertaining to a handicapped dependent can be claimed under this section, only if you provide medical bills and fill Form 10-IA.

9. Under 80DDB- Medical Expenses for specific diseases

The following diseases fall under this section and the expenses can be submitted as investment proof:
— Neurological Diseases like Dementia, Dystonia Musculorum Deformans, Ataxia, Aphasia, Parkinson’s Disease, — — Hemiballismus, Chorea, and Motor Neuron Disease
— Malignant Cancer
— Chronic Renal failure
— Hematological disorders like Hemophilia or Thalassaemia
— Acquired Immuno-Deficiency Syndrome (AIDS)

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