INCOME TAX PROCESS SUMMARY Declaration of Investment Proof Employees are requested to declare their Investment for the financial year 2015 - 2016 in Employee Self Service th on or before 24 April 2015. Procedure to be followed for updating tax saving declarations in Employee Self Service: Login ESS -> click on “My Investment Declaration” tab on the home page -> update your declarations and SAVE. Submission of Investment Proof A. Investment Declaration Module in ESS has been designed in order to provide all necessary details of Investment declaration and also track the same accordingly. All the documentary proofs of Investment are to be entered in “Proof Entry’ given under My Investment Declaration” and need to generate “Proof Submission Form”
IMP NOTE: Investment Proofs received without “Proof Submission Form” will not be accepted under any circumstances. B. After entering the Investment details, print the “Proof Submission Form” from the ESS, which gives full details of Documents submitted with employment number & name. Submit the same along with proof of Investment to the below mentioned address. C. On receipt of the documents, the same would be received & verified by Taxation Team and remarks will be updated under the tab provided as “Proofs Verified” in Investment Proof Submission section. D. Employees are requested to check Proofs Verified within 15 days, whether the proofs submitted are being received & verified or not. If amounts are not updated then query should be put on Helpdesk immediately. Investment Proof Supporting for Tax Exemption Refer the next page for instructions on documents to be submitted for tax saving. User Manuals Refer the detailed user manual updated after instruction on documents, for further help with respect to Investment declaration, Proof submission & Tax computation. Important Dates th
A. Declaration of Investment by 24 April 2015 B. Submission of Investment proofs Starting from 15th Dec 2015 C. Submission of Original Medical Bills by 15th Feb 2016 All the investment Proofs should be sent to: Income Tax Section Cipla Ltd. C Wing, 2nd floor, 289, Belasis Road, Mumbai Central. Mumbai – 400 008 (Super scribe the envelope with “Income Tax Documents”)
Nature of Investment
Section
Previous Employer
House Rent: Employees who have given rent details.
Contribution to the Pension Plan of LIC/ any other Insurer for receiving Pension from the approved Pension Fund
Medical Insurance Premium (e.g. Mediclaim)
Expenditure incurred for Medical Treatment, Training etc. for handicapped dependent
Interest on Repayment of Education Loan taken for Higher Education for Self.
Supporting Proofs required to submit Copy of FORM - 16/ Statement Certifying Earnings and Deductions from previous employer duly signed, which is mandatory.
10(13A)
1. Original Rent Receipt with Revenue stamp for all the months is to be submitted. If there is any change in the rent amount in between the year, then both the receipts has to be submitted. 2. It is mandatory to mention Landlord’s Pan No. on the rent receipt, if the rent amount is more than Rs.8334/p.m. Else HRA Deduction will not be allowed. 3. No need to submit documentary proofs if Rent amount declared does not exceed Rs.3000/-p.m. 4. Form 60 is required when Landlord’s Pan No. is not available. 5. Employee has to make Monthwise Entry in “Proof Entry” though the receipt is Quarterly, Half yearly or Yearly.
80CCC
Copy of Premium receipt for all the premium falling due after 15th Jan, Previous year receipt with declaration saying that the actual premium payment receipt will be submitted on or before 31st March.
80D
80DD
80E
1. Copy of Premium receipt paid during the financial year. 2. Mediclaim premium paid in Cash do not qualify for Income tax exemption. 3. In case premium falls due in Feb or Mar, please attach previous year’s receipt along with declaration saying actual payment receipt will be submitted on or before 31st March. 4. Expenditure on Preventive Health Checkup to the extent of Rs.5000/- . Original bills required to claim the deduction. 5. Maximum amount eligible for individual is Rs.25,000/-, parents – Rs.25000/- and if the parents are Senior Citizen (60 years) is Rs.30,000/-. 1. Proof of expenditure incurred OR a duly signed declaration in writing certifying the actual amount of expenditure incurred AND receipt/ acknowledgment for the amount paid/ deposited into the specified schemes of LIC/ UTI; and 2. Permanent Physical disability certificate from a physician, a surgeon, a psychiatrist, as the case may be working in a Govt. hospital. 3. Maximum Exemption of Rs.75000/= for disability % less than 80% or Rs.125000/- where disability % are 80% or more. Copy of passbook showing the repayment of loan including interest thereon or copy of Certificate issued by the Bank, Financial Institution or an approved Charitable Institution showing the interest and principal separately. Interest paid during the financial year will be allowed as deduction.
Permanent Physical disability
Interest on Housing Loan
Interest on 2nd Housing Loan
Medical Bills
80U
u/s 24
u/s 24
Sec.10
Permanent Physical disability certificate from a physician, a surgeon, an oculist or a psychiatrist, as the case may be working in a Govt. hospital. The certificate should contain the employee’s name. If Disability is less than 80% then Max Exemption Rs.75,000/- If disability is more than 80% then Max exemption Rs.125,000/1. Copy of Provisional Interest certification from Bank / bank payment schedule/ certificate OR a copy of bank passbook stating clearly the amount of principal and interest separately. 2. Date when the loan was borrowed 3. Interest rebate can be claimed only after completion of the construction (completion certificate or possession letter is required in the first year of claim) 4. In Joint Home loan – Declaration of proportion % benefit to be considered for each is required. If taking 100% then declaration required that joint owner is not claiming benefit of the same. House should be occupied. 5. The maximum amount of deduction is Rs.200000/- if the loan is taken after 1st April 1999, and Rs.30000/- if the loan is taken before the said date 6. In case of pre-construction period interest deduction is allowed in 5 equal installments from the year in which the possession of the property i s acquired or the construction of the said property is completed. 7. Copy of occupancy certificate issued by the builder / a self-signed declaration by the employee for claiming the housing loan deduction. 1. Copy of Provisional Interest certification from Bank / bank payment schedule/ certificate OR a copy of bank passbook stating clearly the amount of principal and interest separately. 2. Date when the loan was borrowed 3. Interest rebate can be claimed only after completion of the construction (completion certificate or possession letter is required in the first year of claim) 4. In Joint Home loan – Declaration of proportion % benefit to be considered for each is required. If taking 100% then declaration required that joint owner is not claiming benefit of the same. House should be occupied. 5. 2nd Housing Loan form required with details of 2nd Housing loan for Eg. A. Annual Rent Received, B. Municipal Taxes (If any) C. Repairs ( 30% of A+B ) and Housing Loan Interest (Leased Property)
1. Original Medical bills of the current Financial Year are eligible for exemption. 2. Receipt of Doctor is also valid. 3. Maximum exemption limit is Rs.15000/- or actual amount of medical reimbursed whichever is lower. 4. Xerox copy of the bills will not to be considered.
Leave Travel Allowance
Sec.10
RGES Equity Schemes
Medical for Specific Diseases
80CCG
80DDB
1. LTA deduction can be claimed for 2 journeys within India in a block of 4 calendar years. The current block is Jan 2014 To Dec 2017. The deduction for LTA is limited to the Economy airfare or Air conditioned first class rail fare for the journey. If places are connected by rail. If the place of journey is not connected by rail then first class or deluxe class fare by any means of public transport is considered for exemption. 2. LTA declaration from is compulsory to avail deduction. 3. Approved leave requisition must be on record of HR department. 4. LTA deduction is allowed for employee, his/her spouse, children (max -2 child), parents & siblings who are wholly dependent on the employee. 5. LTA exemption is allowed only for travel within India 6. Original LTA bills & Boarding Pass (Air) required with LTA declaration form.
1. Proofs of amounts invested in the listed shares. 2. Account showing an individual is a first time entrant into stock market and has invested for the first time. 3. Copy of the Demat Account statement showing amounts invested in shares. 4. 50% of the amounts invested qualifies or an exemption, i.e. Maximum up to Rs.25,000/-
1. Expenses actually paid for medical treatment of specified diseases and ailments. 2. Maximum Exemption of Rs.60, 000/= for disability % less than 80% or Rs.80, 000/- where disability % are 80% or more. 3. Form no. 10‐IA (Certified by Neurologist/Pediatric Neurologist/Civil surgeon/Chief Medical Officer)
Deduction under Section 80C
Life Insurance Premium
Contribution to Public Provident Fund
1. Copy of Premium Receipt is mandatory. Late payment interest charged will not be included as premium paid. 2. For the premium falling due after 15th Jan, previous year receipt with declaration saying that the actual premium payment receipt will be submitted on or before 31st March. 3. Premiums can be paid for self, spouse or children. 4. Parents/Sisters /Brothers Insurance payments are not allowed 5. Premium receipts issued by the Other Companies can be considered for qualifications if it specify that the policy is covered under Sec 80C or 80D 6. E-Statement of account or a consolidated premium statement from Life Insurance Company for premiums paid can be accepted however, it should clearly mention that the said policy is covered under Sec 80C. 7. Required All quarters LIC receipts with proof submission form. 1. Copy of PPF Passbook along with the cover page showing name of account holder ( OR) 2. Copy of the Challan duly acknowledged by the Bank 3. Maximum limits for investments in PPF is Rs.150000/- per annum. 4. In case of Individuals – Account Standing in the name of self/spouse/any child (including adult children and married daughter)
Repayment of House Loan (Principal Repayment)
1. If a person fails to make EMI payments, he cannot claim principal deduction. 2. The deduction for principal repayment is allowed only to the extent of the amount of loan taken in the employees own name. 3. Payment towards stamp duty, registration fees and other related expenses are also eligible for deduction
NSC
Copy of the Certificates purchased during the financial year.
ULIP / LIC Mutual Fund
Copy of ULIP statement or Premium receipts
Post Office Savings CDT 80C
Children’s education expenditure (Tuition Fees)
Fixed Deposits
National Pension Scheme
Sukanya Samriddhi Account Scheme
1. The Post Office Savings should be for 5 years 2. Account Passbook or Money deposit slip
Original Receipts of Tuition Fees and Term Fees (No Donations & Development fees, Bus, Text Books, Private Tuitions or Tutorial Fees) paid to any University/College/School or Other Educational Institution in India during current year for a maximum of 2 children.
3. Copy of FD receipt should be submitted. 4. The FD receipt should be stamped stating exemption u/s 80C 5. The FD should be for 5 years 1. To provide social safety net and the facility of pension to individuals and additional deduction of Rs.50, 000 is proposed to be provided for contribution to the New Pension Scheme under Section 80 CD. 2. This will enable India to become a pensioned society instead of a pension less society (if excluding NPS total 80C is Rs.150000 & the amount invested in NPS is Rs.50000/-, then the amount u/s 80C will be restricted to Rs.200000/‐ or less depending on the investments u/s 80C or NPS). 3. U/S 80C = limit up to 50000 over & above Rs.150000/-
1. Investments in Sukanya Samriddhi Scheme are already eligible for deduction under Section 80C. 2. All payments to the beneficiaries including interest payment on deposit will also be fully exempt. 3. U/S 80C limit up to Rs.1,50,000/4. Copy of Sukanya Samriddhi pass book & certificate should be submitted.
Investment Declaration Documentation
Investment Verification module User can declare and fill in the details against each Investment type using the Investment Declaration screen. This screen depicts three columns against each investment types: a.
Declared: In this column employee enters the investment amount which he intends to declare.
b.
Received: This column displays the amount which the employee inserts and produces the proof for.
c.
Verified: This Column shows the amount approved and verified by the approver.
Investment Declaration Documentation
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After filling all the details and amounts against selected Investments sections and components employee needs to save the details using Save tab.
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Employee needs to save proof entry by using Proof Entry tab.
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When user the clicks the proof entry tab it displays the following screen where the employee can
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View the proof details of earlier investments. Here system assigns one unique batch number for the entire proof which the employee is going to send in one lot.
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Here user selects the investment type from the investment drop down and amount and can also put a remark if any.
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When user clicks on Save tab it displays alert message which asks the user to fill in the Courier details which acts as a proof for his declaration.
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To enter courier details for the proof entry, employee clicks on Courier entry button.
Investment Declaration Documentation
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Once employee selects to save the proof details there will appear a pop up asking to enter the courier entry details which is the evidence for proof received.
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Employee can either choose for courier service or drop box for the same. Courier dispatch date should always be greater or equal to batch date.
Investment Declaration Documentation
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After entering the required fields user should save the changes.
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To move to Proof entry screen choose the Back button.
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Once user save the Courier entry details for the batch, system automatically update that information in the Proof entry screen also.
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User can print the proof details which he has sent by clicking on the Print Submission Form button.
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As user clicks on this button, the following screen displays all the batches of the proof details he has entered.
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Then system open the above screen showing the investment proofs he had send with that batch and total amount.
Investment Declaration Documentation
User can print the report showing the verified amount for every investment proof he has send in different batches and which one is verified.
1.
When user clicks on the ‘Proof Verified’ button, system displays below screen showing the verified amount details:
Functionality of HRA Received Module Investment Declaration Documentation
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Using this module employee enters the details of HRA proofs sent by the employee.
Investment Verification Screen for HRA Proof:
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Here user can specify the month for which employee sent the investment proof. Once user saves the data then system update the verified amount of that month in the HRA section of Investment Declaration page.
