Investment
Validation Guidelines
FY 2024-25
Overview
The following generic guidelines
are to be followed by all individuals
while submitting the investment
proof documents on the Employee
Self Service Portal. The below
guidelines are derived based on
Income Tax Act.
Make sure you check the “Points to
consider” icon while making
submissions on the Employee Self
Service (ESS) portal. There may be
additional requirements as per your
company’s guideline and policy.
House Rent Allowance
Allowed Disallowed
Landlord Name, PAN or Aadhaar number, signature is
mandatory if total rent exceeds INR 1 lakh/annum, No declaration is allowed
irrespective of the number of landlords.
Rent receipt signed by landlord should be provided. Rent receipt without landlord signature
Note:
If the rent amount paid by the employee is > INR10,000 per month, below documents must be submitted.
✓ Rent is paid in cash to the owner.
2 Rental Agreement with PAN number of the landlord / House Owner.
Rent receipt with the revenue stamp for Oct to Dec 2024
✓ Rent is paid via Bank transfer.
Rental Agreement with PAN number of the landlord / House Owner.
Rent receipt and bank statement for Oct to Dec 2024
If the rent amount paid by the employee is < INR10,000 per month, below documents must be submitted.
✓ Rent is paid in cash to the owner.
Rent receipt with the revenue stamp from Apr 2023 to Dec 2023 along with the PAN
number of the owner.
✓ Rent is paid via Bank transfer.
Rent receipt and bank statement from Apr 2023 to Dec 2023
Interest on Housing Loan & Principal
Allowed Disallowed
Benefit under section 24 is available if you are the owner/ Bank statement
co - owner of the property declared.
Provisional certificate with breakup of principal and interest Co-guarantor / co-borrower
For, pre-construction interest, all previous years’ Stamp duty & registration charges for
certificates are to be furnished. vacant land
Municipal tax receipt should be furnished. Land loan not allowed
Stamp duty & registration charges will be allowed irrespective
of whether the possession has been received or not.
Losses which are brought forward can only be claimed
Brought forward loss - ITR (2018-19) is mandatory and such against income from house property. The employee can
losses can be claimed only against income from house property. also go ahead and claim the benefit while filing the ITR.
Employees should declare the % value, in case of Joint Loan (Joint
Names in Interest certificate), Joint declaration to be provided
stating amount of claim.
Previous Employment Income
Allowed Disallowed
Form 16/ Form 12B/ FNF tax computation sheet is
Monthly pay slip/ tax slip
mandatory with company seal and sign.
In case of soft copy, document should contain that it’s a
computer-generated document and hence signature Self-computation
is not required.
Please Note: It is seen that Form 16 for previous year is submitted in many cases by employees. Kindly check the date
and year before submitting the same.
Section 80C
Maximum Exemption (Rs. 1.5 Lakh)
National Savings Scheme (NSC)
Allowed Disallowed
Certificate should pertain to the current FY Projections
NSC passbook will be allowable Previous year’s certificate
NSC should be mentioned on the front page of passbook NSC on dependents name is not allowed
Life Insurance Corporation (LIC)
Allowed Disallowed
Investments in the name of self, spouse & Investments in the name of dependents
children are allowed is not allowed
Copy of premium paid receipt Bond, late-fee & bank statement
Projection - Last year premium paid receipt is mandatory
ELSS/ Mutual Funds (Tax Saving)/ ULIP
Allowed Disallowed
Copy of purchase SIP receipt Investments in the name of dependents
is not allowed
Investment in the name of self Consolidated statement
Equity-based mutual funds are only allowable.
Projection - Last year SIP receipt is mandatory
Public Provident Fund (PPF)
Allowed Disallowed
PPF Passbook along with Bank Statement Projections
PPF should be mentioned in the front page of passbook Bank statement
Counterfoil with date & seal and PPF checkbox
should be ticked
Investment in the name of self, spouse & children
Children Education Expenses
Allowed Disallowed
Tuition/ Term/ Admin/ Annual fee Projections
Playschool/ Kindergarten/ Montessori Bank statement/ Cheque
Pre-printed bank challan All other fee
Any project or extra-curricular activity
Annual certificate
payment, tuition, or coaching classes fee
Post Office Time Deposit
Allowed Disallowed
Post office and Recurring deposit term of 5 years is
5 years lock-in period to be evident eligible for tax deduction under Section 80C. Other
tax saving fixed deposits made in banks must have a
lock-in period for 5 years.
Recurring deposit other than that made under
Passbook
post office
Investment in the name of self Investment in the name of Spouse / Children &
Parents
NSCAI Only interest amount will be taken to other income;
same will be exempted under 80 C
Allowed Disallowed
Investments in the name of dependents
Previous year’s certificate
are not allowed
NSC passbook
NSC should be mentioned on the front page of passbook
Sukanya Samriddhi Yojana
Allowed Disallowed
SSY passbook along with bank statement Projections are not allowed
SSY should be mentioned in the front page of passbook Bank statement
Counterfoil with date & seal and SSY checkbox
should be ticked
Section 80 D – Mediclaim
Mediclaim
Allowed Disallowed
Medical insurance premium receipts in the name of self,
Previous year’s certificate
spouse, children & parents
Age should be mentioned for parents, if claimed. Corporate insurance
Preventive health check-up or master health check-up
marked in receipts restricted to Rs 5000 only (for the Bank statement
complete family, including parents)
Payment should be only in online mode. Cash mode
Medical/ admission bills
is not allowed
Note: Medical bills are allowed only if the parents or self
are senior citizens and have no medical insurance policy in
their name.
Important: In case a lumpsum premium is paid for more than
one year, the employee can claim the premium value on
yearly basis.
For example: Mr. A paid Rs. 50,000 premium for 5 years,
then he can claim Rs 10,000 each for the next 5 years
based on the document submitted.
Note: GST paid on premium is allowed.
Section 80 E – Education Loan
Allowed Disallowed
Provisional certificate with breakup of principal and interest Bank statement
Document in the name of self, spouse & children Principal amount not allowed
The payment period is 8 years from the year in which the first
installment was paid.
Section 80 EE – Home Loan Deduction
(Additional Deduction for Self-occupied)
Allowed Disallowed
Provisional certificate with breakup of principal and interest Bank statement
Document in the name of self
Note: Possession is not required; thus, under-construction
houses can also be claimed (irrespective let-out or
self-occupied)
Please note: The claim is allowed only if the employee has paid the interest. This is not a standard deduction.
Please verify section 24 and the total interest paid before giving the claim.
Section 80 EEA – Deduction for Interest Paid on
Home Loan (Additional Deduction for Self-occupied)
Allowed Disallowed
Provisional certificate with the breakup of
Bank statement
principal and interest
Document in the name of self
Note: Possession is not required; under-construction houses
can also be claimed (irrespective let-out or self-occupied).
Please note: The claim is allowed only if the employee has paid the interest. This is not a standard deduction.
Please verify section 24 and the total interest paid before giving the claim.
Section 80 EEB – Deduction in respect of Interest
paid on Electric Vehicle Loan
Allowed Disallowed
Provisional certificate with break-up of principal and interest Bank statement
Document in the name of self Must not be in name of spouse or minor
Copy of RC book & driving license
Both 2- & 4-wheeler
Section 80DD and 80U
Section 80 DD/ 80U - Disability
Allowed Disallowed
Previous year’s certificate is not allowable for
Disability percentage should be mentioned in the certificate.
temporary disability
Current FY certificate is required for temporary
disability cases.
Form 10-IA should be certified by medical practitioner,
doctor registration no. or seal
For dependent, an affidavit must be submitted stating that
the said person is wholly dependent on the person.
Section 80CCD (1) and 80CCD (1B)
Allowed Disallowed
PRAN and investment details of the employee with copy of
Tier II contribution
premium paid receipt
Atal Pension Yojana is eligible to be claimed under this section
The individual contribution can be claimed under 80CCD (1) Bank Statement/Cheque
and / or 80CCD(1B)
TIER-I is allowed only
Note: Any payroll contribution is already considered in the payroll engine so that need not be shown separately.
Jeevan (Pension Plan) Maximum Exemption
(1.5 Lakh) under 80CCC
Allowed Disallowed
Document in the name of self Document in the name of dependents
Copy of premium paid receipt Bond, late fee & bank statement
Projection - Last year’s premium paid receipt is mandatory
Thank you
