Investment

Validation Guidelines
FY 2022-23
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.
1 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:

2 Leave Travel Allowance

Allowed Disallowed

For Travel Bills Bills issued by travel agencies that

Amount spent or allowed travel claim depending on road, includes accommodation and sightseeing
rail, and air, whichever is lower will not be considered.

Roadways travel bills are allowed

But the maximum allowable claim would be first-class rail
fare of the same distance.
For example, “X” would have travelled by car from Pune to
Chennai but while calculating the maximum benefit the
first-class rail fare between Pune-Chennai
would be considered.
3 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

Loan statement from friends or relatives can be provided and

such agreements are to be notified by notarized authorities’
and properly signed and stamped by all parties. Also only No declaration allowed
interest is allowed and not the principal claim.

Stamp duty & registration charges will be allowed irrespective

of whether the 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.

Note: Possession certificate may be a requirement as per

your company guideline and policy. In the absence of such
certificate, electricity bill, water bill or municipal tax bill for
registered residence needs to be submitted. Make sure you
check the “Points to consider” icon while making submission
on the Employee Self Service (ESS) Portal

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

4 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.
5 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

Investments in the name of dependents

Copy of purchase SIP receipt
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 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

5 years 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

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 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
6 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.

7 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.
8 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.
9 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.

10 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

11 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.

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)

TIER-I is allowed only

Note: Any payroll contribution is already considered in the payroll engine so that need not be shown separately.

13 Other Income 80TTA (Rs.10,000) / 80TTB

(Rs.50,000 senior citizen)
Allowed Disallowed

Based on employee declaration No capital gains allowed or business income

80TTA and 80TTB is only for saving deposit interest Not for Fixed deposit or recurring deposit interest
income earned claim.
14 Section 80GG
Allowed Disallowed

Rent receipts

HRA should not be part of CTC

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

Copy of premium paid receipt Bond, late fee & bank statement

Projection - Last year’s premium paid receipt is mandatory

16 Provident Fund
Allowed Disallowed

Copy of passbook or signed copy of calculation

Please note: Both employee and employer details must be shown separately. Thus, all supporting document for
employee and employer must be separately highlighted and submitted.

For employee: (only interest portion) which is earned on excess contribution over and above Rs 2.5 Lakhs per annum

For Employer: Contribution is taken from payroll

Interest needs to be calculated based on the formula:
**Taxable perk for the year = [(Amount more than 7.5 Lakh for the year / 2) X Average rate of interest] + [(Aggregate value of
contribution perks under 17(2) in previous years + Total Taxable perk u/s 17(2) in previous years) X Average rate of interest]
Average rate of interest = Amount of income earned for the year / (opening balance of PF+NPS+Superannuation Fund + Closing balance of
PF+NPS+Superannuation Fund/2)
Thank you