YOURHANDBOOKTOINVESTMENTDECLARATION

CLEARTAX.IN

EASIESTWAYTOE-FILEYOURINCOMETAXRETURNS!
FOR PRIVATE CIRCULATION ONLY

Tableofcontents

S.no. Particulars Pageno.

1 Introduction 2
2 TaxSavingInvestmentstoconsider 2
3 FAQs 3
4. Howtodeclarehomeloandetailstoclaimtaxbenefitsthroughemployer 4

5. Exampletaxoutgowithandwithoutdeclaration 6
6. AnalysisofTaxSavingProducts 9
7. QuickreferencetoSection80Deductions 10

www.clearTax.in

1
FOR PRIVATE CIRCULATION ONLY

1. Introduction
Assoonasthenewfinancialyearbegins,employersstartrequestingforinvestmentdeclarationfromemployees.Basisyourdeclarationyour
projectedtaxgooutfortheyeariscalculatedandyourmonthlypayisadjusted.
Atthisstage,actualproofsarenotrequired.Onlyinformationisrequiredaboutdeductionsandexemptionsthatyouwanttoclaim.

2. TaxSavingInvestmentstoconsiderforFY2017-18

Nature Whattodeclare Maximumtaxbenefitavailable

ToclaimHRA MonthlyRent,LandlordsPAN(where CheckfromHRAcalculatorhere.

theaggregaterentpaidduringthe
previousyearexceedsINR1lakh)

Toclaim80Cdeductions PPFinvestments,ELSSpurchases,Life Rs1,50,000

InsurancePremium,NPS,School
Tuitionfees,SukanyaSamridhi
accountdeposits,NSCpurchases,
repaymentofhomeloanprincipal,
EmployeesEPFcontribution(Seefull
listhere)

Toclaim80Ddeduction MedicalInsurancepremium Rs25,000forself,spouse,childrenand

Rs25,000forparents(Rs30000ifseniorcitizens)

HomeloanTaxbenefit InterestportionofEMIforthefinancial Rs2lakhsforself-occupiedpropertyorrented

year property(readindetailhere)

InterestportionofEMI(80EE) Rs50,000

www.clearTax.in

2
FOR PRIVATE CIRCULATION ONLY

NPStaxbenefitSection80CCD(1B) NPSinvestmentfortheyear 50,000

TaxbenefitonEducationLoan80E Interestpayoutfortheyear Nomonetarylimit

3. FAQs

Whydoesmyemployerwanttoknowmyinvestmentdetails?
Theemployerneedsthisinformationtocalculateyourannualtaxesandadjustyourmonthlysalaryaccordingly.

HowdoIbenefitfromthisdeclaration?
Ifyoudeclareyourtaxsavinginvestments,yourinhandsalarywillbehigher,asitwillincludeeffectofdeductions.Youcanmakeactual
investmentsanytimeduringtheyear.
Dospendtimeplanningyourinvestments,ithelpskeeplastminuteTDSsurprisesatbay.

CanIchangethisdeclarationlater?
Yes,atthisstageyouareonlyaskedaboutyourintenttosavetaxes.Youractualtaxsavingsmayturnouttobedifferent.
AfinaladjustmentbasedonactualproofsubmissionismadesometimebetweenJanuaryandMarchofnextyear.

Idontknowwhatmyfinalinvestmentswilllooklike?
Theinitialfewweeksofafinancialyearareimportantifyouwanttobediligentabouttaxes.Planninginadvancewillhelpspreadyour
investmentsthroughtheyear.Andputyouintopgearformakingthemostofyourtaxsavings.

www.clearTax.in

3
FOR PRIVATE CIRCULATION ONLY

4. Howtodeclarehomeloandetailstoclaimtaxbenefitsthroughemployer

Ifyouhavetakenahomeloanforconstructionorpurchaseofahouseandtheconstructionisalsocompleted,youareeligibletoclaimtax
benefits.Thesetaxbenefitscanbeclaimedviayouremployer.Bydeclaringhomeloandetailstoyouremployer,youcanmakesuretax
benefitsareallowedfromyoursalaryandlowerTDSisdeductedbyyouremployer.

Thissavesyoufromthehassleofaskingforarefundatthetimeoffilingyourreturnsandincreasesyourmonthlyinflow.

Snapshotoftaxbenefitsonhomeloans

AmaximumdeductionofRs2lakhscanbeclaimedonhome Ifconstructionisnotcompletewithin3yearsfromtheendofthe
loaninterestinafinancialyear.Ifyourinterestoutgoislowerthan financialyearinwhichloanwastaken,deductionofonlyRs30,000
Rs2lakhs,claimsuchloweramount. isallowedinsteadofRs2lakhs.

Homeloaninterestcanbeclaimedasdeductionstartingthe Claiminginterestdeduction,shallresultinalossunderhouse
yearinwhichtheconstructioniscomplete.Fore.g.Ifconstructionis property.Thislosscanbeadjustedagainstincomefromother
completedinDecember2016,youcanclaimtheinterestforthefull headsinthecurrentyearupto2Lakhsonly.Thebalancelosscanbe
financialyear2016-17inyourtaxreturnforFY2016-17. carriedforwardedfornext8Years

Principalrepaymentscanbeclaimedundersection80C.
Stampdutyandregistrationchargescanalsobeclaimedunder
section80C,intheyearthesepaymentsaremade.
IfyourhouseisrentedorselfoccupiedinterestofuptoRs2
lakhscanbeclaimed
Incaseofjointowners,bothcanclaimRs2lakhstaxbenefit
eachprovidedtheyarebothco-ownersandco-borrowers.
Therefore,homeloantaxbenefitsreduceyourtaxableincome.

www.clearTax.in

4
FOR PRIVATE CIRCULATION ONLY

Interestthatbelongstothepre-constructionperiodcanbe
claimedin5equalinstalments,startingtheyearinwhich Anyunadjustedlosscanbecarriedforwardfor8years,however,in
constructioniscomplete.However,totaldeductioninayearcannot suchyearsitcanonlybeadjustedfromhousepropertyincome.
exceedRs2lakhs.

Detailstobesubmittedtoclaimhomeloantaxbenefits:

Declareyouareanownerofahouseproperty,andaborrowerofahomeloan.Alsoaddressofthepropertyisusuallyasked

Thedateofcompletionofconstructionmaybeasked.(Note:homeloantaxbenefitscanonlybeclaimedoncethe
constructioniscomplete).

Askyourlenderforestimatedinterestoutgoforthefinancialyear.Anddeclarethisamounttoyouremployer.

Ifyouwanttoclaimprincipalrepaymentorstampdutyandregistrationchargesundersection80C.Declarethesetoo,the
lendershouldbeabletoprovideyouestimatedvaluesofprincipaltoberepaid.

ReadindetailabouthomeloantaxbenefitsonourHousePropertyGuidehere

www.clearTax.in

5
FOR PRIVATE CIRCULATION ONLY

5. Example

ThisexampleexplainshowAdityaplannedhistaxesandmadeataxsavingdeclarationtohisemployerforFY2017-18.

AdityaworkswithSuperLtdinLucknow.HelivesonrentandreceivesHRAofRs20,000.HisannualsalaryisRs15lakhs.SuperLtdhassent
anemailtoitsemployeesaskingthemtomakeaninvestmentdeclaration.Adityaneedssomehelpplanninghistaxes.
WefoundoutAdityaispayingarentofRs30,000.HeisalsomakingalifeinsurancepremiumpaymentofRs15,000everyyear.

Adityais27yearsoldandisplanningtoinvestinELSSduringthisyear.HeplanstosetasideRs8,000everymonthandstartanELSSSIP.
AdityahasheardalotaboutNPSinthepastyearandplanstoopenanNPSaccountthisyear.

LetshelpAdityasubmithisinvestmentdeclaration!

AmaximumofRs1.5lakhscanbeclaimedundersection80CandAdityawantstomaximisethissectionasitwillhelphimsavealotoftax.
Lifeinsurancepremiumpaymentsareeligibleundersection80C.ELSSinvestmentsarealsoeligibleundersection80C.

SinceheisplanningtomakeamonthlySIPofRs8,000,itwilltotaluptoRs96,000forthewholeyear.ThereforeoutofRs1.5lakhs,Aditya
hasplannedforRs96,000+15,000=Rs1,11,000fortheyear.

AcolleaguetoldAditya,contributiontoEPFmadebyhimarealsoeligibleundersection80C.AdityasbasicsalaryisRs50,000,thereforehis
monthlyEPFcontributionshallbeRs6,000.AnnualcontributionisRs72,000.Therefore,withLICpremium,ELSSandEPFcontributions
AdityawillbeabletoexhaustSection80Candhedeclaresthesetohisemployer.

AdityaisinterestedinopeninganNPSaccountandthereforehedecidestodeclareRs50,000undersection80CCD(1B).
Since,AdityaisreceivingHRAandalsolivesonrent.Hedeclareshismonthlyrentof30,000.AlsohedecidestoclaimRs15,000worthof
medicalbillsashiscompanyallowshimmedicalreimbursements.

www.clearTax.in

6
FOR PRIVATE CIRCULATION ONLY

Adityasfinaltaxdeclarations

Nature Declared Taxsaved

HRA MonthlyRentofRs30,000 30%ofRs20,000x12=Rs72,000(usecalculatorhere)

Medical MedicalBillsofRs15,000 30%ofRs15,000=Rs4500

Reimbursement

80C LifeinsurancepremiumRs15,000 30%ofRs1,50,000=Rs45,000

ELSSRs96,000 (Adityaisinthehighest30%bracket)
EPFRs72,000

NPS80CCD(1B) NPSinvestmentofRs50,000 30%ofRs50,000=Rs15,000

(Adityaisinthehighest30%bracket)

www.clearTax.in

7
FOR PRIVATE CIRCULATION ONLY

AdityasTaxoutgowithandwithouttaxdeclaration

Particulars Nodeclaration Declaration Comments

Taxablecomponent Taxablecomponent

BasicSalary 6,00,000 6,00,000

HRA 2,40,000 DeclaredarentofRs20,000

MedicalReimbursement 15,000 Declaredtosubmitbills

Specialallowance 6,45,000 6,45,000

Total 15,00,000 12,45,000

Deductions

80C 1,50,000 ELSS,LICPremium,EPF

80CCD(1B) 50,000 NPS

LessTotaldeductions 2,00,000

Taxoutgo 2,70,375 1,29,780 Forcalculations,useClearTaxs

incometaxcalculatorhere

www.clearTax.in

8
FOR PRIVATE CIRCULATION ONLY

6. AnalysisofTaxSavingsProducts

www.clearTax.in

9
FOR PRIVATE CIRCULATION ONLY

5.Quickreference80Cdeductions(ReadtheFullClearTaxGuidetoSection80Deductionshere)

Section Deductionon FY2017-18 FY2016-17

Section80C InvestmentinPPF Rs1,50,000 Rs1,50,000

EmployeesPFcontribution
NSCs
LifeInsurancePremiumpayment
ChildrensTuitionFee
PrincipalRepaymentofhomeloan
InvestmentinSukanyaSamridhiAccount
ULIPS
ELSS
Sumpaidtopurchasedeferredannuity
Fiveyeardepositscheme
SeniorCitizenssavingsscheme
Subscriptiontonotifiedsecurities/notifieddepositsscheme
ContributiontonotifiedPension-FundsetupbyMutualFundorUTI
SubscriptiontoHomeLoan-AccountSchemeoftheNational
HousingBank
Subscriptiontodepositschemeofapublicsectororcompany
engagedinprovidinghousingfinance
ContributiontonotifiedannuityPlanofLIC
SubscriptiontonotifiedbondsofNABARD

80CCC ForamountdepositedinannuityplanofLICoranyotherinsurerforpension
fromafundreferredtoinSection10(23AAB).

80CCD(1) EmployeescontributiontoNPSaccount

www.clearTax.in

10
FOR PRIVATE CIRCULATION ONLY

80CCD(2) EmployerscontributiontoNPSaccount Maximumupto Maximumupto

10%ofsalary(no 10%ofsalary(no
monetaryceiling) monetaryceiling)

80CCD(1B) AdditionalcontributiontoNPS Rs50,000 Rs50,000

80TTA InterestIncomefromSavingsaccount(notapplicableoninterestincome Maximumupto Maximumupto

fromfixeddeposits) 10,000 10,000

80GG ForrentpaidwhenHRAisnotreceivedfromemployer Leastof- Leastof-

Rentpaidminus Rentpaidminus
10%oftotal 10%oftotal
income income

Rs.5,000per Rs.5,000per
month month

25%oftotal 25%oftotal
income income

80E Interestoneducationloan Interestpaidfora Interestpaidfora

periodof8years periodof8years

80EE Interestonhomeloanforfirsttimehomeowners Rs50,000(in Rs50,000(in

(NotApplicableforfreshloanstakeninFY2017-18onwards) additiontoRs2 additiontoRs2
*ThisdeductionisavailableforResidentialHouseonly lakhs)provided lakhs)provided
conditionslaid conditionslaid
downarefulfilled downarefulfilled

www.clearTax.in

11
FOR PRIVATE CIRCULATION ONLY

80CCG RajivGandhiEquitySchemeforinvestmentsinEquities* Lowerof Lowerof

(NotapplicableifnewinvestmentsmadeinFY2017-18onwards.) 50%ofamount 50%ofamount
investedinequity investedinequity
sharesorRs sharesorRs25,000
25,000

80D MedicalInsurance:Self,spouse,children MaxRs25,000 MaxRs25,000

MedicalInsurance:Parentslessthan60yearsold
MaxRs25,000 MaxRs25,000

MedicalInsurance:Parentsmorethan60yearsoldORclaimmedical MaxRs30,000 MaxRs30,000

expensesforuninsuredparentsmorethan80yearsold

80DD Medicaltreatmentforhandicappeddependantorpaymenttospecified
schemeformaintenanceofhandicappeddependant Rs75,000 Rs75,000

Disabilityis40%ormorebutlessthan80%

Disabilityis80%ormore Rs1,25,000 Rs1,25,000

80DDB MedicalExpenditureonSelforDependentRelativefordiseasesspecifiedin
Rule11DD
LowerofRs40,000 LowerofRs40,000
Forlessthan60yearsold ortheamount ortheamount
actuallypaid actuallypaid

LowerofRs60,000 LowerofRs60,000
ortheamount ortheamount
Formorethan60yearsold actuallypaid actuallypaid

www.clearTax.in

12
FOR PRIVATE CIRCULATION ONLY

LowerofRs80,000 LowerofRs80,000
ortheamount ortheamount
Formorethan80yearsold actuallypaid actuallypaid

80U Self-sufferingfromdisability
Individualsufferingfromaphysicaldisability(includingblindness)ormental Rs75,000 Rs75,000
retardation.

Individualsufferingfromseveredisability Rs1,25,000 Rs1,25,000

www.clearTax.in

13
FOR PRIVATE CIRCULATION ONLY

THISTAXSEASONFILEWITHUSONWWW.CLEARTAX.IN

ITSFREEANDYOULLBEDONEIN7MINUTES!

FORQUERIESWRITETOSUPPORT@CLEARTAX.IN

www.clearTax.in

14