DocumentsRequirementGuidelines_2022-23 (1).ppt

Income Tax Proof Documents Submission Guidelines
(2022-2023)

Important Points to Note
+ The PAN of the landlord which is submitted by the employee is being reported to the Income Tax
Department by the employer. This gets captured in the Annual Information Summary (AIS) of the
landlord. Then the Landlord needs to report the Income thus received as rent in their Return of
Income for the Year. Hence additional caution is to be taken while reporting Landlord PAN for rent
paid by the Employees.
+ The PAN of the Loan lender in respect of Housing loan is being reported to the Income Tax
Department by the employer. This is getting further verified by the Income Tax Department at the
Loan lender. Hence additional caution is to be taken while reporting Lender PAN while claiming
Housing Loan exemption by the Employees.
• HRA Can be claimed only at IBM for the period of the Employee’s Tenure at IBM and cannot be
claimed at the New Company
• For any investments made in the names of the spouse or child of the employee, the employee
must provide a duly filled Self Declaration soft copy declaring that the investments are being
claimed by employee only and not by spouse/Child of employee.
• You can submit one Self Declaration duly filled soft copy form for all tax components instead of
multiple ones by mentioning all the Income Tax components in one Self declaration form.
• If investment under National Pension Scheme (NPS) is deducted from FBP thru payroll you need
not submit any proofs or declare in the IT proof tool. The same would be considered for exemption
directly by payroll.
2

Contents Slide Number
Income tax slabs – Financial Year – 2022-2023 3
Understanding of Tax Deductions available under Section 80C & 80CCC 4
Understanding of Tax Deductions available under Section 80CCD & 80D 5
Understanding of Tax Deductions available under Section 80DD 6
Understanding of Tax Deductions available under Section 80DDB 7
Understanding of Tax Deductions available under Section 80E 8
Understanding of Tax Deductions available under Section 80EEB & 80EEA 9
Understanding of Tax Deductions available under Section 80G, 80TTA & 80U 10
Understanding of House Rent Allowance (HRA) Tax exemption 11
Understanding of declaration of Previous Employment Income 12
Understanding of Deductions from House Property Income – Section 24 13 to 16
Income Tax Documents Requirements Guidelines (2022-23) 17 to 25
3

Education Cess : 4% on Tax & Surcharge.
Note: As per Section 87A, if your annual taxable income is INR 5,00,000 or lower, a maximum rebate of taxes upto
INR 12,500 is allowed. This means, if your total tax payable is less than Rs 12,500, then you will not have to pay any tax
Surcharge Slab rates
Income Tax Slabs – Financial Year 2022-23
4

Understanding of Tax Deductions Available under Section 80C & 80CCC
Section Permissible limit (maximum) Points to Note
80 C Deductions on Investments
Rs 1.5 lakh (aggregate of 80C, 80CCC
80CCC and 80CCD)
The following are the investments that qualify for deductions under Section
Section 80C of the Income Tax Act:
• Public Provident Fund,
• Employee Provident Fund,
• Voluntary Provident Fund,
• Five-Year Post Office Time Deposit,
• Equity Linked Savings Scheme,
• Five-Year Tax Saving Bank Fixed Deposit,
• National Savings Certificate,
• Unit Linked Insurance Plan,
• Sukanya Samriddhi Scheme,
• Infrastructure Bonds, NABARD Rural Bonds, etc
The following are the expenses that qualify for tax deductions under Section
Section 80C of the Income Tax Act:
• Premium payments made towards life insurance policies,
• Tuition fees for children’s education,
• Repayment of principal amount on home loan,
• Registration fees and stamp duty for house property.
80 CCC Deduction for Premium Paid for Annuity
Plan of LIC or Other Insurer
Rs 1.5 lakh (aggregate of 80C, 80CCC
80CCC and 80CCD)
Eligibility for Claiming Deductions u/s 80CCC
Any individual taxpayer who has invested in an annuity plan offered by an
an insurer can claim the deductions under this section.
• The tax deductions under Section 80CCC are clubbed together with that of
that of Section 80C and sub section (1) of Section 80CCD for an overall
overall deduction limit of Rs.1.5 lakhs per year.
• The individual limit of deductions that can be claimed u/s 80CCC is Rs.1.5
Rs.1.5 lakh per year.
• Section 80CCC deals explicitly in annuity or pension plans offered by
various public and private sector insurers in the country.
• Deductions are applicable on amounts paid for the preceding year only. If
only. If contributions to a pension fund are made for two or more years
years together, then only the preceding year’s contributions can be claimed
claimed as deductions and not the years before that.
5

80 CCD (1) / (1B)
(1B)
Deduction for Contribution to Pension Account –
Employee Contribution
Rs 1.5 lakh (aggregate of 80C, 80CCC and 80CCD)
Section 80CCD has two parts which when combined provide tax deductions
deductions to employees and employers who have made contributions to the
to the National Pension Scheme (NPS). There are certain terms and conditions
conditions for claiming eligibility and deductions.
• Deductions are applicable on contributions made to the National Pension
Pension Scheme (NPS) by employee and by employers.
• 10% of Basic salary can be claimed as maximum deduction subject to an
to an upper ceiling of Rs.1.5 lakhs.
• The additional deduction of up to Rs.50,000 is available for contributions
contributions by individuals towards NPS under sub-section 1B, taking the
taking the total deductions to Rs.2 lakhs per year.
• Any deductions claimed u/s 80CCD cannot be claimed again u/s 80C.
80C.
• Total deduction limit – Section 80C + Section 80CCD(1) + 80CCD(1B) =
= Rs.2 lakhs.
80 CCD (2) Deduction for Contribution to Pension Account –
Employer Contribution
The amount of deduction is limited to 10% of the
the Basic salary.
This section deals with the employer contribution toward an employee’s NPS
employee’s NPS funds i.e. NPS contribution as part of Flexible Benefit Plan.
Plan. Employees can claim this amount as deductions u/s Section 80CCD (2).
80CCD (2). The amount of deduction is limited to 10% of the employee’s Basic
employee’s Basic salary.
Note: There is not need to submit any documents as the details will be
captured directly based on monthly contribution.
80 D Deduction for the premium paid for Medical
Insurance.
For Self and Family:
• Max deduction of Rs.25,000
• Max deduction of Rs.50,000 if you are a senior
senior citizen.
For Parents:
• Max deduction of Rs.25,000 on health insurance
insurance premium paid on behalf of parents.
• Max deduction of Rs.50,000 on premium
payments for senior citizen parents.
Section 80D of the Income Tax Act provides tax deductions on premiums
premiums made for medical insurance for yourself and on behalf of your
your family. The Section 80D offers deductions over and above the
exemptions derived from the more popular Section 80C.
Additional Deduction:
A deduction of Rs.5,000 can be claimed every year on expenditure related to
related to health check-ups. This limit includes the check-up expenses of all
of all members in a family, including spouse, kids and parents.
Understanding of Tax Deductions Available under Section 80CCD & 80D
6

80 DD Deduction for Rehabilitation of
Handicapped Dependent Relative.
• Rs 75,000 for general disability
• Rs 1.25 lakh for severe disability
The following are the expenses that are exempted for income tax under
section 80DD:
• Any expenses incurred for medical treatment which includes nursing,
training as well as rehabilitation of dependent that is disabled.
• The amount paid towards Life Insurance Corporation (LIC), Unit Trust of
of India or any of the other insurers for the sole purpose of buying specified
specified schemes or insurance policies to help in the maintenance of a
a dependent with disabilities.
In order to claim the deduction an individual must have to submit medical
medical certificates, medicine bills, and all other supportive documents.
Note: Individuals, or a spouse, son or daughter (or any child), parents as well
as well as brother or sister i.e. any siblings can be considered as your disabled
disabled dependent.
What kind of Disability or Severe Disability is considered under the Section
Section 80DD?
Disability for Section DD is defined under clause (i) of section 2 by the
“Persons with Disabilities (Equal Opportunities, Protection of Rights and Full
Full Participation) Act, 1995” as well as disabilities includes in clauses (a), (c)
(c) and (h) of section 2 of National Trust for welfare of Person with Autism,
Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999.
1999.
Hence this includes the following disabilities:
Cognitive or severe mental disabilities, Low vision, Blindness, Leprosy-
Leprosy-cured, Hearing impairment, Locomotor disability, Mental illness,
illness, Autism, Cerebral palsy, Or Multiple disabilities
It is essential to note that person must not suffer less than 40% of any of the
of the above disabilities. When it comes to sever disability 80% or above of
of one or more of the mentioned illnesses or disabilities is considered.
Understanding of Tax Deductions Available under Section 80DD
7

80 DDB Deduction for Medical Expenditure on
Self or Dependent Relative
• Rs 1 lakh for senior citizens
• Rs 40,000 for others
Section 80DDB provides tax deductions for medical expenses of a specific
specific ailment the expenditure relating to medical treatment must be either
either for the individual or a family member such as a spouse, parent or sibling
sibling that is dependent on them. Under Section 80DDB, tax deductions can
deductions can be claimed under Chapter V1-A with regards to the payment
payment of expenses relating to the medical treatment of any person suffering
suffering from a specific ailment. There is a detailed list of diseases for which
which the tax deduction can be claimed.
Extent of Deduction that can be claimed under Section 80DDB
• The actual amount paid for medical treatment or Rs 40,000, whichever is
whichever is lower
• Senior citizens aged between 60 years to 80 years can claim deduction
deduction either for the actual amount paid for the medical treatment, or
treatment, or Rs.1 lakh, whichever is lower.
• Senior citizens aged above 80 years can claim deduction either for the
the actual amount paid for the medical treatment, or Rs.1 lakh, whichever is
whichever is lower.
Section 80DDB specifies the following medical ailments and diseases for which
which tax deductions can be availed:
• Diseases that are neurological in nature such as:
Ataxia, Dementia, Aphasia, Dystonia Musculorum Deformans,
Hemiballismus, Parkinson’s Disease, Chorea, Motor Neuron Disease
• Chronic Renal Failure
• Malignant Cancers
• Hematological Disorders such as Thalassaemia, Hemophilia
• Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
Understanding of Tax Deductions Available under Section 80DDB
8

80 E Deduction for Interest on Education
Loan for Higher Studies:
Section 80E does not have an upper
limit which can be claimed for tax
deduction, provided that deductions
are claimed only for 8 years.
Section 80E of the Income Tax Act provides provisions for tax deduction on educational
educational loans. Such loans can be availed for higher studies of the spouse or children of
children of a taxpayer, with the deduction available only on the interest component of said
of said loan. This essentially means that any interest paid by an individual towards clearing
clearing an educational loans qualifies for deduction under Section 80E.
Tax deduction towards payment of interest can be claimed only after an individual has
has started repaying the loan and can be claimed only in the particular years when interest
interest is being paid on the educational loan.
Section 80E provides for tax deduction only on the interest component of an education
education loan for higher studies. The principal amount cannot be claimed for deduction
deduction under this section. Deductions can be claimed from the start of first repayment
repayment till 7 more repayments are made, that is, a total of 8 deductions are available
available with respect to the interest component. Higher education, under Section 80E
80E refers to education after completing the Senior Secondary Examination or its
equivalent.
Understanding of Tax Deductions Available under Section 80E & 80EE
9

10
80EEB Deduction in respect of interest
paid on loan taken for the purchase
of electric vehicle:
A deduction for interest payments
payments up to Rs 1,50,000 is
available under Section 80EEB
Section 80EEB deduction for interest on Loan for Purchase of Electric Vehicle- Section
Section 80EEB as introduced by Finance Act, 2019
Eligibility : An Individual who has taken a Loan for purchase of an Electrical Vehicle from
from any Financial Institution.
Qualifying amount : Interest payable on such loan would qualify for deduction under this
under this section subject to a maximum of Rs.150000/-.
Conditions to be fulfilled for Section 80EEB:
• The loan must be taken from a financial institution or a non-banking financial company
company for buying an electric vehicle.
• The loan must be sanctioned anytime during the period starting from 1 April 2019 till 31
2019 till 31 March 2023.
• “Electric vehicle” has been defined to mean a vehicle which is powered exclusively by an
by an electric motor whose traction energy is supplied exclusively by traction battery
battery installed in the vehicle and has such electric regenerative braking system, which
which during braking provides for the conversion of vehicle kinetic energy into electrical
electrical energy
Do note that an individual taxpayer should obtain the interest paid certificate and keep the
keep the necessary documents such as tax invoice and loan documents handy.
80 EEA Deduction for interest paid on
home loan for affordable housing
Amount of deduction
A deduction for interest payments
payments up to Rs 1,50,000 is
available under Section 80EEA. This
This deduction is over and above
the deduction of Rs 2 lakh for
interest payments available under
under Section 24 of the Income Tax
Tax Act.
Section 80EEA Deduction in respect of Interest paid on Loan Taken for Acquisition of
of Residential House Property (Affordable Housing) {Sec. 80EEA as introduced by Finance
Finance Act, 2019.}
Under the objective “Housing for all”, the government has now extended the interest
interest deduction allowed for low-cost housing loans taken during the period between 1
between 1 April 2019 and 31 March 2023. The existing provisions of Section 80EE allow a
allow a deduction up to Rs 50,000 for interest paid by first-time home buyers for loan
loan sanctioned from a financial institution between 1 April 2019 and 31 March 2023
2023
Conditions:
Similar to Section 80EE, in order to claim deduction under Section 80EEA, you should not
should not own any other house property on the date of the sanction of a loan.
Housing loan must be taken from a financial institution or a housing finance company for
company for buying a residential house property. Stamp duty value of the house property
property should be Rs 45 lakhs or less. The individual taxpayer should not be eligible to
eligible to claim deduction under the existing Section 80EE.
The taxpayer should be a first-time home buyer. The taxpayer should not own any
residential house property as on the date of sanction of the loan.
Understanding of Tax Deductions Available under Section 80EEB

80 G Deduction for donations towards Social
Causes
Different limits based on donation
Employees are required to claim the tax deduction while filing the return of Income
Income
80 TTA Interest Income from Savings account
Maximum up to 10,000 per year
Interest Income from Savings account
80 U Self-suffering from disability :
• Rs 75,000 for people with disabilities
• Rs 1.25 lakh for people with severe
disabilities
There are different criteria for this and a specific set of procedures for claiming this deduction
deduction under Section 80U.
The Section 80U deals with tax deductions who are categorized as disabled according to
government rules. Under the Income Tax Act, 1961, any individual who suffers from at least 40%
40% disability as specified by the law are eligible for deductions.
Definition of Disability
Disability is defined as at least 40% disability in a person as certified by relevant medical authorities.
authorities. Persons with disability are defined according to the Persons with Disability (Equal
(Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 passed by the
government. Disability is primarily divided into 7 categories:
• Low Vision: Low vision applies to people with visual function impairment that can’t be corrected
corrected by a surgery but who are still capable of using their vision through assists from other
other devices.
• Blindness: Blindness is defined as complete absence of sight or field of vision limitation by an
by an angle of 20 degrees or worse, or visual acuity less than 6160 after corrective lenses.
lenses.
• Hearing Impairment: Hearing power loss of at least 60 decibels.
• Leprosy Cured: People cured of leprosy but who have lost sensation in feet or hands and paresis
paresis in eyelid and eye. Also senior people or people with extreme deformities that obstruct
obstruct them from performing any beneficial occupation.
• Mental Retardation: People who have incomplete or arrested development of mental capacities
capacities resulting in subnormal intelligence levels.
• Loco Motor Disability: People with severely limited movements of limbs due to disability of joint
of joint muscles or bones.
• Mental Illness: Other mental disorders not relating to mental retardation.
The law also defines severe disability apart from disability. Severe disability refers to the condition
condition where a person suffers from 80% or more disabilities in the aforementioned categories.
categories. Severe disability has also come to include multiple disabilities, cerebral palsy and
and autism.
Understanding of Tax Deductions available under Section 80G, 80TTA & 80U
11

Section Permissible Limit Points to Note
10(13A) Rule 2A House Rent Allowance(HRA) Exemption
The Income-tax section 10(13A) provides the HRA
HRA Exemption of tax. The deduction will be
lowest amongst:
• Actual HRA received as part of FBP.
• 50% of the Basic salary if employee lives in any
any of the Metro cities of India. The
Metropolitan cities of India include Delhi,
Mumbai, Calcutta and Chennai.
• In case the employee lives in any other city
then 40% of the salary can be HRA exempted.
exempted.
• The actual rent that is paid by the employee for
employee for the residence each month, minus
minus 10% of Basic salary.
HRA should be part of your FBP & paid in your payslip to claim
claim exemption. If you have failed to declared HRA then you
you can declare prospectively as part of FBP. [Please refer to
to Income declaration portal in Workday]. Retrospective
declaration of HRA as part of FBP is not allowed.
Copy of PAN (Permanent Account Number) of Landlord is
mandatory irrespective of the Rent amount to claim HRA
exemption.
Tax benefits for both Home Loan & rented residence
In case the home of the employee is rented to someone else,
else, and the employee is living in rented place then the
employee can claim the benefits of HRA tax exemption on both
both home loan and rent paid. In this case, the employee will
will have to declare rental income gained through property (for
(for which home loan is taken) and pay the appropriate tax for
for it.
Note: In case the rented and the owned property in the same
same city, the deduction on both are not available for HRA tax
tax exemptions. The employee will have to prove that his/her
his/her property is located far away from the job location, and
and cannot be used for the residential purposes, in order to
to avail the tax benefit as HRA exemption.
Understanding of House Rent Allowance (HRA) Tax exemption
12

Section Permissible limit Points to Note
Previous employment
employment details
17(2)
Employees can declare their previous
employment [salary earned within the same
financial year i.e. April to March] earning
and deduction details.
IBM can adjust any excess or shortfall of tax.
tax.
Employees who have joined the organization in the mid of the financial year can
year can declare the previous employment tax details. If you have already
declared your previous employment details as part of tax declaration, then may
may submit Form 12B along with other documents. Hence, please ensure that you
that you update correct income, exemption and Tax deducted (if any) details.
details.
Form 12B: Form 12B is a declaration of income by an employee and it contains
contains the tax deduction account number (TAN) of the employer, PAN of the
the employee, period of employment in the previous company, the total amount
amount of salary, and allowance and perquisites received from the previous
employer. It will also have details of the amount of taxes deducted by the
previous employer, details of investments made, or expenses incurred that were
were eligible for deductions and were declared to the previous employer, etc. Its a
etc. Its a simple declaration and your salary slips will help in filling this form.
form.
Alternative procedure. If you don't want to opt for the Form 12B route, there is an
there is an alternative. You can wait for the year end closure and based on the
the Form 16 issued by your previous and current employer, which you will get
get after June, you can take both the forms and compute the taxes by applying
applying the slab benefits to the total income. This may result in some tax
payable, which can be deposited as self-assessment tax, along with interest as
as applicable when you file your tax returns.
Remember your salary is always taxable irrespective of whether TDS is deducted
deducted or not.
If the employee chooses not to provide the Form 12B, then the current employers
employers obligation is limited to depositing taxes only on salary paid by him.
him.
Understanding of declaration of Previous Employment Income
13

24 Deduction of Interest on Home Loan
for the property –
Self Occupied Property - Rs.2 lakh
Loss on let out property – Rs.2 lakh
As per the Income Tax Act, 1961, a house property included building, flats, etc and any income
income generated from house property is taxable, and it falls under the tax liability of a taxpayer
taxpayer who owns it or who is the immediate owner of the property.
House property are of three types:
1. Self-occupied property - Gross Annual Value is Nil
2. Let out property - Rent received is your Gross Annual Value
3. Deemed to be let out property - a reasonable rent of a similar place is your Gross Annual
Annual Value
In the process of determining the income which has been earned by letting-out property, one
one can avail deductions which is applicable under section 24 of the Income Tax Act. These
These deductions are inclusive of standard deduction, municipal tax deductions, deduction for
deduction for the interest paid on home loan etc
Income from house property self-occupied and let-out
The property can be either self-occupied, let-out or an inherited property. For both the self-
self-occupied property and let-out house property, the income chargeable to tax under the head
the head ‘Income from House Property’ is to be calculated in a specific manner as per the
income tax rules.
Self-occupied house property is the one that the employee uses for one’s own residential
purpose which may also be occupied by his or her family members.
For income tax purposes, a vacant house is also considered a self-occupied house. However,
However, there can be exceptions. Sometimes, the employee is not able to occupy the property
property owing to employment concern and no other benefit is derived from it either.
If one has more than two houses, both of them can be considered as self-occupied while any
any house other than that is treated as let-out
Understanding of Deductions from House Property Income – Section 24
14

15
24 (a) & (b)
(b)
Calculation of income from self-occupied house property
When considering self-occupied property, note that the income chargeable to tax under ‘Income from
‘Income from house property’ is calculated as given below:
• The Gross Annual Value of such property as mentioned above (self-occupied) is considered as Nil. ,
as Nil. , from which Municipal taxes paid during the year are deducted to arrive at Net Annual
Annual Value (NAV) of the house property.
• From the above mentioned NAV, one is allowed two more deductions under Section 24 – A
Standard Deduction of 30% of NAV is allowed under Section 24 (a) while the deduction for interest
interest paid on borrowed capital ( home loan) is allowed under Section 24 (b).
• After allowing for Section 24 deductions, the resultant income is chargeable to tax.
However, as the Gross Annual Value of a self-occupied property is Nil, one will always arrive at either a
either a Nil figure or a negative figure i.e. loss( in case there is a home loan), which can be adjusted
adjusted against other heads of income.
How to calculate income from let-out house property
Any house property of the employee which is given on rent to a tenant even for a few months is to be
is to be considered as a let out house property and income tax from house property is calculated
calculated accordingly.
Here are the steps to calculate income from a let-out house property:
Step 1: Calculate the annual rental amount received
Step 2: Deduct Municipal Taxes paid during the year to arrive at Net Annual Value (NAV)
Step 3: From NAV deduct Standard Deduction @ 30 per cent of Net Annual Value and interest on
interest on housing loan, if any to get the final value of Income from Let-out House Property.
With these easy-to-do steps, it is possible to calculate your rent from both self-occupied house
house property as well as let-out house property.
Understanding of Deductions from House Property Income – Section 24 ….contd

24 Deductions under House Property
a. Standard Deduction is 30% of the Net Annual Value calculated above.
• This 30% deduction is allowed even when your actual expenditure on the property is higher or
or lower.
• For a self occupied house property, since the Annual Value is Nil, the standard deduction is also
also zero on such a property.
• Therefore, this deduction is irrespective of the actual expenditure you may have incurred on
on insurance, repairs, electricity, water supply etc.
b. Deduction of Interest on Home Loan for the property –Homeowners can claim a deduction of up to
Rs.2 lakh on their home loan interest, if the owner or his family reside in the house property. The same
The same treatment applies when the house is vacant. If you have rented out the property, the entire
entire interest on the home loan is allowed as a deduction.
Your deduction on interest is limited to Rs.30,000 if you fail to meet any of the conditions given below
given below for the Rs.2 lakh rebate.-
i. The home loan must be for purchase and construction of a property;
ii. The loan must be taken on or after 1 April 1999;
iii. The purchase or construction must be completed within 5 years from the end of the financial year
financial year in which the loan was taken
Pre-Construction Interest
When you have taken a loan for purchase or construction of a house property, you can claim a
deduction on pre-construction interest. However, this is not allowed in case of the loan for repairs or
repairs or reconstruction. The total amount of pre-construction interest and interest on housing loan
housing loan that can be claimed in a year should not exceed Rs 2 lakh in any case.
The deduction for this interest is allowed in 5 equal instalments starting from the year in which the
which the house is purchased, or the construction is completed. Example, if the construction of your
of your property completed in FY 2022-23, on 25 July 2022, you can claim 1/5th of interest paid up till
paid up till 31 March 2023 when you compute your taxable income for FY 2022-23.
16

24 Conditions for Claiming Interest on Home Loan
You need to meet all the below 3 conditions to claim this deduction
a. Loan has been taken after 1st April 1999 for purchase or construction
b. The acquisition or construction is completed within 5 years (3 Years till FY 2015-16) from
from the end of the financial year in which the loan was taken
c. There is interest certificate available for the interest payable on the loan
Note that your interest deduction may be limited to Rs 30,000 if any one of these conditions
conditions is met –
a. Loan is borrowed before 1st April 1999 for purchase, construction, repairs or
reconstruction of house property
b. Loan is borrowed on or after 1st April 1999 for purchase, construction, repairs or
reconstruction of house property.
Computation of Income Under House Property
Scenario : i). Housing loan repayment of Rs 5 lakh annually out of which Rs 2 lakh is the
the interest component. ii). Pre-construction interest of Rs.2 lakh. iii) Monthly rental income
income Rs 6000 monthly from a let out property and also pays municipal tax of Rs 3000 for
3000 for the house.
Calculation of Income from house property in both the scenarios i.e. self occupied property
property or the let out property.
House property Type Self Occupied Let Out
Gross Annual value (6000 x 12) Nil 72,000
Less: Municipal Taxes paid NA 3,000
Net Annual Value(NAV) Nil 69,000
Less: Standard Deduction(30% of NAV) NA 20,700
Less: Interest on Housing Loan 200,000 200,000
Less: Pre-construction interest (1/5th of 3 Lakhs) 60,000 60,000
Income from House Property (240,000) (211,700)
Overall loss restricted to (200,000) (200,000)
17

Sl. No Tax Exemption Component Mandatory documents to be submitted as per IBM policy Attachments
1 House Rent Allowance (HRA)
(HRA) Sec-10
• The First month (Apr-2022 or month of joining) & Latest rent (preferably)
(preferably) paid receipt in soft / scanned copy.
• A scanned copy of the valid rental agreement with the Landlord. If the
the rental agreement was due for renewal and if landlord is unavailable
unavailable for signature, then please mention the facts and provide a
provide a declaration as attached.
• Duly filled HRA Declaration in scanned form available in the
portal/attached declaration form.
• Copy of the PAN of the landlord. Name in the Rental Agreement should
should match the name in PAN Card.
• The receipt should have details like Name, Address of rented
accommodation, rent amount both in figures and words, rent paid for
for the month and signature (if possible) of the Landlord.
• If employee has shifted houses or has any change in rent amount, then
then one rent receipt from previous/current Landlord as applicable (the
(the rent receipt for last month before change) and copy of the old
agreement is also required. PAN card copy of both the Landlords are
are required to be provided.
Note:-
• The rental agreement should necessarily cover the period for which the
the exemption is being claimed for.
• Copy of PAN (Permanent Account Number)of Landlord is mandatory
mandatory irrespective of the Rent amount
• If in the agreement there is Rent and Maintenance mentioned; only RENT
RENT will be considered.
• If the agreement is not in the name of employee, Exemption will not be
not be given.
• For ONSITE employees, the rent receipts shall be considered only for their
for their period of stay in India.
• Exemption will be given only for the house rented in the place of work
work and not for houses in other locations.
Income Tax Documents Requirements Guidelines (2022-23)
18
Declaration -
House Rent Allowance.doc

2 Repayment of Housing
Loan(Principal) and Stamp duty
duty and Registration.
(Cont’d next page..)
1. Principal repayment –Sec 80C
Mandatory documents to be submitted:
Scanned copy of Original provisional certificate duly signed and sealed by the Financial institution
institution (HDFC / LIC Housing Finance..etc) by mentioning the break up of Principal and Interest
Interest repayment in the Financial Year 2022-23. In case of loan taken jointly, and the entire Principal
Principal and interest repayment is claimed by employee, a joint declaration(duly filled copy) to this
to this effect has to be submitted for claiming 100% Income Tax rebate.
Note: If the Home loan Certificate (For Interest and Principal on Housing Loan) specifically mentions
mentions that it is a computer generated certificate and does not require signatures then employees
employees can upload the soft copy of the same while submission online. If not ,then the Home loan
Home loan certificate would have to be signed and sealed by the issuing bank and upload the
scanned copy of same.
Stamp Duty and Registration proofs: Soft/scanned of proof for Stamp duty and registration (if
registration (if any) payment or documentary evidence of the expenditure (eg: Receipt, copy of
agreement/deed) is to be produced.
Exemption on the Pre EMI interest paid can be claimed after receiving the possession of the
the house in 5 equal installments over a period of 5 successive financial years by adding the same
same under Interest section of respective housing property type.
2. Interest on Housing Loan –Proofs required(Sec 24)
Self occupied House property –
a. Scanned copy certificate as mentioned under 'Principal repayment' section.
b. A duly filled declaration form (as embedded) should be submitted for both self & letout property.
property.
3. Income or Loss on House Property (Proofs required)
House Property is Rented – a. In addition to the above(Bank-Cert) duly filled up copy of Housing
Housing Income computation and a declaration form(as embedded) to be submitted.
b. Copy of Municipal tax/Property Tax receipt to be provided (applicable where the house is rented)
rented)
Note : Income Tax Exemption on Loss of Housing loan Property inclusive of Self Occupied is restricted
restricted to Rs. 2,00,000. Any loss beyond 2,00,000 needs to be carried forward during Filing of
of Returns for the year
19
House Property
Declaration

Repayment of Housing Loan
Loan
(cont’d)
Declaration
Form(HRA-HL)
Note : Employees cannot claim both Interest on housing loan for self occupied property
property and HRA exemption in the same city..
Employees claiming both HRA exemption and Home Loan Interest exemption for different
different cities, employees need to submit a duly filled soft copy declaration in original.
original.
In case of joint housing loan, a duly filled declaration in the attached format need to be
be uploaded while submission otherwise tax benefit will be given on prorated basis.
Note: 1.Employees having self occupied property and claiming Principal and Interest
Interest amount tax rebate then proofs to be submitted are Original bank certificate copy
copy and a duly filled soft copy joint loan declaration form only if the property is a Joint
Joint loan
2.Employees having Partly/Wholly let out property and claiming for Principal and Interest
Interest amount consideration for tax computation then they need to submit Housing
Housing income computation soft copy, Original bank certificate soft copy and Joint loan
loan declaration duly filled soft copy(only if the Home loan is a joint one).
3. Interest can be claimed only after property is taken on possession
3 Income From Other Sources
Sources
Duly filled and soft copy declaration should be submitted for Other income “Unspecified”.
“Unspecified”.
Note: Amount under “Other Income (Unspecified)” will be considered and will be considered
considered for Tax computation at the highest rate.
20
Declaration -
Income from Other Sources

21
4 Previous employment details
details
1. Soft copy of “Form 16” (For period in financial year 2022-23) or “Original Final Tax
Tax Computation Statement copy for the current financial year” (Attested) by the
authorized signatory on company letter head of the previous organization
2. Duly filled scanned copy of “Form 12B”.
Note: Please note that the employees declaring previous employment details are required to
required to provide proofs for investments made under Chapter VIA (80C and 80 others)and
others)and Home loan proofs submitted with previous employer will have to be submitted
submitted again in IBM to avail the tax rebate.
5 Section 80C - Life Insurance
Insurance Premium
Soft copies of all the Premium receipts PAID by the employee (in this Financial Year). Incase
Incase any premium is due in January / February/March 2023, then either you can pay the
pay the premium before the cutoff date and produce the proof, or the deduction can be
be availed at the time of filing your Income Tax return. This is as per the Income Tax
provisions.
Electronic soft copy premium receipts will be considered only if it clearly displays the
insurance company details (with Logo), details of the insured and policy details (policy
(policy number etc). Policy Schedule and Policy Status View will not be considered
considered
b) Duly filled soft copy declaration need to be given in the attached format in case of
premium payment made on behalf of dependents and claiming exemption
6 Sec 80C
Sukanya Samriddhi Scheme
Scheme
Scanned copy of the receipt along with copy of Passbook
Note: The proof must be in the name of employee and Dependent daughter
7 Section 80C - Children
Tuition Fee
Scanned copy of the receipt issued by the educational institution.
Note:
Deduction will be given only for tuition fees paid during the financial year and not on
development fees, donation & Capitation etc. Exemption can be claimed only for the tuition
tuition fees incurred for 2 children.
Deduction will be given only for expenditure incurred in India on Full Time Education.
Education.
Form 12B
Declaration - LIC

22
8 Pension Plan -Sec-80CCC • Jeevan Suraksha Or any other scheme u/s 80CCC - Soft copy of the
the receipt from the Insurance Company.
9 National Pension Scheme
80CCD 1 (B)
Statement from NSDL or from the Bank reflecting the investment for the
for the Financial Year.
If the same is subscribed under Atal Pension Yojana, then the statement
statement from the Bank showing the investment made for the Financial
Financial Year.
10 Section 80C -
National Saving Certificate
(NSC)
• Scanned copy of the NSC certificate with the details (Certificate
number, Purchase Date, Amount details) must be visible in the copy.
copy.
• b) Incase of NSC interest declared which was earned on previous NSC
NSC investment, then the same will also be considered as income
income under “Other Income (Unspecified)” head
11 Section 80C –
Post Office Savings Deposit-
(Recurring Deposit not eligible
eligible for exemption)
• Soft/scanned copy of deposit receipt
• Soft/scanned copy of the passbook - front page where details of the
the depositor are mentioned and page showing current financial year
year deposits and balance as on that date.
• If balance is not shown, then provide soft/scanned copies of all pages
pages where investment between April 2022 and March 2023 is
recorded.
12 Sec 80C - Bank FD (Notified tax
tax savings scheme)
Soft copy of certificate from Bank. Fixed deposit in notified tax saving
saving scheme for current Financial year will only be considered. Five
Five years tax saving fixed deposit will be considered and it should be
be invested during current Financial Year.

13 PPF-Sec 80C Soft copy of the stamped deposit receipt or Soft copy of Passbook duly
attested.
14 ULIP-Sec 80C Soft copies of all the Premium receipts paid (in this Financial Year 2022-23).
23).
15 Mutual Funds-Sec 80C Soft copy of the challan/receipt for Investments. Electronic statement will be
be considered only if it contains details of the Mutual Fund company, scheme,
scheme, folio number, employees name. Deduction is available only for ELSS
ELSS (Tax Saving) schemes of mutual funds.
16 Interest on Education Loan-Sec
80E
Interest for the Loan repayment details for the Financial year
a). Soft copy of Original Certificate (Duly signed & sealed) from the Lending
Lending institution for Repayment of Educational loan). Note : If the Education
Education loan Certificate (For Interest and Principal on Education Loan)
specifically mentions that it is a computer-generated certificate and does not
not require signatures then employees can upload the soft copy of the same
same while submission. If not ,then the Original Education loan certificate
would have to be signed and sealed by the issuing bank and upload scanned
scanned copy of same.
Only Interest is allowed for Income Tax Deduction purposes.
b) Signed soft copy self declaration form
Note: This is applicable for the Assessee (employee) Spouse and child. Higher
Higher education means - "Full Time studies for any graduate or post graduate
graduate course in Engineering (including technology / architecture), medicine,
medicine, management or for post graduate course in applied sciences or pure
pure sciences including mathematics and statistics."
17 Sec-80TTA - Interest received from
from Savings Bank account
Duly filled scanned declaration form needs to be submitted. Note: The same
same Interest amount would be considered as income also under “ Other
Income (Unspecified)” Head.
This would be Taxed at the Highest Tax rate applicable
23
Declaration - 80E
- Education Loan
Declaration_80TT
A

18 Section 80 D
Self declaration
Medical Insurance
a) Soft copy of the premium receipt paid by the employee, issued by the insurer.
insurer.
b) Self declaration soft copy form duly filled (To claim for investments made on
made on dependents) under Sec 80D as attached).
c) Proof for preventive health check ups requires Paid Receipt scanned copy in
copy in original is mandatory (Applicable for self + Parents proofs) and include
include the amounts under appropriate 80D line items.
19 Section 80 DD
Medical Insurance
Deduction regarding maintenance including medical treatment of dependent
dependent who is person with disability. The permanent physical disability or
or mental retardation of the dependent relative has to be certified by a physician,
physician, surgeon, oculist or practitioners working in a govt. hospital in the
the attached Form-10IA. Duly filled and signed soft copy of original Form-10IA to
10IA to be uploaded while submission.
Duly filled soft copy Self declaration (Same as above for 80D)by employees duly
duly certifying amount spent on treatment, training or rehabilitation of the
handicapped dependent or the amount paid to LIC/UTI for the policy).
If the disability is upto 80% then the deduction is 75,000 and if the disability is
disability is beyond 80% then the deduction is Rs. 1,25,000.
20 Sec-80DDB (Medical Treatment) Any assesse or dependents suffering from specified diseases and ailments (Viz:
24
Declaration - 80D
- 80DD & 80DDB
Declaration - 80D
- 80DD & 80DDB
Declaration - 80D
- 80DD & 80DDB
Form 10IA

21 Section 80 U Any assessee suffering from a permanent physical disability (including
(including blindness) on the production of soft copy of medical
certificate from Government Hospital in the prescribed form i.e Form 10
Form 10 IA (Soft copy duly filled and signed) , shall be allowed a
deduction of Rs.75,000. Where such assessee is a person with severe
severe disability, a deduction of Rs.1,25,000 can be claimed.
22 Section 80EEA • Interest paid Certificate from the Financial Institution
• 80EEA declaration (As attached)
23 Section 80EEB • Interest paid Certificate from the Financial Institution
Note: Keep the necessary documents such as tax invoice and loan
documents handy
25
Form 10IA
Declaration_Hom
e Loan(Section 80EEA)
Declaration80EEB

Common Mistakes
• Not Uploading HRA declaration which is mandatory to claim HRA
• Not Uploading PAN of landlord which is mandatory
• Not Uploading Income or Loss on House property Document while claiming Interest on Housing loan
• Single File size exceeding 4 MB
• Missing 6 calendar day dead line for resubmission
• Saving the claim and not submitting
• Attaching Password Protected files
• Claiming Non Tuition Fees receipt
• Claiming Life Insurance for Parents
• No Logo in the Bank Certificate (Interest on Housing loan, PPF, Sukanya Samridhi Scheme etc)
• Form 10 IA/Disability Certificate not signed by Government Doctor
• When the claim is for dependents, dependent declaration is mandatory
26

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