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1. Investment Declarations

Employees declare those investments they have planned for the year which reduce their tax liability.
  • Financial investments like NPS, PPF, insurance premium and others are exempt from tax up to a limit, which reduces the total taxable income.
  • Employees can declare investments whenever the declaration window is open in Payroll.
  • Proof of such investments are required towards the end of the year, usually between December to March.

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2. Proof Submission

Organisations open proof submission windows to enable employees to upload the proof of investments, as declared at the start of the year. These proofs are approved basis the verified proof amount, as per the organisation’s policy. Using the submitted proofs, organisations calculate the total taxable amount and the subsequent tax reduction. The proofs submitted ensure the correct amount of tax is deducted. The tax calculations then reflect in the employees’ Form 16. You can always correct your tax deductions when filing your Income Tax Returns (ITR).
Handy Tips
Investment proofs/tax proofs reduce the total taxable income via exemptions and deductions. TDS is calculated on the reduced income, which then reduces the tax liability. Check how to declare and upload proofs when the proof upload window is open.
  • How to Upload Investment Proofs: Know how to upload investment proofs as an employee on the Payroll Dashboard.

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Submit Proofs

Refer to the guidelines below to understand the proofs to submit for the respective components and investments.

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House Rent Allowance (HRA) Proofs

Click the respective tabs to understand the exemption criteria and the proofs accepted.
  • HRA component in the salary.
  • Rent paid - 10% of basic pay.
  • 40% of basic for non-metro cities and 50% of basic for metro cities (Delhi, Mumbai, Chennai, Kolkata).
  • All rent receipts must:
    • Bear your name, details of the accomodation such as addresses, amount of rent paid per month/quarter.
    • Be duly signed by your landlord.
    • Date from April/month you started renting the accomodation to March/month of the current financial year that you last rented the accomodation.
  • You can submit both rent receipts or the rental agreement as proof of payment.
  • You must submit owner’s PAN if your monthly rent exceeds ₹8,333/- (₹1,00,000 per year).

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Leave Travel Allowance (LTA) Proofs

Click the respective tabs to understand the exemption criteria and the proofs accepted.
  • You can claim LTA two times in a span of 4 years (called a block).
    • The current block is from January 1, 2022 to December 31, 2025. You can claim two journeys within this block.
    • You can claim LTA for one trip per calendar year.
  • The journey undertaken must be on your organisation’s working days. Vacations on organisation-allocated holidays are not considered. For example, Sundays.
  • Only the travel cost is exempt. Hotel, stay and food expenses are not exempt.
  • Tickets/passes/invoices must bear your name.
  • Every individual who undertook the journey must bear a separate ticket.

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Section 80 Deductions

Scroll horizontally on the section names to view the proof submission guidelines.
  • Life Insurance Premium and Public Provident Fund (PPF) Contribution:
    • Premiums paid in the current financial year is exempt under section (u/s) 80C.
    • Submit the receipt of premium paid.
    • Only the premium paid and taxes is exempt. Late fees, taxes on late fees and more are not exempt.
  • National Savings Certificate (NSC):
    • NSC is exempt upto ₹1.5 lakhs in a financial year. Submit a copy of proof of certificates along with the date of purchase and amount.
    • Interest earned on NSC for the first four years is tax-exempt. It is taxable from the fifth year onwards.
  • ULIP/LIC Mutual Funds:
    • Submit a copy of the ULIP statements for all months invested.
  • Childrens’ Tuition Expenditure:
    • Copy of receipts of the tuition and exam fees paid to any university/school/college.
      • Excludes donations, development fees, bus, text books and uniform fees, private tuitions and more.
    • Covers maximum 2 children.
    • If receipt combines tuition fees and expenses, submit the receipt with the amounts break down.
  • Post Office 5 Year Time Deposit Scheme/Other eligible investments:
    • Submit the copy of passbook/receipts/certificates/acknowledgements.
80C allows deductions towards medical expenditure, insurance and disability claims. 80D Medical Insurance Medical Insurance Premium: Medical insurance premiums are exempt from tax in three cases:
  1. Upto ₹75,000 on the life of the taxpayer, spouse and dependent children.
  2. Preventive health check-ups of ₹5,000 for self, spouse and dependent children. Maximum exempt: ₹25,000
  3. Additional deduction of ₹25,000 available of taxpayer’s father and/or mother (if they are younger than 60 years).
To submit proof:
  • Submit the premium payments’ receipt, copy of the policy that contain the details such as the name and age of the taxpayer’s parents.

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80DD/Medical Expenditure

Exemption Criteria/Criteria: Medical expenditure for training, treatment and others is exempt from tax upto a certain for your dependents with disabilities of various degrees.
  • Flat ₹75,000 for disability conditions more than 40%
  • Flat ₹1,25,000 for severe disability conditions more than 80%
  • Dependent can be the taxpayer’s parents, spouse, children and siblings.
  • Dependent must not have claimed any deduction in the financial year.
Proof Submission Best Practices:
  • Proof of expenditure incurred or a duly signed declaration in writing.
    • Writing must certify the actual expenditure amount and receipt/ acknowledgment for the amount paid/deposited into the specified schemes of LIC/UTI.
  • Permanent Physical Disability Cetificate (Form 10-IA) must be obtained from a physician, oculist, surgeon, psychiatrist.
    • Certificate must bear the employee’s name.
    • Certificate/acknowledgement must contain the % of disability if it is a severe disability.

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80U/Blindness & handicap

Deductions/exemptions under 80U are for the taxpayer’s disabilities.
  • Flat ₹75,000 for disability conditions more than 40%
  • Flat ₹1,25,000 for severe disability conditions more than 80%
Proof Submission Best Practices:
  • Permanent disability certificate (Form 10-I) must be obtained from a physician, oculist, surgeon, psychiatrist.
  • Certificate must bear the employee’s name.
  • Certificate/acknowledgement must contain the % of disability if it is a severe disability.

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Medical Slabs Information

Section 80 allows tax exemption on interest on multiple loan repayments.

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80E/Interest on Repayment of Education Loan

Exemption Criteria/Criteria: Interest incurred on repayment of education loan is tax exempt in the following conditions:
  • Interest incurred is on an education loan.
  • Loan is availed by the employee for higher studies for self.
  • Interest on repayment of up to 8 years/loan closure (whichever is earlier) is tax exempt.
  • Principal loan amount is not exempt.
Proof Submission Best Practices: Letter/certificate from the bank/financial institution certifying:
  • Loan is an education loan.
  • Amount of actual interest paid in the current financial year is exempt.

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80EE/Interest on Repayment of Home Loan

Exemption Criteria/Criteria: Interest incurred on repayment of loan for purchase of residential house property is tax exempt in the following conditions:
  • Loan was sanctioned between Apirl 1, 2016 - March 31, 2017.
  • Stamp value of the property does not exceed ₹50 lakhs.
  • Loan amount does not exceed ₹35 lakhs.
  • Taxpayer must not own any existing residential property at the time of house purchase.
  • Interest of up to ₹50,000 is exempt.
  • Principal loan amount is not exempt.
Proof Submission Best Practices: Letter/certificate from the bank/financial institution certifying:
  • Loan is a house loan.
  • Amount of actual interest paid in the current financial year is exempt.

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80EEA/Home Loan or Certain House Property

Exemption Criteria/Criteria: Interest incurred on repayment of loan for purchase of certain house property is tax exempt in the following conditions:
  • Loan was sanctioned between Apirl 1, 2019 - March 31, 2022.
  • Value of the property does not exceed ₹45 lakhs.
  • Loan amount does not exceed ₹35 lakhs.
  • Maximum interest of up to ₹1,50,000 is exempt.
  • Principal loan amount is not exempt.
Proof Submission Best Practices: Letter/certificate from the bank/financial institution certifying:
  • Loan is a house loan.
  • Amount of actual interest paid in the current financial year is exempt.

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80EEB/Electric Vehicles

Exemption Criteria/Criteria: Interest incurred on repayment of loan for purchase of electric vehicles is tax exempt in the following conditions:
  • Loan was sanctioned between Apirl 1, 2019 - March 31, 2023.
  • Maximum amount of up to ₹1,50,000 is exempt.
  • Loan must be taken for purchase of an electric vehicle of any kind.
Proof Submission Best Practices: Letter/certificate from the bank/financial institution certifying:
  • Loan is a house loan.
  • Amount of actual interest paid in the current financial year is exempt.
Employee’s contribution of ₹50,000 towards National Pension Scheme (NPS) is exempt. Balance amount (of ₹1.5 lakhs), that is, a total of ₹2 lakhs can be claimed under Section 80C. Submit the NPS contribution receipt or the account statement. Any donations to trusts, funds, political parties and others are exempt under 80G to a certain limit. Uploading 80G proofs is only possible if you allow employees’ 80G contributions. Proof of payment and receipt must be submitted.

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Sec 24 R.W 192 Loan on Construction

Loan taken to construct a residential property can be claimed as tax exempt in the following conditions:
  • Construction must be completed within 5 years.
  • Maximum of ₹2,00,000 in interest paid for five years is spread out for the next five years to claim.
  • Loan is before April 1, 1999: ₹30,000
  • Loan is after April 1, 1999: ₹2,00,000
  • Loan taken for repair, reconstruction, renewal: ₹30,000 is exempt.
  • Loan must not be a personal loan taken for home use.
Proof submission best practices:
  • Submit the provisional interest certificate issued by your bank that details the principal amount and the interest payable.
  • Submit the posession certificate from builder/society/electricity bill/sale deed/municipal tax receipt.