Investment Validation guidelines

FY 20 - 21

The Following generic guidelines to be followed by all investment proofs uploaded in Ess Portal. Guidelines are
derived based on IT Act.

1. House Rent Allowance

Allowed Disallowed

Less than 3000 : No Proof required Bank statement

Rent receipt with revenue stamp (Karnataka and Union Territory of

NEFT screenshot
Jammu & Kashmir and Ladakh stamp not required)

Landlord Name / Pan or AADHAAR/ Signature is mandatory if total

Cheque copy
rent Exceeds 1 lakh, irrespective of any number of landlords

Rent receipt should be provided. Claim based on one month receipt and proofs

If you don't have HRA as part of your CTC you will be eligible for
Max 5000 Pm under section 80GG subjection.

Revenue stamp is not required when rent receipt clearly indicates

the value of rent paid above Rs 5000 PM and states the mode of
payment as Cheque / NEFT or IMPS.

Rental agreement and rent receipt should be provided as

per your company guideline

2. Interest on Housing loan & Principal

Allowed Disallowed
Benefit under section 24 is available if you are owner / co - owner
Bank Statement
of the property declared
Provisional Certificate with breakup of principal and interest Co-guarantor / co-borrower
For, Pre construction interest, All Pervious Year Certificate to be
Stamp duty & Registration charges for vacant land
furnished
Municipal tax receipt should be furnished Land loan not allowed
Loan statement from friends or relative provided such agreement
are notified by notarized authorities’ and properly signed and
stamped by all parties
Stamp duty & Registration charges will be allowable irrespective
whether possession has been received or not.

Brought forward loss- ITR (2018-19) is mandatory and such losses

can be claimed only against income from house property
Possession certificate should be provided as per your
company guideline. In absence of such certificate,
electricity bill or water bill or municipal tax bill for the

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Investment Validation Guidelines
FY 20 - 21

registered residence is to be submitted

IMP: Any 2 house property can be shown as self-occupied but the interest for both is restricted to 2
Lakhs only, rest all property are deemed let out and respective notional rent must be shown

3. 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 Consolidate statement
Following conditions to be satisfied to be eligible for claiming
deduction under this section
1) Stamp duty value of the house property should be Rs 50 lakhs or
less.
2) Loan Taken for the house property should be Rs 35 lakhs or less.
2) The taxpayer should be a first-time home buyer. The taxpayer
should not own any residential house property as on the date of
sanction of the loan. Loan should be taken during the FY 2016-17.
3) A maximum amount of INR 50,000/- will only be permissible as a
deduction from FY 2016-17 and subsequent years until loan is
repaid

Possession is not required, thus under-construction

houses can also be claimed (irrespective let-out or self-
occupied)

4. Section 80 EEA – Deduction for Interest Paid on Home Loan (Additional deduction for Self-occupied)

Allowed Disallowed
Provisional Certificate with breakup of principal and interest Bank statement
Document in the name of Self Consolidate statement
Following conditions to be satisfied to be eligible for claiming
deduction under this section
1) Stamp duty value of the house property should be Rs 45 lakhs or
less.
2) The taxpayer should be a first-time home buyer. The taxpayer
should not own any residential house property as on the date of
sanction of the loan.
3) A maximum amount of INR 1.5 Lakhs will only be permissible as
a deduction for FY 2019-20 and subsequent financial years

Possession is not required, thus under-construction

houses can also be claimed (irrespective let-out or self-
occupied)

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Investment Validation Guidelines
FY 20 - 21

5. Previous Employment Income

Allowed Disallowed
Form 16 / Form 12B / FNF tax computation sheet is mandatory with
Monthly Pay slip / Tax slip
company seal and sign
In case of Softcopy, document should contain it is computer
Self-computation
generated document, hence signature is not required

6. Section 80C Maximum Exemption (1.5 Lakh)

National Savings Scheme (Nsc)

Allowed Disallowed
Certificate should pertain to Current FY Projections
NSC Passbook will be allowable Previous Year certificate
NSC should be mentioned on the Front of passbook Dependents

Life insurance corporation (LIC)

Allowed Disallowed
Investment in the name of Self / Spouse & Children allowed Investment in the name of Parents or In laws
Bond,Latefee & Bank statement
Copy of Premium paid receipt
GST / CGST & Service Tax
Projection- Last year premium paid receipt is mandatory

ELSS / Mutual Funds (Tax Saving)/ ULIP

Allowed Disallowed
Investment in the name of Spouse / Children &
Copy of purchase SIP receipt
Parents
Investment in the name of self Consolidate statement
Equity based mutual funds only allowable
Projection- Last year SIP receipt is mandatory

Public Provident Fund(PPF)

Allowed Disallowed

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Investment Validation Guidelines
FY 20 - 21

PPF Passbook Projections

PPF should be mentioned in the Front page of passbook Bank statement
Counterfoil with date & seal and PPF check box should be ticked
Investment in the name of Self / Spouse & Children

Child Education Expenses

Allowed Disallowed
Tuition / Term / Admin / Annual fee Projections
Play school / Kindergarten / Montessori Bank statement / Cheque
Pre Printed bank challan All other fee
Any project or extra-curricular activity pay , Tuition
Annual certificate
or coaching classes fees

Post Office Time Deposit

Allowed Disallowed
5 yrs. lock in period to be evident
Passbook
Investment in the name of self

NSCAI Only Interest Amount will be taken to other income, same will be exempted under 80 C
Allowed Disallowed
Investment in the name of Spouse / Children &
Previous Year certificate
Parents
NSC Passbook
NSC should be mentioned on the Front of passbook

Sukanya Samriddhi Yojana

Allowed Disallowed
SSY Passbook Projections
SSY should be mentioned in the Front of passbook Bank statement

Counterfoil with date & seal and SSY check box should be ticked

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Investment Validation Guidelines
FY 20 - 21

7. Section 80 D Mediclaim

Allowed Disallowed
Investment in the name of Self / Spouse / Children & Parents Previous Year certificate
Age should be mentioned for Parents if claimed Service tax / GST / CGST
Preventive health checkup or master health check-up marked in
Receipts restricted to 5000 only (for the complete family including Bank statement
parents)
Payment should be done in other than cash mode Medical / Admission bills
Medical bills are allowed only if the parents or self are
senior citizen and have no medical insurance policy in
their name
IMP: IN case a lumpsum premium is paid for more than
one year, then the employee can claim the premium
value for each year basis.
For example: Mr.A paid Rs.50,000 premium for 5 years,
then he can claim 10,000 each for next 5 years based on
the document submitted.

8. 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 Consolidate statement
The payment period is 8 years from the year in which the first
installment was paid.

9. Section 80 EEB – Deduction in respect of Interest paid on Electric Vehicle Loan

Allowed Disallowed
Provisional Certificate with breakup of principal and interest Bank statement
Document in the name of Self Consolidate statement
Copy of RC Book & Driving License.

10. Section 80CCG – Rajiv Gandhi Equity Savings Scheme

NO LONGER APPLICABLE

Allowed Disallowed
The below section is discontinued from FY 2017-18 for any new
investors. New investment after 2017-18
But if the investor has contributed in any previous year and there

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Investment Validation Guidelines
FY 20 - 21

are pending amount carried forward (as the

investment amount can be carry forwarded for 3 year), the same
can be claimed this year.
2015 - 2016
Exemption: If the investment was made in past and there is
unclaimed balance then the LIMIT IS 25% OF INVESTMENT
MADE or Rs.50000 which ever is lower

Section 80 DD/ 80U- Disability

Allowed Disallowed
Previous Year certificate is not allowable for
Disability Percentage should be mentioned in the certificate
temporary
Current FY certificate 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.

12. 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) and / or
80CCD(1B)

13. Other Income

Allowed Disallowed

Based on employee declaration No capital gains allowed or business income

14. Section 80GG

Allowed Disallowed
Rent Receipts
HRA should not be part of CTC

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Investment Validation Guidelines
FY 20 - 21

15. Jeevan (Pension Plan) Maximum Exemption (1.5 Lakh) under 80CCC

Allowed Disallowed

Document in the name of Self Document in the name of dependents

Bond, Late fee & Bank statement

Copy of Premium paid receipt
GST / CGST & Service Tax

Projection- Last year premium paid receipt is mandatory

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