Guidelines on actual tax declaration under various sections

It is two way steps:

(i) Fill the data in IT declaration under ESS (Refer Annexure-A of Employee Tax

Guide)
(ii) Download the Form 12BB (Format is attached as Annexure B of Employee Tax

Guide). Please fill this form, take printout, sign it, attach tax investment proof, rent

receipts, rent agreement, PAN copy of landlord/lender etc and put it in the claim box

for sending it to ABPO

Important points:

1. House Rent Allowance:

Rent Receipts:

(a) Rent amounts need to be punched for 12 months. Rent receipt should be submitted in

original and shall show following details:

Name of the tenant, i.e. employees name

Address of the rented house
Month for which the rent has been paid
Amount of rent paid
Name of the landlord
Revenue stamp affixed and duly signed by the landlord on receipts greater than

Rs. 5,000/-
All original rent receipts should be enclosed along with Form 12BB; however, if rent

receipts are not available for (January 2017 to March 2017) months, the same may be

furnished by 05th March 2017 to ABPO. In case of non-submission of documents by

March 5, 2017, required TDS will be deducted in the month of March, for which no

reminders will be sent.

(b) In case, rent is more than Rs. 1,00,000/- per annum, two additional documents will be

required to submit along with Form 12BB

PAN Copy of the Landlord and

Lease agreement Copy
Clarification on PAN:

Where rent actually paid during the financial year (Apr-Mar) is less than Rs. 1 Lac
in aggregate, PAN copy of Landlord will not be required.

If employee pays rent to more than one landlord for the same property which
exceeds Rs. 1 Lac per annum in aggregate then PAN copy of all landlord(s) will
be required even if rent paid to each landlord is less than Rs. 1 Lac per
annum.

If employee pays rent for more than one property during different period of the
year to various landlords and rent paid to each landlord is less than Rs.1 Lac per
annum however exceeds Rs. 1 Lac per annum in aggregate then PAN copy of
all landlord(s) will be required even if rent paid to each property is less than
Rs. 1 Lac per annum.

Further, employees claiming HRA exemption as well as Loss from House

Property for the property (ies) situated in the same city are required to submit
the copy of the PAN Card of the Landlord. This is required even if rent per
annum is less than Rs. 1 Lac.

(c) Rent receipt with incomplete information will not be considered for deduction purpose.

2. Deduction of interest on borrowing (Repayment of Housing Loan/Interest):

You will have to submit the following documents to claim the benefit of interest on Housing

Loan:

3. In case of self occupied property, to claim of deduction of Interest on borrowed capital,

the acquisition or construction of the house should be completed within 5 years from the

end of the FY in which the capital was borrowed

 4. Bank certificate for the current financial year (till date) and for balance period provide the

loan repayment schedule with breakup of principle and interest amount.

5. Employee is mandatory require to submit the name, address and PAN of the lender
6. In case of New Property submit proof of ownership of the property (Possession Letter/

Completion Certificate/ Sale Deed/ House Tax receipts). Benefit of interest on loan taken

to construct/ purchase of house can only be given in case the possession/construction of

the house property is fully completed. On under construction property this benefit is not

available.
7. Statement showing calculation of income/loss from house property (Format is attached

as Annexure C in Employee Tax Guide).

8. Please note that if the loan is in joint name, then the ownership of the house property

should also be in the name of the employee - which can be partly or fully.
9. Please attach declaration form from the joint owner stating that he/she shall not be

claiming any tax benefit from the house or shall be claiming his/her share, as the case

may be. Format is attached as Annexure D in Employee Tax Guide).

3. Deduction under Chapter VI-A

(i) LIC Premium:

Please submit photocopies of all premium receipts paid from April '16 till date; the same shall be

self-attested by the employee. In case any premium is due after 13 th January, 2017, employees

are humbly advised to prepay the same and provide receipt. However, if it is not possible, then

provide us the declaration stating that the premium will be paid latest by March 5, 2017 and

enclose the premium paid receipt of last year; once paid the receipts should be furnished by

05th March 2017 to ABPO. Declaration for fresh policy will not be considered. In case of
non-submission of documents by March 5, 2017, required TDS will be deducted in the month of

March 2017, for which no reminders will be sent.

(ii) Employee Provident Fund (EPF)

No document required; ESS system will take care of the same.

(iii) Public Provident Fund (PPF)/National Pension Scheme

Self-attested photocopy of deposited Challan or PPF/NPS Passbook in the current financial

year (if any). No declaration will be considered for future deposits, if any.

(iii) NSC

Please submit photocopies of all NSC certificates purchased in the current financial year (if

any). No declaration will be considered for future deposits, if any.

(iv) ULIP/Mutual Funds

Please submit photocopies of all premium receipts & the certificates of unit purchased in the

current financial year (if any). No declaration will be considered for future deposits, if any.

(v) Medical Insurance:

(a) Please submit photocopies of all premium receipts paid from April '16 till date; the same shall

be self-attested by the employee.

(b) In case any premium is due after 13 th January, 2017, then provide us the declaration stating

that the premium will be paid latest by March 5, 2017 and enclose the premium paid receipt of

last year. Declaration for fresh policy will not be considered. In case of non-submission of

documents by March 5, 2017, required TDS will be deducted in the month of March 2016, for

which no reminder will be sent.

(c) Please submit your preventive health check documents along with doctors prescription for

FY 2016-17.

(vi) Children Education Fees

Please submit photocopies of receipts of Tuition Fees paid to the recognized school. Tax

benefit is available for Tuition Fee only and not for any other payment viz. Computer Fee,

Library Fee, Donation, etc. No declaration will be considered for future deposits, if any.

(vii). Fixed Deposit

Please submit photocopy of fixed deposit made for 5 years or more, purchased in the current

financial year (if any). No declaration will be considered for future deposits, if any.

(Viii) Interest on Education Loan for full time course:

Bank certificate for the current financial year (till date) and for balance period provide the loan

repayment schedule with breakup of principle and interest amount.

(ix) Deduction u/s 80EE (Purchase of residential property during FY 16-17)

New deduction has been introduced in FY 2016-17 wherein interest up to 50,000 (over and

above 150,000) will be available as a deduction to a resident individuals for purchase of

residential property subject to such conditions as laid down in Section 80EE. To claim the

deduction, employee is required to submit following documents along with Form 12BB:

Sanction letter of Loan from Bank

Sale Deed to demonstrate that value of residential property should not exceed Rs. 50

lakh;
 Self declaration that employee does not have any residential property on the date of

sanction of the loan

(4) Salary from Previous Employer:

Employee who has joined the company during the financial year 2016-17 i.e. after April 01,2016

also needs to fill and submit form 12B (Format is attached as Annexure E in Employee Tax

Guide) along with certificate in original from previous employer. The said certificate must have

the following details:

Employee Name; and

PAN; and
Period of employment during FY 15-16; and
Taxable salary before deduction under chapter VIA of the IT Act; and
Deductions given under chapter VIA of the IT Act; and
Net Taxable Salary ; and
Month wise TDS deducted and deposited (The same shall be supported by the 26AS

Statement)

Or alternatively Form 16 will be accepted if issued by the previous employer.

Please consider the same carefully and submit necessary documents in timely manner to avoid

higher deduction of Tax. Please note that TDS once deducted cannot be refunded by the

Company; if required the same can be claimed by the employee from the Income Tax

department while filing the annual tax return.