YEAR - END 2021-2022

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Sec-10 Exemption:

HRA
Chapter VI A
Section 80C
Housing Loan
IPSF
Section 10-HRA
Q1. I have not availed HRA exemption with my employer. Is it okay if I submit those Rent Receipts with the Current employer, and can
I avail HRA exemption?

The HRA exemption of previous employment will not be considered in present employment. It can be availed only from the date of joining
with the current employment.

Q2. Can I have the list of Metropolitan Cities? Is Bangalore considered as a Metropolitan city?

Following are the Metropolitan Cities and Bangalore will not be treated as Metro City.
Mumbai
Kolkata
Delhi
Chennai

Q3. I am staying in my own house, but I am paying Rent for my parents in a different location. Am I eligible to claim HRA exemption

HRA can be claimed only if the rent is paid in the city where you are employed with. In the current scenario the HRA exemption is not
allowed.

Q4. Why HRA is considered for per month value I have declared for 12 months ?

The HRA will reflect only per month on the IPSF. But the tax exemption will be calculated for the entire year based on HRA rule.

Q5. Do I need to submit the Rent Receipts for the entire year?

The original rent paid receipts till January ’2022 need to be submitted. For remaining months the rent amount will be considered by default.
Declarations should be submitted for future months (Client specific).

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Q6. Do I need to submit the Original Rent Receipts or Photocopies?

The Original Rent Receipts need to be submitted towards HRA.

Q7. How do you consider the receipts for February and March with January being the cut off month?
Rent Receipts till December/January will suffice, and the same rent will be considered for the remaining months by default

Q8. Is landlord PAN is mandatory?

Yes, the landlord PAN is mandatory if the rent amount is > or = to Rs.8333/- .

Q9. Recently I have shifted my house; can I submit the receipts for two different houses?
Yes, HRA exemption for rent paid for two different house is eligible based on the rent receipts are submitted as supporting proofs.

Q10. Is a Revenue stamp on Rent Receipt mandatory?

Revenue Stamp is mandatory on Rent receipt except for the location Karnataka.

Q11. I share the rent with a Roommate, but we have only one rent receipt a month; how do I submit the Rent Receipts?
In this case, you need to submit a declaration from your roommate about the sharing of Rent along with the proportionate amount

Q12. I am paying a Rent of Rs. 2500/- pm; do I need to submit Rent Receipts?
It is not mandatory if the Rent amount is less than Rs.3000/- pm. Please check for the client specification.

Q13. I have not planned my HRA in the previous months; is it okay to submit Rent Receipts for the entire year? Will I be eligible to
avail HRA exemption?
In order to avail HRA exemption, HRA should be paid as earning component.

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Q14. Do I have to enter the Rent Receipt amount in the IPSF as Per Quarter, P.A, and P.M

The Per month rent paid amount need to be entered in the IPSF. But, the tax exemption will be calculated for the entire year based on
HRA rule.

Q15. Do I need to submit Rent Agreement along with Rent Receipts? Is it mandatory? No, the rental agreement is not mandatory
HRA Continued

Q16. My owner is staying abroad & I am not in a position to receive the Rent Receipts. Is it sufficient to submit the bank statement that
shows the Rent debited from my bank account?

The bank statement will not be considered as valid proofs towards HRA.

Q17. What all documents need to be submitted for HRA?

The documents to be submitted for HRA are as follows, a. Original rent receipts
The PAN of landlord is mandatory if rent amount per month is more than Rs.8333/-
HRA Declaration for future months to be submitted.

Q18. Can I claim HRA and housing loan if both are in same cities?

The HRA and Home loan benefit for self-occupied property can be availed only if both the rented houses and the property are in two
different cities. If both are in the same city, employee can avail either HRA or Home loan benefit

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CHAPTER V1 A – Section 80D-Medical Insurance
Q1. I have taken a Medical Insurance scheme last month, will this premium be considered for tax exemption?
Yes, the Medical insurance premium paid for the current FY will be considered for tax exemption under Section 80D.

Q2. What is the maximum limit under the Section 80D?

The maximum limit under section 80D is as follows:

Rs.25000 limit in case of self, spouse and Children.
Rs.50000 limit in case of self, spouse, children and dependent parents below 60 years. Rs.75000 limit in case of self, spouse, children and any
one dependent parent above 60 years.
Preventive health checkup is allowed for deduction up to Rs.5000/- within the overall deduction limit.

Q3. I’m paying medical insurance premium for my parents-in-law. Is this premium considered for tax exemption?

No, the medical premium paid for parents-in-law will not be considered for the tax exemption under Section 80D.

Q4. There is Mediclaim amount deducted from my monthly salary. Do I need to declare this on portal and submit the proofs?

No, the Mediclaim premium deducted from your salary will be considered for tax exemption by default, you need not submit proofs for the
premium paid.

Q5.Is Medical claim/expense reimbursement and Medical Insurance the same?

No, both the concepts are different. Medical expense reimbursement is the actual medical expense incurred by the employee or dependents,
for which the actual medical bills are to be submitted for tax exemption. The exemption will be given under Section 10. Medical insurance is
the medical policy that is taken from the Insurance company, and the exemption for Medical insurance premium will be considered under
Section 80D.

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Q6. What kind of proofs will be considered valid for claiming the exemption under Section 80D?
Photocopy of the premium paid receipt for current FY and the insurance certificate (certificate should specify that benefit is eligible u/s 80D)
issued by the Insurance Company will be considered as valid proof.

Q7. The Medical insurance policy certificate issued does not specify that it is covered under section 80D. Will this certificate still be
considered as valid proof?

No, this proof will not be considered as valid. The receipt or certificate should specify that the benefit is eligible under Section 80D.

Q8.The maximum limit under Section 80D is Rs.75000/-, so will I get the maximum benefit?

The maximum benefit of Rs. 75000/- is only in case of the policy is covered for self, spouse, children and any one senior citizen parent.

Q9. I have paid late payment fine and service charges along with the premium amount, will this excess late payment amount also be
considered for tax exemption.

No, only the premium amount will be considered for tax exemption calculation.

Q10. Is the Preventive health checkup covered under Section 80D?

Yes, preventive health checkup is allowed for exemption for up to 5000/-, within the overall deduction limit.

Q11. I have paid premium in advance for the current FY, in the previous FY, can this be claimed for tax exemption?

No, as the premium receipt holds the payment date of the previous FY, it will not be valid for tax exemption even though the payment
period is for the current FY.
Q12. For the next FY, I have made the advance payment now; can I claim this under section 80D?

Yes, the benefit can be availed for the advance payment in the current FY as the benefit will be given based on the date on which the
payment is made.
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80DD - Medical Treatment Physically Handicapped Dependents
Q1. To get the exemption under Section 80D what are the proofs to be submitted?

You are required to submit the copy of the certificate issued by the government hospital authorities specifying the % of disability (Form 10-
IA), along with Self-declaration mentioning amount spent on treatment, training or rehabilitation of the handicapped dependent or receipt
of the amount paid to LIC/UTI for the policy.

Q2. Can I produce the Form 10-IA issued by a private hospital?

No, Form 10-IA issued by the Physician/surgeon practicing in Government hospital will be considered as valid proof towards Section
80DD.

Q3. Who are the dependents covered under this section?

You can claim the Medical treatment spent on the following dependents - Spouse, Children, Parents, dependent brothers and sisters.

Q4. I’m working in the same organization from 2 years and I have already submitted the Form10-IA issued by the government doctor.
Should I still submit the Form even in the current FY?
Yes, you are required to submit the Form 10-IA and the self-declaration form has to be submitted year on year to consider the exemption.

Q5. The Form10-IA issued by my doctor is expired just a month ago, can I submit the same form for tax exemption calculation?

No, you are required to submit the renewed Form 10-IA during the proof submission process. If the expiry date on the Form is lapsed, then
it will be considered as invalid.

Q6. Will I get the exemption for the entire money spent of the medical treatment or there are any criteria for the exemption calculation?
The exemption under Section 80DD is based on certain criteria irrespective of the expenditure. The Criteria is as follows - (i)No benefit if
disability is less than 40%
(ii)Rs.75000/- if disability is equal to or more than 40% and less than or equal to 80% (iii)Rs.125000/- if disability is more than 80%

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Section 80DDB Medical Treatment for Specified diseases
Q1. What are the diseases covered under this section?
Following are the list of disease covered under this section.
1. Neurological Diseases
Dementia
Dystonia Musculorun Deformans
Motor Neuron Disease
Ataxia (v) Chorea
Hemiballismus
Aphasia
Malignant Cancer
Full Blow Acquired Immuno-Deficiency Syndrome(AIDS)
Chronic Renal Failure
Hematological disorders
Hemophilia
Thalassemia

Q2. What is the amount of deduction u/s 80DDB? Is it irrespective of the actual expenditure or fixed?
Following are the amount of deduction u/s 80DDB
i) If the amount is paid for a person < 65 years of age. The amount paid or Rs. 40,000
The least of the above is deductible under SEC 80DDB; ii) If the amount is paid in relation to a senior citizen, the deduction shall be allowed
for the amount paid or Rs. 100000 whichever is less. iii) The deduction shall be reduced by the amount received, if any, under insurance
from an insurer for the medical treatment of a person mentioned in this section or reimbursed by the employer.

Q3. What are the proofs to be submitted while filing for my individual Returns u/s 80DDB?
Certificate issued by a physician, surgeon, or a psychiatrist working in a government hospital, Copy of the policy. (Form 10I) along with
original medical bills are the proofs to be submitted.

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Q4. Can this exemption be claimed for dependents?
Yes, it can be claimed for Individual, spouse, children, parents, dependent brothers and sisters.

Section 80E Interest on Educational loan

Q1. Can I submit the loan taken by my spouse?
Interest on educational loan can be claimed for self, spouse and children.

Q2. Is there any limit that can be claimed under Section 80E?
There is no limit to claim under this section. The exemption will be based on the actual interest amount paid.

Q3. What kind of proofs are to be submitted for the interest repayment?
Provisional certificate from the Housing Finance Company /Bank specifying the following: (i) Type of loan is an Educational loan.
(ii) Amount of interest paid on the loan in the current FY.

Q4. Please classify “Higher Education”? Is an Education Loan for MBA studies eligible u/s 80E?

Higher Education can be classified as full time studies for any graduates or postgraduates course in Engineering, Management etc., and
MBA studies are eligible u/s 80E.

Q5. Why educational loan on Principal amount is not allowed u/s 80E?

Principal amount was allowed earlier, however, from financial year 2008-2009 onwards, the principal amount was not allowed u/s 80E. This
is as per IT rule.

Q6. I have taken a “Personal Loan” for my higher studies; am I eligible u/s 80E?

No, the loan must be taken for the purpose of pursuing higher education upon specifying that the loan is an “Education Loan “.

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Q7. I have taken the Educational Loan at a bank located in my home town. Hence, I am not in a position to collect the Provisional
Certificate within the cutoff date? Please advise if I can submit any self-declaration form.

Provisional certificate for the Interest on educational loan is mandatory, only the self-declaration form will not be considered valid.

Q8. I have taken the Educational loan 5 years back and I’m still paying the EMI for the loan taken, can I claim this interest under Section
80E?
Yes, the Interest paid for the first 8 years on the loan taken for higher education can be claimed for tax benefit.

Q9. Can I avail the benefit under Section 80E for any vocational courses that is related to my work/profession?
Yes, the interest paid towards the loan taken for the vocational courses can be availed under this section.

Section 80GG & 80G- Donations

Section 80GG
Q1.What is the eligibility to claim the exemption under section 80GG?
For assesse who does not receive HRA as part of the salary, and does not own a residential property at the place of work or has not claimed
any benefit under the Self occupied property can claim the exemption for the rent paid under section 80GG.

Q2. My rent paid per month is Rs.10000. Will this entire rent paid amount be considered for the tax exemption calculation?
The least of the following will be considered for tax exemption calculation.
(i)Actual HRA earned by the Assessee for the year.
(ii)Actual Rent paid minus 10% of Basic salary
(iii) 40% of Basic or 50% of Basic (in case of Metro cities)

Q3. What are the documents I need to furnish to avail the exemption?
You are required to submit the rent receipts along with the Form 10BA which is to be filled as per the CBDT notification.

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Q4. I have not opted for HRA payment through salary during the year, but I am paying Rent. Can I avail the deductions u/s 80GG?
Yes, however the 80GG deduction benefit will not be provided through payroll or by the employer. You need to avail this while filing the
Returns.

80G- Donations
Q1. I have made donations towards Uttar-khand relief fund and wanted to show this for tax benefit. Please let me know the particular
section to declare this amount?
We would like to keep you informed that, the tax benefit on 80G towards Donations would not be considered through payroll. This has to
be claimed while filing individual returns with the Income tax department.

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CHAPTER VI A Continued

Section U- Permanent Physical Disability including blindness

Q1. I am in the same organization and I had already submitted the 80U disability certificate last year. Do I need to produce the 80U
disability certificate every year?

Yes, you need to submit 80U disability certificate every year to avail the deduction.

Q2. What are the proofs required u/s 80U?

Photocopy of the certificate (Form 10-IA) issued by a competent medical authority in a Government hospital specifying the percentage of
disability.

Q3. What is the amount of exemption that I will be given after I submit the Form 10-IA?

The exemption under Section 80U is based on certain criteria irrespective of the expenditure.
(i)No benefit id disability is less than 40%
(ii)Rs.75000/- if disability is equal to or more than 40% and less than or equal to 80%
(iii)Rs.125000/- if disability is more than 80%

Q4. Are dependents allowed for avail tax benefit under section 80U?

Dependents are not allowed for exemption under this section, Only the assesse can avail tax benefit.

Q5. The disability certificate that I have does not specify the percentage. Can I still go ahead and submit that for tax exemption?

No, if the disability percentage is not mentioned in the Form 10-IA, then that form will not be considered valid, as the exemption under
section 80U cannot be arrived without the disability percentage.

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Section 80 C Continued…
PF – Provident Fund & VPF
Q1. What percentage is allowed for PF u/s 80C? Are both employee & employer contribution allowed?

The percentage allowed for PF u/s 80C is 12% i.e. employee contribution. Employer Deduction towards PF will not be considered for Tax
exemption.

Q2. Where should I declare PF & as there is no option in the IPSF?

You need not declare PF amount in IPSF. By default PF amount deducted through salary will be considered for tax calculation. Hence you
need not declare the same on IPSF.

Q3. Why PF approved status is not reflecting in the IPSF approval report?

The exemption towards PF will be considered by default. You can see the tax exemption provided in the IT computation sheet >> Page 2,
which will be hosted on the portal under My Reports >> IT computation Sheet.

Q4. Is VPF eligible for deductions u/s 80C?

Yes, VPF is eligible for deductions u/s 80C. VPF amount deducted through salary will be considered for tax calculation by default. Hence
you need not declare the same on IPSF.

Q5. What is the Maximum Tax exemption for VPF?

The Maximum Tax exemption towards VPF is Rs.150000.

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Section 80 C Continued….
Q6. The link is reflecting only 20 % of the total premium amount paid towards LIC, why ?

As per IT rule least of the following will be considered for tax exemption for current Financial Year under LIC. 1. 20% of the total sum
assured 2. Total premium paid. Hence, you are requested to declare the Total assured amount correctly in the sum assured column and
premium paid amount in the premium amount column.

Please go through as per below screen shot for % of eligibility on sum assured On IPSF while entering the details

Q7. What are proofs to be submitted towards LIC Premium amount?

Photocopy of receipts issued by the Insurance Company, pertaining to current financial year (Apr ’21 – Mar ‘22)
Policy can be in the name of individual, spouse, and children
In case of premium's falling due after the proof cut-off date, previous year's receipt should be enclosed before the cut-off date. The proof will
be undertaken by us and given the option for updating the future payments through IPSF in ESS portal by choosing the option as “Future”
from the drop down

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Section 80C Continued….

Public Provident Fund (PPF):

Q1. Can I declare PPF for my parents/ spouse?

Public Provident fund can be in the name of individual, spouse or children. However, you are not allowed to avail the tax exemption for the
investment made towards Dependent parents.

Q2. What are proofs to be submitted towards PPF?

Photocopy of PPF payment receipts (Challan copy)

Covering sheet of the employee pass book mandatory that states employee name & account number details
Receipts should be of the current financial year only (Apr’21 – Mar’22)

Q3. What is the Maximum exemption allowed towards PPF?

The Maximum Tax exemption towards PPF is Rs. 150000.

Q4. I had declared Rs.70000 towards public provident fund, however the same has been rejected with the reason Counterfoil alone does
not constitute as proof. Passbook is mandatory?

Online Statement can also be submitted as a proof towards PPF, counterfoil alone will not be considered

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Section 80C Continued….
FD – Fixed Deposit in scheduled Bank:
Q1. Is there any specific FD A/c for Income Tax, to avail deductions u/s 80C?

Yes, the proof should specifically state “Income Tax purpose u/s 80C”.

Q2. What type of proof is required for FD Account?

Photocopy of the receipt/certificate issued by the scheduled bank.

Q3. What is the tenure for FD A/c to avail deduction u/s 80C?

Term deposits for a minimum period of 5 years with a scheduled bank, are eligible for deduction.

Q4. Can I claim fixed deposit for locking period of 2 years?

Time deposit for a period of 5 years is eligible for deduction towards Fixed deposit under section 80c. Hence, you will not be able to claim
the fixed deposit for locking period of 2 years.

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Section 80C Continued….
Housing Loan Principal and Registration/Stamp Duty
Q1. Can I declare the Principal amount I pay as EMI for the property under construction?

Yes, you can claim the benefit of Principal amount u/s 80C.

Q2. Where should I declare my Housing Loan Principal and Stamp Duty Registration charged amount on the IPSF screen?

Please Login to HR workwaysindia.com with Pin and password provided.

Click on Year End Tab.
Click on IPSF 2021 -2022.
You need first select all the Investment which you would wish to avail the tax exemption.
Click on Section D – Housing Loan – Loss from House property Self Occupied or Let out property >> there will be separate column to stamp
duty registration charges.

Q3. Can I declare the Stamp Duty registration charges paid in the Previous FY 2020-2021.

The Stamp Duty registration charges paid in the current financial year 2021 -2022 can only be declared, the Stamp Duty registration charged
paid in the previous FY 2020-2021 will not be considered in the current FY.

Q4. I and my spouse both have availed loan for housing loan; can we both claim the benefit?

Yes, both you, and your spouse can claim the housing loan benefit, and the benefit will be given based on the percentage of the repayment
of loan i.e. Employee has to declare the portion of the amount paid by him/her in the IPSF.
The percentage of benefit claimed by the individual must be specified under Click on Section D – Housing Loan – Loss from House property
Self Occupied or Let out property >> Loan Type has single or Joint and specify the percentage that you wish to avail Proofs to be submitted:
Provisional certificate pertaining to current financial year (Apr ’21– Mar ‘22) with the breakup of interest and principle from the Housing
Finance Company / Bank.
Declaration specifying the % of benefit claimed by the individual – Declaration form will be auto generated in the IPSF once filling all the
details.
Photocopy of Sale Deed and Stamp Duty Paid Receipt pertaining to current financial year (Apr ’21– Mar ’22).
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Section 80C Continued….

Q5. I have enclosed the Provisional Certificate along with the IPSF, but I declared Interest & forgot to enter the Principal amount. Will
that be taken care of by you directly or do I have any other option to include this in the IPSF?

We will be unable to approve the principal amount from backend, as a communication was sent to check, and revert for clarifications.

Q6. What are the proofs required for Stamp/Registration Duty?

Photocopy of Sale Deed and Stamp Duty Paid Receipt for the current financial year.

Q7. What is the cap limit for Housing loan principal amount under section 80c?

As per the IT rule, principal amount can be claimed up to Rs.150000/- under section 80C.

Q8. Property is in my father's name and I am paying the repayment. In this case can I avail benefit?
This is to inform you that, if the provisional certificate is issued in your name, you can avail the benefit for the same.

Q9. What is the maximum limit that can be availed under if the loan is taken for renovation?

Please be informed that, in case the loan is taken for renovation Rs. 150000/- towards principal and Rs. 30000/- towards interest amount can
be availed.

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Section 80C Continued….

CEF – Children Education Fees:

Q1. Can I claim Tuition Education Fees for my son who is pursuing graduation?

You can claim Tuition fees only up to Pre-University level. (i.e, 12th Standard).

Q2. I had claimed Rs. 80000 towards Children tuition Fee, however, only 50000 has been considered, why?

Only the amount mentioned as “tuition fees and Term Fee” on the receipt submitted will be considered for deduction. Hence there is
difference in approved amount and declared amount.

Donations, Capitation Fees, Computer Fees, Uniform Fees, sports Fee etc., are not allowed.

Q3. What are the proofs to be submitted towards Children Education Fees?

Proofs to be submitted are Photocopy of Receipts for tuition fees paid, pertaining to current financial year only (Apr’21 – Mar’22).

An individual is allowed to claim a deduction up to Rs.1, 50,000/- in respect of tuition fees paid to any university, college, school or other
educational institution situated in India, for the purpose of full-time education of any two children of the employee. The Circular clarifies
that full-time education includes any educational course offered by any university, college, school or other educational institution to a
student who is enrolled full-time for the said course. It is also clarified that full-time education includes play-school activities, pre-nursery
and nursery classes

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Section 80C Continued….
NSC – National Saving Certificate:

Q1. I have taken a NSC certificate in the previous FY? Can I avail the tax exemption in the current FY?

Only NSC certificate taken in the current FY can be declared in the IPSF, and avail the tax exemption.

Q2. What are the proofs to be submitted to avail the Tax exemption?

a. Photocopy of receipts / certificates pertaining to current financial year only (Apr ’21– Mar ’22).

Q3. My NSC certificate is in the name of my spouse, can I avail the tax exemption under Section 80 C?

NSC Certificate should be only in the name of individual (Self only). Certificates in the name of spouse, children and parents are disallowed.

Q4. What is the Maximum benefit that I can avail under Section 80 C NSC?

Answer: Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.150000/-

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Section 80C Continued….
NSC Interest – National Saving Certificate Interest

Q1. I have taken the NSC certificate in the year 2005, can I avail the tax exemption towards NSC Interest in the current FY?

NSC certificate should have been taken on or after April 01, 2016, as the NSC certificate is taken in the FY 2005, you will be unable the tax
exemption towards National Saving Certificate Interest.

Q2. Is NSC Interest Taxable? Under what head is it taxable?

Yes, it is taxable under “Other Income “.

Q3. In the online IPSF, there is a section for detailing interest on the NSCs purchased earlier. Will you automatically calculate or do I
need to enter that information?

Yes, you need to calculate with the help of NSC calculator and update this in the IPSF.

Q4. I have taken NSCs of about Rs.1 lakh in the previous years. The interest has been reinvested in NSCs. In the year-end document, it
is stated that this interest is taxable. But one of my friends in a different company clarified that it is not taxable and we can continue to
show this as an investment. Please clarify.

No, the NSC interest should be taxed under “Other Income”.

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 Section 80C Continued….

IBOND – Infrastructure Bond and MF/ELSS –

Q1. There were ICICI/IDBI Bonds earlier, but these bonds no longer exist in the bank. Please suggest any of the infrastructure bonds
that are available in the market?

It’s not advisable for us to provide consultation about this. You are requested to get in touch with the Bank for more details about IBonds.

Mutual Fund & Equity Linked Saving Scheme:

Q1. I have a monthly SIP for some mutual fund schemes, for which I have the proof till December. The payment is through ECS. Please
let me know what proofs need be submitted for the remaining period (January-March).

In this case, you can submit the statement till December, and we will project the SIP amount for the remaining months of the year and based
on the declaration form.

Also note that, for any Premiums falling due after the Proof Cut off Date, declaration as per enclosed format needs to be submitted with
IPSF, to avail the benefit.

Q2. I've bought mutual funds online; will a print of it is sufficient as proof, or does it require a seal/signature from ICICI bank?

Yes, the online proof will be sufficient.

Q3. I have planned to invest in Mutual fund ELSS; I would receive the receipt end of this month. How do I go about submitting proof?

If you are planning to invest, there isn't an option for you to declare in the IPSF. You can avail benefits while filing of your individual
Returns.

Q4. I have taken the Mutual Fund in the name of my spouse, can I avail the tax exemption?

Tax can be declared on the IPSF only if the Mutual Fund is taken in the name of Individual.

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 Section 80C Continued….
Q5. What is the Tax exemption towards Mutual Funds?

Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.150000/-

Q6. What are the Proofs to be submitted towards Mutual funds?

Photocopy of Receipts / Statements pertaining to current financial year only (Apr’21 – Mar’22) - Specified funds only.

Receipt should be in the name of individual (Self only). Certificates in the name of spouse, children and parents are disallowed.

Policy should specify that benefit eligible u/s 80C.

Declaration for future months to be submitted.

ULIP – Unit Linked Insurance Premium:

Q1. I have a ULIP in my husband's name, but payment is made through my bank account. Please advise if this will be considered as a
tax saver?
You can avail the tax exemption only if the insurance is in the name of Self , Spouse & children. Receipt can be in the name of individual,
spouse, and children.

Q2. What are the proofs to be submitted towards ULIP?

Photocopy of Receipts / Statements pertaining to current financial year only (Apr’21 – Mar’22). Receipt can be in the name of individual,
spouse, and children. Declaration for future months to be submitted

Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.150000/-.

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 Section 80C Continued….

Deposit Under Sr. Citizens Saving Scheme:

Q1. What is the age limit to “Deposit under Sr. Citizens Saving Scheme“ to claim the benefit u/s 80C?

The age limit as per the bank is 60 years, and above.

Q2. What are the proofs to be submitted towards Deposit under Sr. Citizens Savings Scheme?

Bond should be of the current financial year only (Apr’21– Mar’22), and Policy should specify that benefit eligible u/s senior citizen saving
scheme.

Maximum deduction is allowed under Sec-80C (including 80CCC) is Rs.100000/-.

Five Year Time Deposit Scheme in Post Office:

Q1. I have I recurring deposit, can I declare it under Five year Time Deposit scheme in Post office?

Only fixed deposit or Term deposit can be declared under Five year Time Deposit scheme in Post office.

Q2. Can I avail the Tax ex-emption if the deposit is made in the name of spouse?

Certificate should be only in the name of individual (Self only), and this can be declared under Five year Time Deposit scheme in Post office.

Q3. What are the proofs to be submitted towards Five year Time Deposit scheme in Post office?

Copy of the Receipt/certificate issued by the Post office, Time deposit for a period of 5 years with a post office is eligible for deduction.

Certificate should be in the name of individual (Self only).

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 Section 80C Continued….

80CCC – Pension Policy:

Q1. My Pension Plan is due after the proof submission cutoff date? How can I submit?

In case of premium's falling due after the proof cut off date, previous year's receipt should be enclosed before the cut off date. The proof will
be undertaken by us and given the option for updating the future payments through IPSF in Excelity portal by choosing the option as
“Future” from the drop down.

Q2. Does "Contribution to Pension Fund (80CCC)" mean EPF (Employee Provident Fund)?
These are two different heads. Any deduction through salary will be considered by default.

Q3. What are the proofs to be submitted towards Pension policy?

Photocopy of receipts issued by the Insurance Company, pertaining to current financial year (Apr ’21– Mar ’22). Policy can be from any
approved company by IRDA (Insurance Regulatory & Development Authority)
Policy can be in the name of self and should specify that benefit eligible u/s 80CCC (Pension).

Rajiv Gandhi Equity Savings Scheme (80CCG):

Q1. Can you please ex plain the Tax benefit towards Rajiv Gandhi Equity Saving scheme?

Amount of deduction is at 50% of amount invested in equity shares. However, the amount of deduction under this provision cannot exceed
Rs. 25,000
The assesse is a new retail investor –

a) any individual who has not opened a demat account and has not made any transactions in the derivative segment as on the date of
notification of the Scheme.

(b) Any individual who has opened a demat account before the notification of the Scheme but has not made any transactions in the equity
segment or the derivative segment till the date of notification of the Scheme.

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 Section 80C Continued….

Q2. What are the proofs to be submitted towards Rajiv Gandhi Equity Saving scheme?

Copies of A&B

A. The Demat account with the details of investments made in

1. Shares given under BSE100 2. Shares given in CNX100

3. Shares of Navratnas, Maharatnas and Miniratnas companies 4. Follow on public offers of above companies
IPO (initial public offers) of PSUs.
Mutual funds who has invested in above five type of shares shown above.
ETF (exchange traded funds ) invested money only in 1-5 sr number shown above,
B. Copy of Form a - declaration to be submitted by depository participant, or copy of Form B -declaration to be submitted by the new retail
investor.

Interest on Savings Bank account:

Q1. Can I declare the Interest received from Fixed deposit or any other Non-Saving Bank?

No, only Interest on Saving Bank will be considered.

Q2. Will Interest form Savings Bank be considered has Other Income?

Yes, it will be considered as Other Income.

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 Section 80C Continued….
NPS: National Savings Scheme (Only if it is applicable)
Q1. What do you mean by NPS ? and under which section we can avail tax benefit on NPS?
Maximum deduction is allowed under this section is within the overall Sec 80C limit of Rs.150000/-
National savings scheme from the current FY 2021 -2022 it is categorized under below mentioned sections with additional tax benefit of Rs.
50000/- which is over and above 150000/- limit u/s 80c.

Section 80CCD1: If there is any deduction towards NPS from your salary directly, it will be considered under this section Section 80CCD1B:
This section is application if the total contribution (salary deduction + external investment) is more that 150000/- then additional benefit of
Rs.50000/- can be claimed under this section.
Section 80CCD2: It is applicable only if the employer contribution towards NPS through salary

Q2. What are the Proofs to be submitted towards NPS declaration?

In case of NPS contribution made outside of salary pertaining to the current financial year (Apr'21 - Mar'22). Photocopy of Receipt/Challan
issued by the Bank or Post office. The challan copy should have the PRAN details of assesse

Sukanya Samriddhi Account Deposit Scheme:

Q1. What is Sukanya Samriddhi Scheme ? Who is eligible for the scheme?
Sukanya Samriddhi Scheme : This scheme enables the members of the public to invest Sukanya Samriddhi account deposit scheme and
obtain tax rebate applicable for investment made in the name of employee’s daughter.
Eligibility : Sukanya Samriddhi Scheme Public Provident fund should be in the name of daughter.

Q2. What Proofs needs to submitted under Sukanya Samriddhi Scheme?

The copy of the certificate for the investment made under this head issued by post office Receipts should be of the current financial year
only (Apr ’21 – Mar ’22)

Q3. How much exemption can be availed under this scheme?

Maximum deduction is allowed under this scheme is Rs.150,000/- which is considered u/s 80c deductions.

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Housing Loan Continued…..

Section 80EE
Q1. How can we avail the benefit under section 80EE ?
Employee can avail additional benefit of Rs.50000/- for a Self occupied property of Rs.200000/-.

Q2. What is the exemption criteria under this section ?

The exemption is based on the below criteria's,
Loan should be sanctioned during the financial year 01/04/2016 to 31/03/2017.
Loan Sanctioned amount does not exceed Rs.35 lakh

Value of residential property does not exceed Rs.50 lakh

The assessee does not own any other residential house property on the date of sanction of loan.

Section 80EEA
The loan must be taken between April 1, 2019 and March 31, 2022;
The value of house property must not exceed Rs 45 lakh; Individual should not own any house on the date of sanctioning of loan; and
The individual taxpayer should not be eligible to claim deduction under the existing Section 80EE.
Provisional certificate pertaining to current financial year (Apr ’21 – Mar ’22) with breakup of interest and principal from the Housing
Finance Company / Bank. PAN and address of the Bank should be provided.

A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA. This deduction is over and above the deduction of
Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act.

Therefore, assesse can claim a total deduction of Rs 3.5L for interest on home loan, if he / she meets the conditions of section 80EEA.

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Housing Loan
Q1. What do you mean by “Loss on House Property “or “Interest on Borrowed Capital”?

Interest payable/paid on Housing Loan is treated as “Loss on House Property” and it is also known as “Interest on
Borrowed Capital”. "Property" means the house property which was acquired / constructed out of the loan availed.

Q2. What do you mean by “Income from House Property “?

If the house is let out and the rental income is greater than the interest paid/payable on housing loan, then such value will
be considered as income from house property.

Q3. What do you mean by “Self Occupied Property”? What is the maximum limit?

If the employee is living in a house owned by self, on which the employee has availed Housing Loan benefit, this will be
treated as “Self Occupied Property”.

An assessee can claim that he has two self-occupied house properties and hence deduction with respect to interest on
borrowed capital for self occupied house property can be claimed with respect to both the houses. However, there is no
change in the aggregate limit for the deduction on account of interest which remains the same, i.e. Rs. 2,00,000.

Q4. What do you mean by “Let Out Property”? What is the maximum limit?

With respect to a let out property, it is assumed that the employee has a property & has given for rent to someone &
receives rental income there is no change in the aggregate limit for the deduction on account of interest which remains the
same, i.e. Rs. 2,00,000.

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Housing Loan Continued…..

Q5. What do you mean by “Deemed Let Out Property“? What is the Maximum limit?

When an employee has occupied more than one house for self- occupation, then only one house (according to his choice)
will be treated as self-occupied and the other house/houses is/are treated as Deemed to be let out.
In the case of a deemed let-out property, the nature of which is self-occupied property or unoccupied property, the
computation of income shall be similar to that of let-out property.

Q6. What is Pre-EMI Interest? How much can I declare to show the loss?

The interest paid/payable for the pre-construction period is to be aggregated and claimed as deduction in five equal
instalments during five successive financial years starting with the year in which the acquisition or construction is
completed. This deduction is not allowed if the loan is utilized for repairs, renewal, or reconstruction.

Q7. My Income from let out property is negative, will I get the exemption or no ?

The Negative value from House property refers to Loss and this amount will be deducted from the taxable income as loss
from house property. If there is no negative value, then that amount will be added to your taxable income and this in turn
would increase your tax payable amount.

Q8. Can interest paid on hand loans taken from friends and relatives be claimed as deduction while calculating house
property income? What proof do I need to produce?

Interest paid on loan taken from friends and relatives can be claimed for tax exemption, you need to submit the signed
documents from lender for the interest paid for FY 2021-22.

Q9. If a property is not a residential house, can its income still be considered as income from house property?

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Housing Loan Continued…..

Yes, provided the property is not used for business purposes.

Q10. I have two houses. One is in native where my parents are staying and the other is in Bangalore. Is it right to treat
both these residences as self-occupied.?

You can claim any one house as self-occupied property and the other property as Deemed to be let out property by updating
the notional rental value.

Q11.I have purchased a plot, can I claim tax benefit on the loan repayment?

Ans: NO

Q12. My spouse and I are joint owners of a house constructed upon availing housing loan separately. Total interest paid
by us is Rs.150000 during this financial year. Are both of us individually/separately entitled for deduction of the maximum
interest payable of Rs.1.5 lakh?

The net taxable income from the property must be calculated first and then apportioned between the co-owners if the interest
is less than or equal to Rs.150000. In this process, husband & wife can claim interest benefit of Rs.75000 each. In the other case,
husband or wife alone also can fully claim benefit by submitting the declaration from the spouse stating that either of one is
not claiming any benefit towards house property.

Q13. I have 5 separate let out properties. Should I calculate the house property income separately for each individual
property or club all the rental receipts in one calculation?

The calculation will have to be made separately for the each property.

Q14. My spouse and I jointly own a house for construction of which both of us have invested equally out of independent
sources. Can the rental income received be split between us and taxed in the individual hands?

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Housing Loan Continued…..

Yes, it can be spilt and considered for tax computation.

Q15. I have taken “Personal Loan” for renovating the House, will that qualify towards claiming “ Loss on House
Property”?

The type of the loan taken should be ‘Housing Loan’ for claiming tax benefit . Personal Loan taken will not be considered.

Q16. Is it mandatory to show the calculation in case of “Let Out Property “?

Yes, it is mandatory for submitting the Let out calculation sheet along with the other documents for tax computation.

Q17. What proofs are to be submitted towards Housing loan?

As per the guidelines, for claiming tax benefit on housing loan you are required to submit the below proofs -

Provisional bank certificate pertaining to current financial year with breakup of interest and principle from the Housing
Finance Company / Bank.

In case of Joint loan, declaration specifying the percentage of benefit claimed by the individual.
Possession Letter from Builder / Completion certificate from Municipal authority required or the self-declaration form for
possession of the house property.

The Self Declaration Forms for possession and Joint Loan (if any) will be generated automatically along with the barcoded
IPSF after you confirm the IPSF screen, if you have declare your housing loan details.

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Housing Loan Continued…..

Q18. I am planning to purchase house in my wife’s name. She is Applicant, I am co-applicant. Will I get income tax
benefit? Home Loan is in my name. Can you please confirm this?

You will not be entitled for the tax benefit, as you are a co-borrower/co-applicant (home loan is in your name), and not a co-
owner (house will be purchased in wife’s name).

The housing loan interest benefit can be availed under Sec 24 or can claim the housing loan principal deduction under Sec
80C only in case the co-owner of the property is also a co-borrower of the home loan. The co-owner, who is not a co-
borrower or the co-borrower, who is not a co-owner, will not be able to avail the interest benefit or principal deduction.

The housing loan companies/banks usually require all co-owners to be the co-borrowers to a home loan; housing loan
providers will specify who can be a joint/co-borrower for a home loan.

The tax benefit will be shared by each joint owner in proportion to his/her share in the home loan. It’s important to establish
the share for each co-borrower to claim the tax benefit. As a pre-requisite to claim the interest benefit and the principal
deduction, the certificate issued by the housing loan company, showing the split between principal and interest for the EMIs
paid, is required.

Q19. I have paid Stamp Duty and Registration charges for purchase of a House Property; Can I claim tax benefit on this?

Yes, the amount you pay as stamp duty when you buy a house and the amount you pay for the registration of the house, can
be claimed as deduction under Principle amount, under section 80C, in the year of purchase of the house.

Q20. My housing Loan interest amount paid in more, but the tax benefit given is only Rs. 30,000.00. Why?

Tax benefit on Housing Loan will be restricted to Rs. 30,000.00 on the following scenario –
If the Purpose of the Loan is for repairs, renewals or reconstruction, the deduction is restricted to Rs.30,000.00
If capital is borrowed on or before April 1, 1999
If construction is not completed within 3 years from the end of the year in which capital was borrowed.

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Housing Loan Continued…..

Q21. How do I arrive at Notional Rental Income?

If the premises is left vacant / occupied by family, as per Section23 (1) (c), Notional Rental Income has to be arrived and
then, the net loss has to be arrived.

Notional rent to be taken as municipal valuation or the rent which similar property in the same locality would fetch,
whichever is higher.
However, if standard rent is fixed for the property, then notional rent cannot exceed the standard rent.

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 IPSF - Investments proofs submission form

Q1. Can I know the status of IPSF?

If received --> We have received your IPSF, at our end. You will receive the status of the IPSF very shortly.

If not received --> Please mention the date and location of submission of proofs.

Q2. Is validation completed have not received the status yet?

We have received your IPSF at our end, and the validation status will be sent through an auto mailer. Once the same is
received, you may check the status on Excelity Global portal, under the Link --> "IPSF approval Status".

Q3. Where do I claim mutual fund in IPSF as there is no tab for the same?

In order to claim towards Mutual fund, you are required to select ELSS from the Section selection page. In ELSS screen, you
can select Mutual fund from the drop down under type of fund and declare towards Mutual fund.

Q4. Where I can declare HRA on the IPSF?

You can declare for HRA rent amount In IPSF Form under Sec A "Claim for HRA Exemption". Monthly rent amount should
be entered.

Q5. Total interest field is not editable in Housing Loan Section?

You need to enter the date of occupation, only then the Total interest value field will be editable in Housing Loan Self /Let
out Section

Q6. Am not getting the name of My father in the Drop down list under Medical Insurance?

You need to update your dependent list in the Employee Master details, only then you can see the drop down for your
dependents.

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 IPSF - Investments proofs submission form Continued….

Q7. There are only 12 rows I can add for LIC and I have 2 policies, where one policy the premium is paid every month,
and the second Policy is paid in quarter. How do I enter?

You are requested to consolidate the amount for each policy and enter the consolidated amount in 2 row

Q8. I have my Mutual Fund and LIC to be paid In March. How do I enter these investments?
You need to click on Future Payment drop down. (Check for Clients specifics)

Q10. Hard copies of the IPSF?

The Hard copy of IPSF has been sent to your Official mail ID, we request to declare your investments on the same and
submit along with proofs within cutoff date.

Q11. IPSF Hard copies communication sent second time for declaration?
If you have already submitted the IPSF along with proofs, then we request you to ignore the mail sent on the same.

Q12. Wrong Rejection Remarks in IPSF report?

We request you to ignore the rejection remarks, as the entire investments are considered as per the proofs submitted.

Q13. Why the Pre EMI Financial year fields are not enabled on IPSF Link?

Based on Loan sanction date and possession date, the Pre-EMI interest paid fields will be enabled. If any interest paid in
particular Years, the same should be entered in the respective fields

Q14. Let-out property Control total is showing negative values?

Only if you have the negative amount (loss) towards let out, then only the housing loan interest benefit will be considered.
So, the correct value are considered towards interest.

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 IPSF - Investments proofs submission form Continued….

Q15. How to enter the investments details the IPSF is already submitted (submit button grayed out)?

Once the IPSF is submitted this will not be enabled again. However, you may enter all the investments details on the IPSF
manually, and submit the proofs along with it; this may consider for tax computation. Kindly revert for any discrepancy
once the IPSF status is hosted.

Q17. How to de-select the self-occupied details row on the IPSF link?
You are requested to delete all the entries made on the respective sections, and save. Then go to main screen to uncheck the
option.

Q18. Am not able to de-select the Housing Loan option under section selection page please help?
We have made the self-occupied details as zero from the back end. Though self-occupied property is selected in section
selection page, this will not reflect in the final IPSF report

Q19. How to delete the row on the IPSF link?

You are requested to delete all the entries made on the respective row and click on delete button.

Q20. How to declare the PF and VPF details on IPSF?

Any deduction which is deducted through salary by the employer such as PF and VPF will be considered for tax calculation
by default. Hence, these details will not be available on IPSF and there is no need to submit any proofs for this

Q21. How to update the future payment details on IPSF?

You are requested to update the payment status as "Future Payment" on the IPSF and enter the due date on the declaration
page, which gets printed along with IPSF. You are also requested to submit a copy of last year's premium receipts ( Clients
Specifics)

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 IPSF - Investments proofs submission form Continued….

Q22. How to upload the Investments image Actual Proofs ?

 There will be an alert message on the top of the screen [post confirmation of IPSF] where an employee can use the
‘Click Here’ option to upload the copies of signed IPSF along with actual proofs and other annexures.

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