“Maximize Tax Savings AY 2023-24: Essential Documentation for Salary Deductions – A concise guide to documents required for claiming deductions.”
Given below are the brief guidelines/ indicative documents to be provided by the employee to the employer for AY 2023-24.
| Section | Nature of Deduction | Maximum Amt | Documents to be provided |
| Section 80C | Term Deposit/ Fixed Deposit with Scheduled Bank for not less than 5 years as per scheme notified by Central Government | Rs.1,50,000 | Supporting document is compulsory. |
| Section 80C | Housing Loan Repayment (Principal)
(Proof is Compulsory) |
Rs.1,50,000 | Certificate from Financial Institution indicating Principal to be recovered from April 2022 to March 2023. The certificate should also contain the PAN of the Financial Institution & date of commencement of the Loan. |
| Section 80C | Sukanya Samriddhi Scheme | Rs.1,50,000 | Supporting document is compulsory. |
| Section 80CCD | National Pension Scheme (“NPS”) (Tier 1 A/c)
(Contribution to TIER 1 Account is only eligible for exemption). |
Employee 80CCD(1B) – Rs. 50,000
Employee 80CCD (1)-Rs.1,50,000 Employer 80CCD (2) – 10% of Basic Salary |
Supporting document is compulsory.
Supporting document is compulsory. Supporting document is compulsory. |
| Section 80D | Mediclaim Premium
(The insurer should be the employee to avail and if not, he/she should furnish a declaration that the premium is paid by him/her from his/her Bank Account. (Payment of Premium for Preventive Health Check should not be paid by cash and should be paid by cheque/ digital transfer from bank account). Preventive Health Check-up. Introduced in F.Y. 2015-16
|
Up to Rs. 25,000/- (for Self, Spouse & Dependent Children).
Additional up to Rs. 25,000 for dependent parents below 60 years Additional up to Rs.50,000/- (For dependent parents above 60 years – Senior Citizen. Rs.5,000 is considered for self, Spouse & Children in an overall limit of Rs.25,000. Rs.5,000 is considered for dependent Parents below 60 Years with an overall limit of Rs.25,000. Rs.5,000 is considered for dependent parents above 60 Years with an overall limit of Rs.50,000. For Parents above 80 Years, medical expenses up to Rs.50,000 is allowed if no coverage under Mediclaim is made. |
Supporting document is compulsory.
Supporting document is compulsory. Supporting document is compulsory. Supporting document is compulsory. Supporting document is compulsory. Supporting document is compulsory. Supporting document is compulsory. |
| Section 80DD | Expenses on Handicapped Dependent/Deposit in Specified Institution | Rs. 75,000/-
If the disability is in the range of 40% to 80% Rs.1,25,000/- If disability exceeds 80% |
Supporting document is compulsory. |
| Section 80DDB | Estimated expenses for treatment of Specified Diseases [AIDS, Cancer, Thalassaemia, Hemophilia, Chronic Renal Failure, Chronic Neurological Diseases] | Rs. 40,000/-
Up to the Age of 60 Years. Rs.1,00,000/- Age above 60 years. |
Supporting document is compulsory. |
| 80E | Interest on Education Loan availed from Approved Charitable Institutions & Financial Institutions (For Self, Spouse & Children) for Higher Education in India & Abroad.
(Proof is Compulsory) |
No Limit on Interest Paid on this loan. | Supporting document is compulsory.
Certificate for Admission at Education Institute. Certificate from Approved Charitable / Financial Institution specifying Principal & Interest paid from April 2022 to December 2022 and to be paid from January 2023 to March 2023 (FY 2022-23). The date of Commencement of the Loan and the PAN of the Financial Institution is MUST. Other Documents, if any. The deduction is available for a maximum period of 8 years, (beginning from the year in which the interest starts getting repaid) or till the entire interest is repaid, whichever is earlier. |
| 80EE | Deductions on Home Loan Interest for First-Time Homeowners –
The loan is taken to buy a house during FY 2016-17. (Proof is Compulsory) |
Towards Interest of Rs. 50,000 p.a. + Interest of Rs. 2 Lacs paid U/s.24.
Property value up to Rs.50 Lacs, Loan was sanctioned below Rs.35 Lacs and no residential property was owned. |
Supporting document is compulsory.
Document covering approval of Loan during 1st April 2016 to 31st March 2017. Certificate from Financial Institution specifying Interest to be recovered from April 2022 to March 2023 (FY 2022-23). PAN of the Financial Institution & date of repayment of interest is MUST on the Certificate. Declaration having no other owned house & non-availing of rebate in any other section in respect of this interest. |
| 80U | Personal Disability (Self) | Rs. 75,000/-
If the disability is within the range of 40% to 80% Rs.1,25,000/- If the disability is more than 80% |
Supporting document is compulsory. |
| 80TTA | Interest received on deposits (not being time deposits) in Savings Accounts of Banks, Co-Operative Banks, and post offices. | Rs. 10,000 | Supporting document is compulsory. |
| 10(13A) | House Rent Allowance (“HRA”) Exemption
(Proof is Compulsory) |
– | Metro or Non-Metro is to be specified in the Investment Declaration on basis of the address of the rented property.
Copy of Lease Rent Agreement. If Lease Rent Agreement is not available, then a copy of the declaration by the Landlord in the appropriate format along with uploading proofs of ownership of the Landlord for rented premises such as Property Tax Receipt or Latest Electricity Bill or Share Certificate in case of Co-operative Housing Society with latest maintenance receipt or any other latest payments made to statutory authorities. Copy of the PAN of the Landlord is compulsory on Lease Agreement OR declaration in appropriate format if the Lease Agreement is not provided/available. A scanned copy of PAN is required to upload. PAN details are a must where rent is above Rs.8,333 per month (Rs.1,00,000/- per annum). Rent receipts are to be maintained and provided in January 2023. |
| 24 | Loss from Housing Property
– Interest on Housing Loan. (Proof is Compulsory) SELF OCCUPIED – (EITHER FOR ONE HOUSE OR FOR TWO HOUSES, BOTH BEING SELF-OCCUPIED / VACANT) LOSS ON LET OUT (GIVEN ON RENT) HOUSE GAIN ON LET OUT (GIVEN ON RENT) HOUSE |
Rs.2,00,000/- if loan availed on or after 1st April 1999
Rs. 30,000 if possession is not done within 5 years of the loan taken. (or loan taken for Repairs/ Renewal) Rs.30,000 p.a. if loans are availed before 1st April 1999. Rs.2 Lacs Per AnnRs. 2 Lacs Per Annum |
Certificate from Financial Institution specifying Interest to be recovered during April 2022 to March 2023 for one house or for two houses, both being self-occupied / vacant. PAN of the Financial Institutions & date of commencement of Loans is MUST on the Certificate.
Possession/Construction completion certificate is a must for availing the relief. Details like the date of the loan taken and the Date of Possession in the appropriate format shall be submitted. If the House for which the loan has been availed is let out, then the Computation of Loss (if any) from the House Property is to be updated on Investment Declaration. Certificate from Financial Institution specifying Interest to be recovered from April 2022 to March 2023. PAN of the Financial Institution & date of commencement of Loan is MUST on the Certificate Details like the date of loan taken, Date of Possession with a certificate of Possession, and other details shall be submitted in the appropriate format. If the House for which the loan has been availed is let out then the Computation of Gain/Profit (if any) from House Property is to be updated in Investment Declaration. Certificate from Financial Institution specifying Interest paid from April 2022 to December 2022 and to be paid from January 2023 to March 2023 (FY 2022-23). PAN of the Financial Institution & date of commencement of the Loan is MUST on the Certificate. Details like the date of loan taken, Date of Possession with a certificate of Possession, and other details shall be submitted in the appropriate format. Details of additional income from the housing shall be submitted in the appropriate format. |
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Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement.
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