INVESTMENT DECLARATION FORM FOR THE FINANCIAL YEAR 2014 - 15

IMPORTANT

1. Please note that investments /payments made during the year April 2014- March
2015 alone will be considered.
2. Please note that investment in Kisan Vikas Patra (KVP) is not eligible for deduction u/s
80C.
3. Donations to Charitable or Religious Trust: Sec.80 G benefit can be claimed only at
the time of filing your Income Tax returns. The employer cannot give the benefit at
the time of deducting Salary TDS.
4. Section 80 DDB (Deduction for Medical Treatment): Section 80 DDB benefit can be
claimed only at the time of filing your Income Tax returns. The employer cannot give the
benefit at the time of deducting Salary TDS.
5. Interest paid on Housing Property Loan: The construction of the house should be
completed and the house should be occupied (either by self or let out) within the
financial year in order to get the benefit under Sec.24.
6. In case the investment declaration forms are not received by the due date, TDS will
be deducted based on the assumption that there is no investment.

Relevant provisions of the Income Tax Act, 1961 with reference to Salary Income

DEDUCTIONS AVAILABLE UNDER INCOME TAX ACT FOR SALARIED EMPLOYEES

1. HRA Exemption u/s 10(13A):

An employee who owns a house in his/her name is not eligible to claim this exemption.

An employee who does not pay rent for his/her accommodation is not eligible to claim HRA
exemption. Exemption under this section is allowed for those employees who pay rent for
their accommodation. The exemption is restricted to a minimum of:

i. Actual HRA received

ii. Actual Rent paid Less 10% of the salary
iii. 50% of the salary if the rented house is situated at Mumbai, Chennai, Kolkata and
Delhi and 40% of the salary in any other case.

HRA received, which is in excess of the above limits, is taxable.

Salary for this purpose means, Basic, DA, ADA, FDA, VDA.
 Documents required to avail HRA Deduction

Copy of House Rental Agreement along with original rent

receipts or
Rent receipts given by Landlord

Proof Of Rent Paid Should Give Details Of:

Name and address of landlord

Address of rented premises for which rent
paid
Period for which rent paid & the amount

Note:

If the Annual Rent paid by the employee exceeds Rs.1,00,000 per annum, it is mandatory
for the employee to report the PAN Number of the Landlord.

In case the landlord does not have a PAN Number, a declaration to this effect from the
Landlord, along with the Complete Name and Address of the Landlord should be filed
by the employee. (Declaration in Form 60)

2. Interest paid on Housing Loan for self-occupied property u/s 24

Interest paid on housing loan can be set off against salary income. To avail this
benefit, the house should not be vacant throughout the year.
House property should be in the name of the employee who claims this deduction.
If the capital for acquisition/construction of house is borrowed before 01-04-1999
the
salary income can be set off against interest paid subject to maximum of `30,000
per
annum.
If the capital for acquisition/construction of house is borrowed on or after 01-04-1999
and the construction/purchase is completed within 3 years before end of Financial
year in which loan is taken, the salary income can be set off against interest paid
subject to maximum of 1,50,000 p.a.
If the loan taken for reconstruction or repairs or renewal of existing house, then the
maximum deduction can be allowed only to the extent of `30,000 per annum.

3. Interest paid on housing loan for let out property u/s 24

Rent received from let out property should be disclosed as an

income. From the above income following deductions can be

claimed.

Property tax paid during the year for the let out property.
30% of Net Annual Value (Rental Income less Property tax) can be claimed for
repairs
and maintenance of the house irrespective of the expenses incurred.
Interest payable on housing loan for let out property can be claimed as deduction
without any upper limit.

Employer has to set off the loss from house property with the salary income
while calculating the tax liability of the employee.
 Documents required for availing Interest Deduction:

Statement/Certificate from Financial Institution / Bank for the interest payable on

Housing loan giving the breakup of interest and principle repayment and the date of
loan sanction.
Duly Signed Declaration Form with details of House Property whether it is self-occupied
or let out.

Completion certificate of the House Property.

In case of Joint Loan (Joint Names in Interest certificate), Joint declaration to be provided stating
amount of claim as ownership document is not requested for. Most Important

4. Deductions allowed under Section 80 C:

a. Payment of Life Insurance Premiums for Self/Spouse/Children.
b. Contribution to Public Provident Fund for Self/Spouse/Children.
c. Contribution to Unit Trust Of India in the name of Self.
d. Investments in National Savings Certificate only in the name of Self.
e. Interest accrued on National Savings Certificate (Copy of NSC Certificates of
the previous years have to be submitted to get rebate on NSC accrued Interest).
f. Principal repayment on Housing Loan and Stamp Duty / Registration Charges paid
for the House property during the first year of investment.
g. Contribution (including Voluntary Cont.) to Employee Provident Fund.
h. Investments in National Savings Scheme (NSS).
i. Tax Saving Bonds / Infrastructure Bonds.
j. Investments in Tax saving Mutual Fund or Equity Linked Saving Scheme / Systematic
Investment
Plan (SIP).

k. Child Education Expenditure.

l. Tax Saving Fixed Deposits (With Minimum Lock in period of 5 Years).
m. Investment in Post Office Time Deposits (With Minimum Lock in period of 5 Years).
n. Senior Citizen Saving Scheme 2004
o. Post Office Time Deposit Account

Maximum investments under the above investment schemes are

restricted to `1,00,000 per year.

Documents required to claim rebate:

Copy of Proof of Investment made during the current financial year.

5. Investment in Pension Scheme of LIC or any other insurer (eg Jeevan

Suraksha of LIC or any other Pension Plan) u/s 80 CCC

Premium paid for pension scheme is allowed as deduction from Total Income.

Documents required:

Copy of current year premium receipt

6. Investment in pension scheme created by Government of India u/s 80CCD

Note:
The maximum investment limit allowed under the above sections 80C,
80CCC, 80CCD is 1,00,000 per year.
 7. Rajiv Gandhi Equity Saving Scheme (RGESS)

u/s 80 CG

Salient features of this scheme:

Deduction is available to a resident individual, if his gross total income does not
exceed 12 lakhs
The assesse is a new retail investor
The investment is locked-in for a period of 3 years

The maximum Investment permissible under the Scheme is Rs. 50,000 and the investor
would get a 50% deduction of the amount invested from the taxable income for that year.

The amount of deduction is 50% of amount invested in equity shares. However, the
amount of deduction under this section cannot be more than Rs.25000.

8. Mediclaim Insurance u/s 80 D

Medical Insurance premium is exempt up to 15,000/- per year for self, spouse &
dependent children. An additional 15,000/- is exempt towards premium for parents
(even if they are not dependent). If the parent(s) are above 60 years of age, an
extra 5,000/- can be claimed.

Note:
Preventive Health Checkup for self, spouse, dependent children or parents are
also allowed to the extent of Rs.5,000/- per year (which is part of overall above
limits).

Documents required:

Current Year Receipt for payment of mediclaim insurance premium.

9. Deduction in respect of maintenance, including medical treatment, of a

disabled dependant u/s 80 DD

The amount of deduction is

50,000 to a person with disability (above 40% and less than 80%), and
1,00,000 to a person with severe disability (Above 80%)

Documents required:

Form 10IA & self declaration for the amount of expenses incurred for this specific cause.
 10. Deduction in respect of person with disability u/s 80U

Deduction is allowed to a person suffering from a permanent physical disability or mental

retardation under sec 80U. The amount of deduction is:

50,000 to a person with disability (above 40% and less than 80%)
1,00,000 to a person with severe disability (Above 80%)

Documents required:

Form 10IA

11. Repayment of Education Loan u/s 80E

The total amount of interest paid for self and dependents towards education loan taken
for higher education extended to all courses pursued after Senior Secondary
Examination from any school, board or university recognised by the Central Government or
State Government or local authority or by any other authority authorised by the Central
Government or State Government or local authority to do so will be allowed as deduction
over a period of 8 years or until the interest is paid by the assesse in full, whichever is
earlier.

Documents Required:

Proof for repayment of educational loan for the amount claimed

Introduction of new section 80EE:

Additional deduction of interest on housing loan of up to Rs.100000 to first time home

buyers

Section 80EE is proposed to be enacted so as to allow to an individual, a deduction of up to Rs.100000

in respect of loan taken from a financial institution (banking company or housing finance company) of
up to Rs.2500000 between 1st April, 2013 and 31st March, 2014 to acquire a residential property
valued up to Rs.4000000, provided assesse does not own any residential house property as on the
date of sanction of loan.

It is also proposed that if the deduction entire of Rs.100000 as above could not be claimed
in FY 2013-14, then the balance can be claimed in FY 2014-15.

It may be noted that the above deduction is over and above the existing entitlement of housing loan
interest deduction of Rs.150000. However, while the existing deduction of up to Rs.150000 can be of
interest on housing loan taken from anyone, the aforesaid deduction can be allowed only on housing
loan taken from financial institution.

The following conditions are to be satisfied to claim deduction under section 80EE:-

1. the loan is sanctioned by the financial institution during the period beginning on 1st April, 2013 and
ending on 31st March, 2014;

2. the amount of loan sanctioned for acquisition of the residential house property does not exceed
twenty-five lakh rupees;

3. the value of the residential house property does not exceed forty lakh rupees;

4. The assessee does not own any residential house property on the date of sanction of the loan.
Introduction of new section 87A:

Rebate of Rs.2000 for individuals having total income up to Rs.500000

(87A) An assessee, being an individual resident in India, whose total income does not exceed
Rs.500000, the rebate shall be equal to the amount of income tax payable on the total income for any
assessment year or an amount of Rs.2000, whichever is less.

Consequently any individual having income up to Rs.220000 will not be required to pay any tax and
every individual having total income above Rs.220000 but not exceeding Rs.500000 shall get a tax
relief of Rs.2000.

Previous Employment Details

Previous Employer Income:

1. Income period should be after 1st April '14
2. Form 16 or a statement / certificate showing the computation of tax and
the income details with breakup
3. Only salary after section 10 alone should be taken

Previous Employer PT
Profession Tax deducted by Previous employer for the year 2014-15 to be taken

Tax Deducted by Previous Employer:

Tax Deducted and remitted by Previous Employer alone should be taken for
deduction
It should be for the period April '14 - March '15
The following are the amendments made in the Finance Bill, 2014 for Salaried Class
Assessees:

The Revised Tax Slabs are:

Income Slab Rates of Income Tax

Up to `2,00,000 NIL
From `2,00,001 - `5,00,000 10% of Income over `2,00,000
From `5,00,001 - `10,00,000 `30,000 + 20% of Income over `5,00,000
Above `10,00,000 `1,30,000 + 30% of Income over `10,00,000

In the case of Women Assesses, not being senior citizen, the Income Tax Slab is:

Income Slab Rates of Income Tax

Upto `2,00,000 NIL
From `2,00,001 - `5,00,000 10% of Income over `2,00,000
From `5,00,001 - `10,00,000 `30000 + 20% of Income over `5,00,000
Above `10,00,000 `1,30,000 + 30% of Income over `10,00,000

In the case of Senior Citizen who is of the age of sixty years or more but less than
eighty years, the Income Tax Slab is:

Income Slab Rates of Income Tax

Upto `2,50,000 NIL
From `2,50,001 - `5,00,000 10% of Income over `2,50,000
From `5,00,001 - `10,00,000 `25000 + 20% of Income over `5,00,000
Above `10,00,000 `1,25,000 + 30% of Income over `10,00,000

In the case of Senior Citizen who is of the age of eighty years or more, the Income
Tax Slab is

Income Slab Rates of Income Tax

Upto `5,00,000 NIL
From `5,00,001 - `10,00,000 20% of Income over `5,00,000
Above `10,00,000 `1,00,000 + 30% of Income over `8,00,000

Surcharge @ 10% on tax payable has been introduced with effective from FY 2014-15, for the total
income exceeding Rs.1 crore .
Education Cess @ 3% continues on the Total Tax Due