G UIDELINES FOR I NVESTMENT PROO F S UBMISSION F O R I NCOME T AX
(These Guidelines may change during the year based on time to time various announcements from Income Tax Department)
Section 10 Exemptions: -
Exemptions Proofs to be submitted
Sec 10(13A) 1. Original rent receipts for all the months. 1.
House Rent Rent receipt should contain the details like
Allowance: - Owner and tenant name, date of payment, 2.
month, address of rented house, signature of
landlord.
2. PAN of Landlord if rent amount exceeds Rs 3.
8333.33/per month- in a current financial
year.
3. Registered/Notarized Rent Agreement is not
mandatory, it is recommended to have PAN
details of both (landlord & tenant) on L & L. 4. Landlord PAN is mandatory if monthly rental amount exceeds
4. Payment of rent via banking channel is
recommended for all transactions. If
employee paid rent via banking transaction5.
then revenue stamp not required.
5. Rent Receipts should be for the period with
current organization only. Exemptions for the
period not with the current organization can’t
be considered.
FOR FY 2021-2022
Guidelines as per income tax act and rules Exemption Criteria as per income tax act
and rules
Revenue stamp is mandatory if rental amount is more than Rs Exemption Criteria
5,000/- in a month. 1. Actual HRA earned for the year.
If rent is paid through cheque or Bank Transfer then revenue 2. Actual Rent paid minus 10% of earned
stamp is not required. But at the same time employee have Basic
proof for the same.for submission. 3. 40% of Basic or 50% of Basic in case of
No need to produce Rent Receipts having rental expenditure Metro cities, (Current Metro Cities -
up to Rs 3,000/- per month. However, in the regular Delhi/Mumbai/Kolkata/Chennai)
assessment, the Assessing Officer will be free to make such
enquiry as he fits for the purpose of satisfying himself that the Least of the above is Exempt for Tax
employee has incurred actual expenditure on payment of rent.
Rs 8333.33/ per month or if Annual Rental amount exceeds
100000/-
HRA Benefit and Interest on Self Occupied House Property
cannot be claim if both are in same city, provided if possession
of the property is in current financial year then he can claim
HRA up to the date of possession. In this case you have to
submit the declaration for claiming Both HRA & Housing Loan
Interest.
6. Declaration from employee for claiming both HRA & Housing
loan benefit in the same City of office location then Declaration
should have detail address of both residences.
7. Address proof for permanent address (Passport, Aadhar,
Electricity Bill etc.)
Declaration Claiming
Both HRA and Hsg Loan.doc
Chapter VIA deductions:-

2
Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
80D 1. Photocopy of receipt issued by the 1. Receipts should be current financial year only. Deduction Criteria
Medical Insurance Company. 2. Policy should be in the name of individual, spouse, children. 1. Self/Spouse/Children: Rs
Insurance (Only Policy Premium paid by employee 3. The payment of aforesaid premium required to be paid by any 25,000/- (if payment made by
is allowed including GST) mode other than cash. employee)
2. Section 80D should be mentioned on the 4. Self/Spouse/Children covered 25000/- Parent covered 25000 2. Parents(Non Senior Citizen) : -
policy document. Max = 50000/- Rs 25,000/-
5. Self/Spouse/Children covered 25000/- Parent covered (Any one 3. Parents (Senior Citizen):- Rs
of them is senior citizen) 50000 With medical expenditure /- Max 50,000/-.
= 75000 4. Self & Parents (Senior Citizen)
6. Self/Spouse/Children covered (Senior Citizen) 50000/- Parent 100000
covered (Senior Citizen) 50000/- Max = 100000/-( For both With 5. Actual Premium Receipt or
medical expenditure Rs. 50000/- each) Above Limits whichever is less is
Preventive health check-up up to 5000/- allowable only if no amount the deduction
is paid for medical insurance.
(Maximum limit is Rs: 100,000/- (Considering Parents are Sr.
Citizen))

1. Photocopy of Doctor’s certificate issued 1. Where condition of disability requires reassessment then fresh Deduction Criteria
80DD by the competent medical authority in a certificate to be obtained after its expiry to continue claiming the 1. Handicapped Dependent with
Handicapped Government Hospital. (It is mandatory) deduction disability (less than 40 %.) –
Dependents:- then Nil exemption
2. Dependent means Spouse, Children, Parents, brothers and
2. Handicapped Dependent with
sisters of the individual.
disability (more than 40% but
less than 80%) – then 75,000/-
exemption.
3. Handicapped Dependent with
Severe disability (more than
80%) – then 1,25,000/-
exemption.

3
Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
80DDB 1 Photocopy of Doctor’s certificate issued 1. Medical treatment of self/dependent specified disease. Deduction Criteria
Medical by the competent medical authority in a 2. Copy of necessary certificate No. 10(I) issued by the Govt. Medical 1. Amount of deduction is Rs.
Treatment of Government Hospital/Pvt Authority and the bills/receipt stating the actual expenditure 40,000/- or (amount actually
Specified Hospitals(Doctorate of Medicine degree). made for the treatment of the specified disease or the certificate paid less amount received from
Diseases:- (It is mandatory) should include the same. insurance company) whichever
3. Eligible for Self, Spouse, Children & Parents. is lower is eligible for deduction.
2. Bills/Receipt stating the actual 4. Amount of deduction is Rs. 40,000/- or amount actually paid 2. In case of Senior Citizen &
expenditure made for the treatment of whichever is lower. Dependent Sr. Citizen – then Rs.
the specified disease or the certificate 5. In case of Senior Citizen (Above 60yrs of age) & Dependent Sr. 1,00,000/- or (amount actually
should include the same. Citizen – then Rs. 1,00,000/- or actual Expenditure incurred paid less amount received from
whichever is lower. Is eligible for exemption. insurance company) whichever
6. In case of Very Senior Citizen (Above 80yrs of age) & Dependent is lower is eligible for deduction.
80DDB - Disease Very Sr. Citizen – then Rs. 1,00,000/- or actual Expenditure
List.pdf incurred whichever is lower. Is eligible for exemption.
7. Bills should be of the current financial year only.

1. Photocopy of Doctor’s certificate issued 1. Where condition of disability requires reassessment then fresh Deduction Criteria
80U by the competent medical authority in a certificate to be obtained after its expiry to continue claiming the 1. Physically Handicapped with
Physically Government Hospital. (It is mandatory) deduction. disability (less than 40 %.) –
Handicap Self:- Then Nil exemption.
2. Physically Handicapped with
disability (more than 40% but
less than 80%) – then 75,000/-
exemption.
3. Physically Handicapped with
Severe disability (more than
80%) – then 1,25,000/-
exempt.

4
Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
80E 1. Letter / certificate from the Bank / 1. Interest paid on Loan taken for Higher Education such as Deduction Criteria
Education Loan Financial Institution specifying the Engineering / Medical/ etc. are allowed. 1. No capping of maximum limit –
Interest Benefit following: 2. “Higher Education” means full-time studies for any graduate or Actual interest paid by the
post-graduate course in engineering, medicine, management or employee in current Financial
 Said loan is an Educational for post-graduate course in applied sciences or pure sciences Year is allowed as deduction.
Loan. including mathematics and statistics.
 Amount of interest paid on the 3. This is applicable for education loan, for education of self, spouse
loan in the current year. and children.
 Loan should be on the name of 4. Loans availed only from Financial Institution / Bank is eligible
employee. (within India).
5. Only the interest component paid during the year will be eligible
for deduction, hence the certificate submitted must clearly state
the interest component for the year.
6. The Certificate should be for the current financial year.
7. The deduction shall be allowed in computing the total income for
the Financial Year in which the employee starts repaying the
interest on the loan was taken and immediately succeeding seven
financial years or until the financial year the interest is paid in full
by the taxpayer, whichever is earlier.
8. This is applicable for education loan, for education of self, spouse
and children

Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
1. Photocopy of receipt issued by the 1. Policy from any company approved by IRDA. Deduction Criteria
Sec 80CCD(1B) Insurance Company. 2. Late payment fees and other charges will not be considered as 1. Maximum Deduction capped is
– National 2. Section 80CCD(1B) should be premium paid. Rs.50,000/- for Sec 80CCD (1B).
Pension mentioned on the pension policy 3. Photocopy of Receipt should be of the current financial year only. 2. If invested amount more than Rs.
Scheme document 4. Photocopy should contain the Name, Date and Premium amount 50,000/- then additional amount
and Receipt number. will be get exempted under sec
5. Policy should be in the name of individual only 80C as 80 CCD (1) up to 10% of
Proposal Deposit /Acknowledgement slips will not be considered. Annual (Basic + DA) but not more
than 150000/-.

5
For Section 80EEA – Additional Interest benefit on repayment of Housing Loan Interest up to Rs.
150000/-, the condition of loan sanction date allowed till 31-Mar-2022.

6
7
Loss from House Property

8
Exemptions Proofs to be submitted
Income / Loss 1. Photocopy of Provisional certificate
on House from the Housing Finance Company /
Property Bank.
2. Photocopy of possession certificate
from the builder / Completion
Certificate/ Electricity bill /
Municipal tax paid receipt (any one
document) if property is acquired
during the current financial year.
3. Self-declaration by the employee in case
he is availing both HRA / Housing
Interest benefit without property being
let out.
Format - Declaration
Claiming Both HRA and Hsg Loan.doc
4. In case of jointly availed property loan,
the employee to declare only the
amount paid by him/her in the
declaration with co-borrower / co-
owner’s signature.
Format - Declaration
Joint Housing Loan.doc
5. If any new joiner’s in current financial
year then need to be submit Possession
letter of house property or Last year
Form 16 stated that he/she availed the
House loan benefit.
Section 80C deductions (Maximum Deduction capped up to Rs.1.5 Lacs)
Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
1. An Assesse can avail a deduction on repayment of Interest on Deduction Criteria
borrowed capital for construction, acquisition of a house property. 1. Self Occupied: Maximum
2. Interest paid in the current financial year is eligible for deduction. deduction limit is Rs. 2, 00,000/-
3. Document should contain the breakup of interest and principal per annum for Housing Loan
component separately, Name of the borrower, date, Loan account Interest & Let Out Property.
number and property address. Actual Interest or Rs 2,00,000/-
4. The benefit of deduction is applicable only after occupancy of whichever is less.
the house and Pre-EMI interest (EMI paid before occupation of the 1.1 New Section 80EE – Available
house) is deductible in 5 equal installments starting from the year for first loan buyer where home
when the construction is completed or property is acquired. loan is sanctioned in financial year
5. Employee has to submit possession letter or municipal tax 2016-17 & Home Loan does not
receipt or electricity bill to avail the interest benefit if the exceed 35 Lakh & Property value
property is acquired during current financial year. does not exceed 50 Lakh, then
6. In case the Loan taken is on Joint Name, a declaration relating additional Rs. 50,000/- interest
to percentage-wise benefit to be claimed for Income Tax deduction benefit can be claimed.
purpose should be submitted.
7. In case of self-occupied property, employee cannot claim both 2. Let out Property: Maximum
HRA exemption as well as Interest on house property where deduction limit is Rs. 2,
the property is in the same city / region. [e.g., if both 00,000/-per annum for
properties are at same place/region then you can’t claim Housing Loan Interest & Let
exemption on both.] Out Property.
8. In case you are going to claim both the benefits of HRA and Actual Interest or Rs
Housing Loan and if both the properties are situated in the same 2,00,000/- whichever is less.
place, then the benefit of HRA would be passed on only till the date
of possession of house property.
9. You can claim both the benefit, if you can prove that you are
staying in the rented house only for the employment purpose 6 Income from Let
and your house property is located at other place which is far out Property FY 2020-21.xlsx
away from your place of employment.
10. In case of Let out property, it is mandatory to fill up the
computation of Loss / Income. Format attached for computing the
net loss. Also submit the Municipal tax receipt & Rent agreement or
Receipt.
9
Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
1. Policy from any company approved by IRDA. Deduction Criteria
Sec 80CCC 1. Photocopy of receipt issued by the
2. Late payment fees and other charges will not be considered as 1. Maximum Deduction capped is
Pension Plan:- Insurance Company.
premium paid. Including Gst also Rs.1.5 Lacs for Sec 80C.
3. Photocopy of Receipt should be of the current financial year only. For more details attached
4. Photocopy should contain the Name, Date and Premium 80CCC IT document for your
amount and Receipt number. ref.
5. Policy should be in the name of individual, spouse, & children.
6. Proposal Deposit /Acknowledgement slips will not be
considered.
1. Provisional Certificate from the Financial 1. Provisional Certificate should be of the current Financial Year. Deduction Criteria
Sec 80C
Institution/Bank. 2. Photocopy should contain the Name, Date, breakup of Interest and 1. Maximum Deduction capped is
Housing
2. Declaration from Co-owner and Co Principal Amount, Loan account number, address of the property, Rs.1.5 Lacs for Sec 80C.
Principal:-
borrowers in case property is in joint Loan amount.
name and claiming the benefit. 3. Declaration from Co owner and Co borrowers in case property
3. Photocopy of possession certificate from is in joint name and claiming the benefit.
the builder / Completion Certificate/
Electricity bill / Municipal tax paid
receipt (any one document) if property is
acquired during the current financial year
4.
Sec 80C 1. Photocopy of all premium receipts issued 1. Life Insurance Premium must be the name of individual, spouse & Deduction Criteria
Life Insurance by the Insurance Company. children. 1. Maximum Deduction capped is
Premium:- 2. Photocopy of Premium Statement from 2. Policy from any company approved by IRDA. Rs.1.5 Lacs for Sec 80C.
the LIC 3. Late payment fees and other charges will not be considered as
premium paid.
4. Photocopy of Receipt should be of the current financial year only.
5. Photocopy should contain the Name, Date and Premium
amount and Receipt number.
6. Policy should be in the name of individual, spouse, & children.
7. Proposal Deposit /Acknowledgement slips will not be
considered.
8. Policy of Parents is not allowed as deduction.

1. Photocopy of Receipt should be of the current financial year only. Deduction Criteria
Sec 80C 1. Photocopy of Certificate or photocopy of
2. Photocopy should contain the Name, Date and Premium amount 1. Maximum Deduction capped is
National Saving the counterfoil given by the post office at
and Receipt number. Rs.1.5 Lacs for Sec 80C.
Certificate:- the time of paying the amount.
3. NSC certificate should be in the name of individual only.
4. NSC certificate of family members and Parents is not allowed
as deduction.

10
Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
1. NSC Accrued interest will show as income and also as deduction Deduction Criteria
Sec 80C 1. Photocopy of all the NSC certificates for
under Section 80 C. 1. Maximum Deduction capped is
Accrued which interest is being claimed.
2. Photocopy should contain the Name, Date and Premium amount Rs.1.5 Lacs for Sec 80C.
Interest on
and Receipt number.
National Saving
3. NSC certificate should be in the name of individual only.
Certificate:-
4. NSC certificate of family members and Parents is not allowed
as deduction.

1. Public Provident fund can be in the name of individual, spouse & Deduction Criteria
Sec 80C 1. Photocopy of the counterfoil given by the
children. 1. Maximum Deduction capped is
bank at the time of making payment.
Public 2. Photocopy of Receipt should be of the current financial year only. Rs.1.5 Lacs for Sec 80C.
Provident 2. Photocopy of Front Page and 3. Photocopy should contain the Name, Date and Premium
Fund:- Transaction page of the PPF Passbook. amount.
1. Photocopy of all premium receipts/ or 1. Late payment fees and other charges will not be considered Deduction Criteria
Sec 80C
Certificates or Statement issued by the as premium paid. 1. Maximum Deduction capped is
Unit Linked Insurance Company. 2. Photocopy of Receipt should be of the current financial year only. Rs.1.5 Lacs for Sec 80C.
Insurance Plan 3. Photocopy should contain the Name, Date and Premium amount
(ULIP ):- and Receipt number.
4. Policy can be in the name of individual, spouse, & children
and parents.
5. Proposal Deposit /Acknowledgement slips should have
proper seal & signatures by the Bank/ Asset Management
Company (AMC).
1. Photocopy of all premium receipts/ or 1. Photocopy of Receipt should be of the current financial year only. Deduction Criteria
Sec 80C
Certificates or Statement issued by the 2. Photocopy should contain the Name, Date and Premium amount 1. Maximum Deduction capped is
Mutual Fund Insurance Company. and Receipt number. Rs.1.5 Lacs for Sec 80C.
(Approved):- 3. Policy should be in the name of individual only.
4. Policy of family members and Parents is not allowed as
deduction.
5. Proposal Deposit /Acknowledgement slips should have proper
seal & signatures by the Bank/ Asset Management Company
(AMC).

11
Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
1. Tuition Fees, whether at the time of admission or thereafter, paid Deduction Criteria
Sec 80C 1. Photocopy of the receipts issued by the
to any university, college, school or other educational institution 1. Maximum Deduction capped is
Children’s school, college, university or educational
situated in India, for the purpose of full time education of any two Rs.1.5 Lacs for Sec 80C.
Tuition Fee:- institution.
children of the employee.
2. Full time education includes any educational course offered by
any university, college, school or other educational institution to a
student who is enrolled full time for the said course. It is also
clarified that full time education includes play – school activities,
Pre Nursery and nursery classes.
3. It is clarified that the amount allowable as tuition fees shall
include any payment of fees to any university, school, college or
other educational institution in India except the amount
representing payment in the nature of development fees or
donation or capitation fees or payment of similar nature.
4. Photocopy of Receipt should be of the current financial year only.
5. Photocopy should contain the Name, Date and Premium amount
and Receipt number.
6. Maximum up to two children’s tuition fee is allowed as deduction.

1. Photocopy of Receipt should be of the current financial year only. Deduction Criteria
Sec 80C 1. Photocopy of Certificate or photocopy of
2. Photocopy should contain the Name, Date and Premium amount 2. Maximum Deduction capped is
National Saving the counterfoil given by the post office at
and Receipt number. Rs.1.5 Lacs for Sec 80C.
Schemes/KVP :- the time of paying the amount.
3. NSS can be in the name of individual, spouse, & children and
parents.

1. Photocopy of Receipt or Certificate or 1. Photocopy of Receipt should be of the current financial year only. Deduction Criteria
Sec 80C
photocopy of the counterfoil given if bond 2. Photocopy should contain the Name, Date and Premium amount 1. Maximum Deduction capped is
Tax Saving is not issue. and Receipt number. Rs.1.5 Lacs for Sec 80C.
Shares/Bond:- 3. Shares/Bonds should be in the name of individual only.
4. Shares/Bonds in the name of family members and Parents are not
allowed as deduction.
1. Photocopy of Receipt or Certificate or 1. Photocopy of Receipt should be of the current financial year only. Deduction Criteria
Sec 80C
photocopy of the counterfoil given by the 2. Photocopy should contain the Name, Date and Premium amount 1. Maximum Deduction capped is
Fixed Deposit scheduled banks or Post Office. and Receipt number. Rs.1.5 Lacs for Sec 80C.
in Banks / Post 3. Fixed Deposit should be in the name of individual only.
Office:- 4. Fixed Deposit of family members and Parents is not allowed as
deduction.
5. Term deposits for a minimum period of 5 years with a scheduled
bank/Post office are eligible in accordance with the scheme framed
and notified by the Central Government for deduction.
6. Receipt should contained specific clause of IT deduction u/s 80 C.
(For the period not less than 5 yrs)

12
Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
1. Stamp Duty & Registration fees paid at the time of purchases of Deduction Criteria
Sec 80C 1. Photocopy of Index II & Registration
new house property. 1. Maximum Deduction capped is
Certificate required.
Registration/St 2. Stamp Duty and Registration should be of the current Financial Rs.1.5 Lacs for Sec 80C.
amp Duty:- Year.
3. Photocopy should contain the Name, Date, Amount, address of the
property, Loan amount.
4. Declaration from Co owner and Co borrowers in case property is in
joint name and claiming the benefit.
1. Photocopy of Front Page and Transaction 1. Any investment as five year time deposit in an account under the Deduction Criteria
Sec 80C
page of the Passbook. Post Office Time Deposit Rule 1981. 1. Maximum Deduction capped is
Post Office 2. Post Office Time Deposit should be in the name of individual only. Rs.1.5 Lacs for Sec 80C.
Time Deposit:- 3. Photocopy of Receipt should be of the current financial year only.
4. Photocopy should contain the Name, Date and Premium amount.
1. Any investment in an account under the Senior Citizen Saving Deduction Criteria
Sec 80C Senior 1. Photocopy of Receipt or Certificate
Scheme Rule 2004. 1. Maximum Deduction capped is
Citizen Saving
2. Senior Citizen Saving Scheme should be in the name of individual Rs.1.5 Lacs for Sec 80C.
Scheme:-
only.
3. Photocopy of Receipt should be of the current financial year only.
4. Photocopy should contain the Name, Date and Premium amount.
1. Photocopy of Receipt should be of the current financial year Deduction Criteria
Sec 80C 1. Photocopy of Receipt or Certificate
only. 1. Maximum Deduction capped is
Sukanya
2. Photocopy should contain the Name, Date and Premium amount. Rs.1.5 Lacs for Sec 80C.
Samriddhi
3. The account can be opened by Natural or legal guardian of girl child.
Scheme:-
4. The age of the girl at the time of opening of account should not be
more than 10 year.

13
 Chapter VIA deductions:-
Guidelines as per income tax act and rules
Deductions Proofs to be submitted
Deductions Criteria as per
income tax act and rules
1. Photocopy of the Interest Certificate 1. Section 80TTA has been introduced from the financial year 2012- Deduction Criteria
Sec 80TTA
from the Bank. 13. 1. Actual interest received on
Deduction in
2. Interest on saving account is allow as deduction maximum up to Rs saving account or Rs 10000/-
respect of Interest
10000/-. whichever is less.
on deposits in
3. Interest on saving account is fully taxable and considered as
saving accounts:-
additional income.
4. Interest received during current financial year is only allowed.
2. Photocopy of the Interest Certificate 1. Section 80TTB has been introduced from the financial year 2018- Deduction Criteria
Sec 80TTB
from the Bank. 19. Actual interest received on saving
Deduction in
2. Interest on saving account is allow as deduction maximum up to Rs account or Rs 50000/- whichever is
respect of interest
50000/-. less.
on deposits in case
3. Interest on saving account is fully taxable and considered as
of senior citizens.
additional income.
4. Interest received during current financial year is only allowed.

Previous Employment Income and Tax

Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
Previous 1. Form 16 or tax computation sheet along 1. Previous Employer income includes– Attach Previous employer full
Employment with duly filled Form 12B signed from  Gross salary before Profession Tax and final tax calculation sheet
Income and the employee.  Previous Employer Profession Tax along with this form.
Tax:-
 Standard Deduction
 Previous Employer 80C investment
Format - Form  Previous Employer Income Tax
12B.xlsx  Previous Employer Interest on Housing Loan
 Previous Employer 80 D
 Previous Employer 80DD
 Previous Employer 80DDB(2) (Employer NPS)
 Previous Employer 80U
 Previous Employer 80E

14
Deductions Proofs to be submitted Guidelines as per income tax act and rules Deductions Criteria as per
income tax act and rules
Form 12BB This form can be generated after feeding “26C. Furnishing of evidence of claims by employee for deduction of Attached Form12BB copy for
investments on web portal under Actual tax under section 192.— your ref.
Investment tab. (1) The assesse shall furnish to the person responsible for
making payment under sub-section (1) of section 192,
the evidence or the particulars of the claims referred to
in sub-rule (2), in Form No.12BB for the purpose of
estimating his income or computing the tax deduction at
source. For more details attached
(2) Following information need to fill-up in form 12BB. Form 12BB IT department
(A) House Rent Allowance (Name, Address and notification for your ref.
PAN of the landlord/landlords where
the aggregate rent paid during the
current year exceeds rupees one lakh.
(B) Deduction of interest under the head “
income from house property”( Name,
Address and PAN of the lender)
(C) Deduction under chapter VI-A.(Evidence of
investment or expenditure)

15
 FY 2021-2022 -TAX SLABS

After providing necessary exemptions and deductions as per rules defined above, ‘Net Taxable Income’ is
arrived. On the ‘Net Taxable Income’ the following tax slabs are applied to arrive at the ‘Tax Payable’ for the
year.

Category Taxable Income Tax %

Non Senior Male & Female Up to 250,000 0
Senior Citizen (above 60 yrs) Up to 300,000 0
Super Senior Citizen (above 80 yrs) Up to 500,000 0

Non Senior Male & Female 250,001 TO 500,000 5%

Senior Citizen (above 60 yrs) 300,001 TO 500,000 5%

All 500,001 TO 1,000,000 20%

All Above 1,000,000 30%

Education cess “Health and Education cess” is 4%, will be charged on the tax amount.

Surcharge on income-tax

Income From Surcharge

Income To (Rs.)
(Rs.) Rate
0 50 Lakhs 0%
50 Lakhs 1 Crore 10%
1 Crore 2 Crore 15%
2 Crore 5 Crore 25%
5 Crore Any income above 5 Crore 37%

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 Major Budget Highlight for Financial Year 2021-22

1. Budget has given new option to tax with reduced rate forgoing exemption and deduction currently
applicable.

The tax rates are tabulated Below –

Income Slabs New Regime Old Regime

Surcharge
Income From Income To Rate Rate Surcharge Rate
Rate
- 250,000 0 0 0 0
250,000 500,000 5 0 5 0
500,000 750,000 10 0 20 0
750,000 1,000,000 15 0 20 0
1,000,000 1,250,000 20 0 30 0
1,250,000 1,500,000 25 0 30 0
1,500,000 5,000,000 30 0 30 0
5,000,000 10,000,000 30 10 30 10
10,000,000 20,000,000 30 15 30 15
20,000,000 50,000,000 30 25 30 25
50,000,000 And above 30 37 30 37

 There is no change in Health and Education cess which remains @ 4% of Tax plus Surcharge

 Rebate u/s 87A will remain same and will available for income up to 5,00,000/

17
2. Exemption/deduction forgone New Regime are tabulated below:

Sr. Exemption/Deduction IT Provision New Old

No. Regime Regime
1 Leave Travel Assistant 10 (5) No Yes

2 House Rent Allowance 10 (13A) No Yes

3 Special Allowances (CEA, Uniform, 10 (14) No Yes

Reimbursement Like Books and periodicals,
Telephone fuel, Driver etc.)

4 Non Taxable Perquisite (Meal Coupon, Fuel, 17 No Yes

Driver, Gift etc.)
5 Loss from Self Occupied property 24 No Yes

6 Loss from Let out Property 71B No Yes

7 NPS Employer Contribution 80CCD(2) Yes Yes

8 All Deduction under Chapter VI-A and 80C 80 CCD (1B) 80D, No Yes
80DD,80E and 80 C
etc.

3. Standard Deduction of INR 50000 and Professional Tax deduction will not be available in New Regime.
4. Perquisite added if employer contribution to PF + NPS + Superannuation exceeds Rs. 750000/- for a year in New Regime.
5. For Section 80EEA – Additional Interest benefit on repayment of Housing Loan Interest up to Rs. 150000/-, the condition
of loan sanction date allowed till 31-Mar-2022.

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19