INVESTMENT DECLARATION GUIDELINES FOR THE FY 2020-21

Important Note

 In case you have joined Company during the current Financial Year i.e. 2020-21, you are
required to submit Form 16 (from previous employer) or final tax computation received
from last employer to arrive at the correct tax liability.

 A possession certificate or Electricity Bill/Water Bill should be attached to claim interest

on house loan benefit.

 A copy of Landlord Pan Card / Landlord PAN is required in case Rent Receipt(s) are
submitted for more than INR 100,000 per annum or INR 8333 per month.

 Lender's Name and PAN No. should be accompanied in case of House Loan benefit is
being claimed.

 The monthly rent amount should be entered in a one-line item in ESS if rent amount and
property address is unchanged during the entire FY. If your rental address or amount
during FY 2020-21 has changed, then please fill details accordingly in the second line
item.

 If any of your premium is due after the cut-off date, please submit a declaration as
provided in supporting form along with payment made for these Policies / Schemes in
past as an evidence of payment and continuation of policies or schemes.

 Investment proof documents should be attached under the respective heads only.
 INVESTMENT DECLARATION GUIDELINES FOR THE FY 2020-21

As per New Tax

Investment As per Old Tax Regime Applicability
Regime Applicability

 Policy can be in the name of individual (Self), spouse, & children

Life Insurance  Any, late payment fees charges will not be considered as premium paid amount.
Premium  Maximum benefit, allowed is 10% of the sum assured on the policy taken after
April 2012.
 In case of Disabled individual (Self) is claiming benefit U/s 80U - maximum  Not Applicabl
benefit can be allowed for 15% of sum assured – Insurance should be in the
name of the disabled individual (Self).
 In case your premium due date falls after the cut-off date of investment proof
submission - please pay your premium in advance (*refer to Note below) or
submit copy of the premium paid in last financial year (2019-20).
 For Joint policy – please self-attest the documents to get the benefit.

Proof Required: An Individual needs to share Copy of all

premium receipts issued by the Insurance Company to be
shared as proof of premium paid.
 Amount deposited by an individual in his own account or in the name of spouse,
PPF & children.  Not Applicabl
 Interest earned on PPF, will not be considered in Income Tax benefit.
 Individual (Self) can submit and get the avail the up to Rs. 1,50,000/-

Proof Required: An Individual needs to share Copy of

stamped Deposit challan or PPF passbook to be shared as
proof of payment.
 Certificate can be in the name of individual (Self)  Not Applicabl
NSC  Individual (Self) can submit and get the avail the up to Rs. 1,50,000/-

Proof Required: An Individual needs to share Copy

of Receipts / Statement, as the proof of payment.
 Tuition fees paid for the financial year 2020-21 for the purpose of full time
Children education with any university, college, school and other educational institute in
Education fees India (i.e., Apr’20–Mar’21) will be considered for deduction (*refer to Note
(Tuition Fees) below).
 Any other Charges such as Donations, computer fee, School Van charges etc.  Not Applicabl
will not be considered.
 Maximum of two children; is allowed to avail the benefit of Tuition fees.
 Individual (Self) can submit and get the benefit up to Rs. 1,50,000/-

Proof Required: An Individual needs to share copy of Tuition fees receipts

issued by the school, college, university or educational institution as proof
of payment
 Policy can be in the name of individual (Self), spouse, & children.  Not Applicabl
ULIP  Individual can submit and get the avail the up to Rs. 1,50,000/-

Proof Required: An Individual needs to share copy of Receipts / Statement

to be attached as the proof of payment.

 Investment must be in the name of individual (Self)

 INVESTMENT DECLARATION GUIDELINES FOR THE FY 2020-21

ELSS / Notified  In case investment is done through SIP (Systematic investment Plan), the
Mutual Funds statement for such investment from the Bank or Mutual fund will be taken as
proof (*refer to Note below).  Not Applicabl
 Statement of the Fund should state that investment in the respective scheme is
eligible for deduction U/S 80C
 Individual (Self) can submit and get the benefit up to Rs. 1,50,000/-

Proof Required: An Individual needs to share copy of Receipts / Statement

to be attached as the proof of payment .
 Loan should be in the name of an individual (Self) or as Co -Owner (*refer to
Repayment of Note below)
Housing Loan  Loan for property (either for acquiring or for constructing the property), should
Principal have been taken on or after 01-Apr-1999.
Amount/Stamp  Acquisition or construction of the property should be completed within 5 years  Not Applicabl
Duty/Registration from the date of availing loan.
fee for transfer of  Certificate for FY 2020-21 from bank should specifically state the details of the
property property financed
 Individual (Self) can submit and get the benefit up to Rs. 1,50,000/-

*Note: In case loan is in Joint name – needs to fill up “Joint Declaration for
availing benefit of House Loan (2020-21 ) else proportionate amount will be
considered as eligible.

Proof Required: The Individual needs to share Principal/Interest

certificate copy provided by the Bank (certificate to include Bank’s
PAN) as the proof of payment. Possession letter or latest utility bill.
 Policy should be in the name of an individual (Self)
80CCC (Pension  Any, late payment fees charges will not be considered as premium paid amount.  Not Applicabl
Policy)  Individual can submit and get the benefit up to Rs. 1,50,000/-

Proof Required: An Individual needs to share Copy of receipt issued by

The Insurance Company to be produced as proof of payment.
 Fixed Deposit should be in the name of an individual (Self)
Fixed Deposit in a  It should be for minimum of 5 years period, with a scheduled bank  Not Applicabl
Scheduled Bank  Individual can submit and get the benefit up to Rs. 1,50,000/-

Proof Required: An Individual needs to share Copy of the

Receipt/certificate issued by the scheduled bank.
5 year Post office  Term Deposit should be in the name of an individual (Self)
Time Deposits and  Such deposit should be for a minimum of 5 years period  Not Applicabl
Senior Citizen  Individual can submit and get the benefit up to Rs. 1,50,000/-
Scheme
Proof Required: An Individual needs to share Copy of Receipts /
Statement to be attached as the proof of payment.
 Policy should be in the name of Girl Child only (*refer to Note below)
Sukanya  Maximum of two* Girl children; are allowed to Claim the benefit  Not Applicabl
Samriddhi Yojana  Individual can submit and get the benefit up to Rs. 1,50,000/-
Scheme *Note: The Individual/Spouse Name ( name of employee) should be in the as
guardian to avail the benefit
*Three if second girl child is twin.

Proof Required: Copy of the Receipt/ Passbook along with transaction

 INVESTMENT DECLARATION GUIDELINES FOR THE FY 2020-21

details as proof of payment.

 Premium should not be paid in cash

80D Mediclaim  Policy should be in the name of employee and also paid by employee.
Insurance Premium  Mediclaim Policy can be in the name of Individual (Self), spouse, & dependent
children.–Maximum Capping up to Rs. 25000/- (Inclusive-Health check-up up to
Rs. 5000/-)
 Mediclaim Policy can be in the name of Individual’s Parents (if not senior
citizen, but dependant) – Up to Rs. 25000/- ( Inclusive-Health check-up up to Rs.
5000/-)
 Not Applicabl
 Mediclaim Policy can be in the name of Individual’s Parents (if senior citizen,
and dependant) – Up to Rs. 50000/- ( inclusive-Health check-up up to Rs.
5000/-)
 For uninsured super senior citizens (more than 80 years old) medical
expenditure incurred up to Rs 50000/- shall be allowed as a deduction under
section 80D.
 In case of single premium medical insurance policy having cover of more than
one year, the deduction shall be allowed on proportionate basis for the number
of years for which such insurance cover is provided, subject to the monetary
limits specified above.
Note: However, total deduction for health insurance premium and medical
expenses for parents shall be limited to Rs 50,000. If both taxpayer and
parent in respect of whom the medical covers have been taken are aged
more than 60 years, the maximum deduction available under this section is
to the extent of Rs. 100,000.

Proof Required: Copy of receipt issued by the Insurance Company to be

submitted, and original bills are required for claiming health check-up
benefit.
80DD Expenditure  Medical treatment for handicapped dependent:
incurred on Medical Fixed deduction of Rs 75,000 in case Disability is more than 40% but less than
Treatment of 80%, and  Not Applicabl
Handicapped
Fixed deduction of Rs. 1, 25,000 in case Disability is more than or equal to 80%.
Dependents

Proof Required: Copy of certificate required which contains name and age
of the patient, name of the disease or ailment, name, address, registration
number and the qualification of the specialist issuing the prescription along
with self-declaration of medical expenses incurred on treatment of
handicapped dependents

80U Deduction in  Medical treatment for Permanent Physical disability Self:

case of person with Fixed amount of Rs.75,000in case of Disability is more than 40% but less than  Not Applicabl
a disability. 80%
Fixed amount of Rs.1,25,000 in case of Disability is more than or equal to 80%
Proof Required: Copy of certificate issued by the competent medical
authority in a Government Hospital or private hospital, certifying the % of
disability of handicapped

80DDB Medical  Deduction on medical treatment for Self or dependents of specified illness /
Treatment for disease is up to Rs.40,000 for general category and limit is Rs 1,00,000 in case of
 INVESTMENT DECLARATION GUIDELINES FOR THE FY 2020-21

specified senior citizen & Very Senior Citizen  Not Applicabl

illness/diseases  Actual amount spent on the treatment or limit as mentioned in above point –
whichever is less will be eligible for deduction.

Proof Required: Copy of certificate issued by the competent medical authority

in a Government Hospital or from private hospital.
Original copies of medical expenses
 Pension Scheme should be in the name of an Individual (Self)
80CCD 1(B)  Additional Benefit of Rs 50,000 can be claimed under section 80CCD
(National Pension  The receipt/transaction must be of current financial year i.e. between 1st April  Not Applicabl
Scheme) 2020 and 31st March 2021

Proof Required: Copy of Pass Book must contain Particular Details (PRAN,
name of the account holder).for the payment in current financial year.
 Education Loan can be in the name of an Individual (Self), Spouse, for any one to
whom Individual (Self) is a Legal Guardian for pursuing his / her higher
education
80E (Loan Taken for  The course should be fulltime higher education or vocational course  Not Applicabl
Higher Education)  Loans should be availed only from Bank or Financial Institution; which are eligible
for deduction.
 Only interest is considered as part of deduction, whereas repayment of principal
is not
 The deduction is allowed up till 8 years from repayment start date.

Proof Required: Copy of certificate from the Bank/ Financial Institution certifying
that the loan is an Educational loan & stating amount of interest paid on the loan
in the current year is mandatory.
 A deduction of maximum Rs 10,000/- can be claimed, against interest income
from a savings bank account
80TTA (Deduction  Interest from savings bank account should be first included in other income and
from Gross Total deduction can be claimed, of the total interest earned or Rs 10,000, whichever
Income for Interest is less.  Not Applicabl
on Savings Bank  It can be claimed for interest on deposits in savings account with a bank, co-
Account) operative society, or post office.
 Section 80TTA deduction is not available on interest income from fixed deposits,
recurring deposits, or interest income from corporate bonds

Proof Required: Copy of Interest Certificate/Saving Bank Account Statement/

Passbook required.
 A new section 80TTB has been inserted by the Finance Act, 2018, wherein, a
80TTB (Deduction deduction in respect of interest income from deposits (including
from Gross Total savings/fixed/recurring) held by senior citizens will be allowed as a deduction
Income for Interest from the total income.
on Deposits – For  The limit for this deduction is Rs. 50,000/-  Not Applicabl
Senior Citizens)  Further, no deduction under section 80TTA shall be allowed
Proof Required: Copy of Interest Certificate/Saving Bank Account Statement/
Passbook required.
 A deduction in respect of interest payable on loan taken by an individual, who is
not eligible to claim deduction under section 80EE, from any financial institution
for the purpose of acquisition of a residential house property subject to certain
80 EEA (Additional condition.
 INVESTMENT DECLARATION GUIDELINES FOR THE FY 2020-21

Deduction in  Loan has been sanctioned by the financial institution during the period  Not Applicabl
respect of Housing beginning on the 1st day of April, 2019 and ending on the 31st day of March,
Loan) 2021.
 Stamp duty value of residential house property does not exceed forty-five lakh
(NEW SECTION) rupees.
 Assessee does not own any residential house property on the date of sanction
of loan.
 The limit for this deduction is Rs. 1, 50,000 (over and above 2 Lakh).

*Note: In case loan is in Joint name – needs to fill up “Joint Declaration for availing
benefit of House Loan (2020-21)

Proof Required: An Individual needs to share Principal/Interest certificate

copy as the proof of payment, Copy of stamp duty paper which contain the
value of property and self-declaration stating that assesse doesn’t own any
other house property.
 A deduction in respect of Interest payable on loan taken by an individual from
80EEB (Deduction any financial institution for the purpose of purchase of an electric vehicle
in respect to subject to certain condition.
purchase of electric  Loan has been sanctioned by the financial institution during the period
beginning on the 1st day of April, 2019 and ending on the 31st day of March,  Not Applicabl
vehicle)
2023
(NEW SECTION)  The limit for this deduction is Rs. 1, 50,000

Proof required:- Interest certificate from financial institution and copy of

registration certificate ( RC).

 Revenue Stamped Receipt can be furnished of a particular month or for a

quarter or for a half yearly or for a yearly (*refer to Note below)
 Name of landlord and address of rented property is mandatory on all rent
receipt
 Only Rent amount will be eligible for exemption purpose (Other incidental
expenses like Electricity / Water / maintenance are not allowed)
 Rent paid only for the current financial year will be considered for HRA  Not Applicabl
HRA
exemption (April’20–March‘21).

PAN and address of Landlord is mandatory as per Income Tax rule for those
employees who are paying Annual Rent more than 100,000 (Rent Amount Rs 8,333
 INVESTMENT DECLARATION GUIDELINES FOR THE FY 2020-21

p.m.)

*Note: Only Karnataka state can produce or share rent receipt without the
revenue stamp (as revenue stamp is not available in the state)
Proof Required: Original receipts / Photocopy of Receipts to be submitted.
 Loan should be in the name of an individual (Self) or as Co -Owner (*refer to
Note below)
 Loan for property (either for acquiring or for constructing the property), should
have been taken on or after 01-Apr-1999
 If the loan is taken before 01-Apr-1999 – maximum deduction will be Rs 30,000.
 Additional interest deduction of INR50,000 p.a. shall be available to a home
buyer, not owning a home as on the loan sanction date for housing loans up to
INR35 lakh sanctioned between April 2016 to March 2017 and value of the
property not exceeding INR 50 lakh. (Refer section 80EE).
 Acquisition or construction of the property should be within 5 years from the
 Not Applicabl
Interest on Housing date of availing loan.
Loan  Certificate for FY 2020-21 from bank should specifically state the details of the
property financed
 Certificate from bank should have Bank PAN Number.
 Possession letter / Sale deed is mandatory to get the benefit or employee can
submit the copy of electricity / Society Maintenance receipt / house tax
receipt / water bill or any other utility bill.
 Property should be in the name of assesse.
 For let out property Computation of Let-out property will be required.
 In case employee wants to avail both HRA and Housing loan Interest benefit –
Certificate for taking dual benefit of House Rent and Loan on House Property
(20-21) will be required.
 Individual (Self) can submit and get the benefit up to Rs. 2,00,000/- either House
is Self-occupied or Rented property.

*Note: In case loan is in Joint name – needs to fill up “Joint Declaration for
availing benefit of House Loan (2020-21 ) else proportionate amount will be
considered as eligible.

Proof Required: An Individual needs to share Principal/Interest certificate

copy as the proof of payment. Possession letter/Utility bill. Joint declaration
and declaration for claiming both housing loan/HRA, if required.

 FORM12B is important to fill and share to current employer at the time of

submitting investment Proof in case you have joined the organization after 1st
FORM12B April 2020.
 In case you do not have any earning in FY 2020-21, prior to the joining date of  Not Applicabl
this organization – please fill the attached declaration form “Declaration of First
Employer.pdf”
 For Previous employer details, we will consider earning to the extent of
declared income on form 12B whereas TDS will be consider to the extent of
actual TDS liability on this earning. After clubbing the earning for the financial
year -in case the mentioned TDS is higher we will restrict the same to the actual
INVESTMENT DECLARATION GUIDELINES FOR THE FY 2020-21

TDS liability on this earning.

Proof Required: Copy of FORM16/ Salary Certificate on company letter head/

F&F statement duly stamped by previous employer will be considered as
supporting along with FORM12B form.