Guidelines to Investment Proof Submissions

One of the most important parts of processing payroll for any company is submitting investment proof. Employers frequently ask for investment statements from their employees twice a year in India. Upon joining the company and at the beginning of the year, in February or March, each employee must file an investment declaration using the official form. In this article, we have summarized the instructions for submitting the investment proof without any hassles.

#1:- House Rent Allowance (HRA): Exemption Criteria and Supporting Documents Required

• Actual HRA received for the year
• Rent paid: 10% of Basic
• 40% of Basic or 50% of Basic

It is necessary to provide a rental agreement together with copies of rent receipts (monthly or quarterly) for every month beginning in April 2023—or from the month you rented your residence, whichever comes later—through March 2024, the last month of renting the property. Note: If the monthly rent exceeds Rs. 8333/- (i.e., Rs. 1,00,000/- per annum), the owner’s PAN is necessary.

The name and address of the landlord, the address of the rented property, the month and amount of rent paid, and the appropriate signatures should all be prominently displayed on rent receipts.

Proof of rent payment can be proved by the rental agreement or rental receipts.

#2:- Leave Travel Allowance (LTA): Exemption Criteria and Supporting Documents Required

• A maximum of two trips may be made under an LTA exemption within a block of four calendar years.
• The current block runs through December 31, 2025, having begun on January 1, 2022.
• An LTA exemption may be used for a single trip within a single calendar year.
• Your company shouldn’t observe a holiday on the day of the trip.
• You can carry over one voyage to the next block if you are unable to claim the LTA exemption twice in a single block. The carried-over LTA eligibility must be used in the first year of the subsequent block (which is applicable this year).

Travel agencies offer tickets, boarding passes, and bills. Approval transaction/approval mail for earned/annual leaves. Self, spouse, and children are eligible.

#3:- Deduction u/s 80C: Exemption Criteria and Supporting Documents Required

• Life Insurance Premium / Pension Plan) 🡪 Copy of the Premium receipt. Note: Late payment interest fee charged will not be considered for exemption (Premium & GST will be eligible).
• Contribution to Public Provident Fund 🡪 Copy of the Premium receipt. Note: Late payment interest fee charged will not be considered for exemption (Premium & GST will be eligible).
• NSC 🡪 Copy of the certificates purchased during the year 2023-24
• Accrued Interest on NSC 🡪 Copy of certificates to be enclosed with the date of purchase and the amount.
• ULIP / LIC Mutual Fund 🡪 Copy of ULIP statement for all months.
• Other eligible investments 🡪 Copy of the Certificate, Receipt, Passbook etc.
• Children’s education expenditure 🡪 Copy of receipts for tuition fees and exam fees (excluding donations & development fees, bus, textbooks, private tuition, or tutorial fees) paid to any university, college, school, or other educational institution in India during the current year for a maximum of 2 children. If the receipt includes the combined amount of tuition fees and other expenses, attach details of the breakup.
• Post-office five-year time deposit scheme “PO TDR 1981” 🡪 Copy of Receipt/Certificate.
• Post-office five-year time deposit scheme “PO TDR 1981” 🡪 Copy of Receipt/Certificate

#4:- Deduction under 80D: Exemption Criteria and Supporting Documents Required

Medical Insurance Premium:

• Case I: Deduction available up to Rs. 25,000 on the life of the taxpayer, spouse and dependent children;
• Case II: Preventive Health Check-up: A deduction of up to Rs. 5,000/- for preventive health check-ups of self, spouse, parent(s), or dependent children within the maximum limit of Rs. 25,000/-.
• Case III: Further, an additional deduction of up to Rs. 25,000 is available on the life insurance of the taxpayer’s father and/or mother if their age is less than 60 years.

A copy of the premium receipt paid during FY 23–24, along with a copy of the policy containing the name and age of parents (mode of payment should be other than cash). No deductions can be claimed for in-laws.

#5:- Deduction u/s 80DD: Exemption Criteria and Supporting Documents Required

• Expenditure incurred for medical treatment, training, etc. for handicapped dependents with disabilities.
• Available Deduction: A flat deduction of Rs. 75,000 for disability conditions (more than 40%). Flat deduction of Rs. 1,25,000 For severe handicap Disability conditions (more than 80%).
• Scope of Deduction: Parents, spouses, kids, and siblings who are dependents may all claim deductions. Note that the dependent must not have received any reimbursement for their incapacity.

Proof of the amount spent OR a properly signed written declaration attesting to the precise amount spent AND a receipt or acknowledgement for the money paid into the designated LIC/UTI schemes

Certificate of Permanent Physical Disability (FORM 10-IA) from a doctor, surgeon, oculist, or psychiatrist who works in a government hospital, as applicable. The name of the employee on the certificate should appear on it.

The report must include the percentage of disability to qualify for the severe disability exemption.

#6:- Deduction u/s 80U: Exemption Criteria and Supporting Documents Required

• Deduction for certain disorders for oneself or one’s dependent in the event of total blindness, physical impairment, or both.
• The deductions that are possible are a flat deduction of Rs. 75,000 for disability conditions (more than 40%). flat deduction of Rs. 1,25,000 for severe handicap Disability conditions (more than 80%).

Permanent physical handicap certificate (FORM 10-I) from a government or private hospital-employed physician, surgeon, oculist, or psychiatrist, as applicable. There should be the employee’s name on the certificate.

#7:- Deduction u/s 80E: Exemption Criteria and Supporting Documents Required

• Interest on Education Loan Repayment for Individual Higher Education.
• For eight years (or the loan closure, whichever comes first), there is an exemption from interest on the Education Loan for postsecondary education. There is no exception for the loan’s principal amount.

A letter or certificate from the bank or financial institution certifying the following: The loan should be an education loan. Amount of actual interest paid on loans in the current financial year (Apr’23–Mar 24).

#8:- Deduction under 80EE: Exemption Criteria and Supporting Documents Required

• Interest paid on a loan used to buy residential property
• The loan was approved between April 1st, 2016 and March 31st, 2017.
• The loan amount does not surpass INR 35 lakhs.
• The property’s stamp value does not surpass INR 50 lakhs.
• At the time of purchase, the assessee should have no real estate.
• The exemption’s maximum amount is $50,000 in interest.

The following is certified by a letter or certificate from the bank or financial institution: The amount of actual interest paid on the loan for the current fiscal year (April 23–March 24). Documentation proving the loan was actually approved between April 1, 2016, and March 31, 2017.

#9:- Deduction u/s 80EEA: Exemption Criteria and Supporting Documents Required

Interest on a loan obtained to buy a specific piece of real estate,

• The loan was approved between April 1, 2019, and March 31, 2022.
• The property’s stamp value cannot be more than INR 45 lakh. At the time of purchase, the assessee cannot have any real estate.

The following is certified by a letter or certificate from the bank or financial institution: The amount of actual interest paid on the loan for the current fiscal year (April 22–March 23). Document certifying the real loan that was approved between April 1, 2019, and March 31, 2022.

#10:- Deduction u/s 80EEB: Exemption Criteria and Supporting Documents Required

With the introduction of the 80EEB, interest paid on loans taken out for the purchase of electric vehicles will be deductible starting in AY 2020–21.

• A loan was obtained to buy an electric car.
• The loan needs to be approved between April 1, 2019, and March 31, 2023. Maximum exemption amount: INR 1,50,000.

To purchase an electric car, a bank loan should have been obtained from a financial institution or non-banking financial company. The loan must be approved at any point between April 1, 2019, and March 31, 2023.

#11:- Deduction u/s 80CCD1B: Exemption Criteria and Supporting Documents Required

Employees Contribution to New Pension Scheme of Central Government. [U/s 80CCD1B]: Additional NPS Contribution (External Investment) Employee contribution: 50,000 (Balance, if any, can be claimed in the 80C limit of 1,50,000)

NPS receipt to be submitted.

#12:- Deduction u/s 80DDB: Exemption Criteria and Supporting Documents Required

• Expenditure incurred for medical treatment, training, etc. for specified diseases for self/dependents (parents, spouses, children, and siblings)
• ₹40,000 if the assessee or the dependent is under 60 years old.
• ₹1,00,000 if the assessee or the dependent is over 60 years old.

The required Form 10IA is to be submitted.

#13:- Deduction u/s 80TTA: Exemption Criteria and Supporting Documents Required

Income earned from interest on savings made in a bank, cooperative society, or post office. Not applicable for interest earned from fixed, recurring, or time deposits, or for taxpayers over the age of 60. The maximum limit is ₹10,000. A bank statement and interest certificate need to be submitted.

#14:- Deduction u/s 80TTB: Exemption Criteria and Supporting Documents Required

Applicable only to senior citizens (age 60 and above) on income earned from interest on all types of deposits. The maximum limit is ₹50,000. A Bank Statement, Interest Certificate, and Proof of Age need to be submitted