A Brief Guidance on Various Tax Savings Investments for FY 2022-23
The Old tax regime
Sl No. Category
1 House Rent Allowance
Sl No. Category
Leave Travel Allowance Exemption
1 Actuals
(Domestic travel only)
Sl No. Category
1 Life Insurance Premium (LIC)
Contribution towards 15 Years Public
2 Self,Spouse,Children
Provident Fund (PPF)
Subscription to National Saving
3 Self
Certificates (NSC)
4 Children Education Tuition Fees
Equity Linked Saving Scheme (Tax
5 Self
Saving Mutual Fund) ELSS
Tax Saving Fixed Deposit of 5 Years
6 Self
with Scheduled Bank (FD)
7 ULIP
8 Pension Policy (80CCC)
9 Sukanya Samruddi
10 NPS 80 CCD(1B)
Sl No. Category
1 Mediclaim Insurance Premium - 80D
Medical Treatment of a dependent
2 Rs.125,000 /-
with disability - 80DD
Deduction in respect of medical
3 treatment - 80DDB for speicified
ailments
Deductions in respect of a person with
4 Rs.125,000/-
disability - Section 80U
Deductions unders section 10(13A)
In whose name
Maximum Limit document can be Documents Required Qualifying Exemption
submitted
Rent Receipt should contain
a) Rent paid for the period
b) Name and signature of landlord
► Actual HRA Earned
c) Complete address of the property
► Rent paid in excess of
Recent 2 months Rent Recepts in ORIGINAL. d) PAN card copy of Landlord is Mandatory if rental
10% Basic Salary
Copy of the Rental Agreement is mandatory, in amount exeed Rs.8,333/- PM
►40% or 50% of Basic Self
case the rent paid is Rs. 20,000/- above per Note: 1) Rent Receipts without the name and address of
(Incase of Metro Cities)
month. the owner will be rejected.
Least of the above is
2) If there is a change in the rent paid amount, then
Exempt
additional one rent receipts for each change is required.
3) Photocopy of rent receipts are not considered as
valid proof. Sample rent receipt format is enclosed.
Deductions under section 10 ( Leave Travel Allowance)
In whose name
Maximum Limit document can be Documents Required Qualifying Exemption
submitted
a) Flight Tickets should be supported by the Boarding Pass.
Tickets without boarding pass will not be considered.
b) Employee should be part of the travel.
c) In case of travel by Taxi - Fare equivalent to the First
Self,Spouse,Children &
Original Travel Tickets along with LTA declaration class a/c train fare for the distance of the journey by the
Dependents
shortest route only will be considered as exemption.
d) This exemption is limited to the actual expenses incurred
on the journey which inturn is strictly limited to expenses on
air fare, rail fare and bus fare only.
Deductions unders section 80C
(Maximum Deduction capped to Rs.1.50 Lakh inclusive of PF)
In whose name
Maximum Limit document can be Documents Required Qualifying Exemption
submitted
Photocopy of Premium Paid receipt along with
(a) Late payment fees will not be considered. (b)
Self,Spouse,Children Insurance policy Annexure attached. (Format
Policy from any approved company by IRDA.
Attached)
(a) PPF Account can be in the name of Individual / Spouse
Photocopy of Pass Book & Deposit Receipt
/ Children.
Photocopy of NSC (a) NSC Certficate can be in the name of Individual..
(a) Only amount mentioned as "Tuition fee" in the fee
Receipt will be considered for deduction. (b)
Donations, Capitation fees, Uniform fee, Sports fee & Bus
Children Photocopy of receipt of fees paid
fee etc., are not allowed for deduction. (c)
Children Tuition fees paid receipts restricted to a max of 2
Rs.150,000/- children
Photocopy of receipt of amount paid
(a) Term Deposit for a minimum period of 5 years with a
Photocopy of Deposit Receipt
scheduled bank are eligible for deduction
Self,Spouse,Children Photocopy of receipt of amount paid
Self Photocopy of Premium Paid receipt
a) Any of the parents of the girl child.
b) Any legal guardian, in case of parents not able to
Daughter's The Pass book from Bank or Post Ofiice contribute or parents not alive anymore.
c) Only one person contributing to Sukanya Samriddhi
Account can claim tax exemptions under the scheme.
Rs.50,000/- Self Copy of NPS passbooks & Statement (a) NPS Account can be in the name of Individual.
Deductions unders section 80D to 80U
In whose name
Maximum Limit document can be Documents Required Qualifying Exemption
submitted
a) Limited to Rs.25000/- In case of Individual, Spouse & Children.
b) Limited to Rs.50000/- In case of Individual, Spouse, Children
Self,Spouse,Children &
Rs.75,000/- Copy of Premium Receipt and parents below 60 years.
Parents c) Limited to Rs.75000/- In case of Individual, Spouse, Children
and any one parent above 60 years
Photocopy of certificate (Form - 10-IA) issued by No benefit if disability is < 40%
Spouse,Children &
the competent medical authority in a Government Rs.75000/- if disability is >= 40% & <80%
Dependents Rs.125000/- if disability is >= 80%
Hospital specifying the % of disability
Photocopy of certificate (Form - 10-I) issued by (1) The deduction allowed is equal to the amount actually
Self,Spouse,Children &
Rs.1,00,000/- the competent medical authority in a Government paid or Rs. 40,000 whichever is less. Incase of Senior
Dependents
Hospital specifying the % of disability Citizens Rs. 1,00,000/-.
a) No benefit if disability is < 40%
Rs.75,000/- if disability is > 40% & <=80% Rs.125,000/- if
disability is >80%. b)
Photocopy of certificate (Form - 10-IA) issued by Certificate issued from a government doctor (who is a
Self the competent medical authority in a Government physician, a surgeon, an oculist or a psychiatrist)
Hospital specifying the % of disability which is issued in FY-2021-22 in the Form 10-IA format is
required to be submitted. If the certificate date is before
the beginning of this financial year then the exemption will
not be given.

Interest on loan taken for higher
5 No Capping of maximum limit Self,Spouse &Children
education - Section 80E
Interest paid on home loan for
6 Rs.1,50,000/-
affordable housing - 80EEA
Interest paid on loan taken for the
7 purchase of electric vehicle (Auto
Loan) - 80EEB
Provisional certificate pertaining to current
financial year only (Apr ’22 – Mar ’23) from the
Bank / Financial Institution specifying Break up of
principle and interest paid
Provisional certificate pertaining to current
financial year only (Apr ’22 – Mar ’23) from the
Self
Bank / Financial Institution specifying Break up of
principle and interest paid
Provisional certificate pertaining to current
financial year only (Apr ’22 – Mar ’23) from the
Rs.1,50,000/- Self
Bank / Financial Institution specifying Break up of
principle and interest paid
a) Interest paid for the first 8 years on loans taken for
Higher Education such as
Engineering/Medical/Mgt/Graduate
a) Should not own any other house property on the date of
the sanction of a loan. b) Stamp
duty value of the house property should be Rs 45 lakhs or
less. c)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.
a) The loan must be sanctioned anytime during the period
starting from 1 April 2021. b)
‘Electric Vehicle’ here means a vehicle which is powered
exclusively by an electric motor whose transaction energy
is supplied exclusively by transaction battery installed in the
vehicle and has an electric regenerative braking system.

Interest on Borrowed Capital for Computation of Income From House Property [Section 24(b)]
In whose name
Sl No. Category Maximum Limit document can be Documents Required Qualifying Exemption
submitted
a) Provisional certificate with breakup of interest a) Provisional certificate pertaining to current financial year
and principle from the Housing Finance Company (April 2022 to March 2023)
/ Bank. b) Pre-EMI interest (EMI paid before occupation of the
Loss on Self-Occupied house property (b) In case of Joint loan, declaration specifying house) is deductible in 5 equal installments starting from
1 Self
(Housing loan interest) Capped to a maximum of the % of benefit claimed by the individual.(Format the year when the construction is completed or property is
Rs.2,00,000/- only i.e. Total Attached) c) acquired. c)
amount allowed for a PAN of loan lender / bank is mandatory to furnish Interest and Pre EMI-Interest can be claimed only if the
property (Self & Let out to claim the housing loan benefit property has been occupied before 31st March, 2023;
both together) is (a) Provisional certificate pertaining to current
Rs.2,00,000/- financial year (Apr ’22 – Mar ’23) with breakup of
interest and principle from the Housing Finance a) If the premises is left vacant/occupied by family, as per
Loss / Income on Let out House
2 Self Company / Bank. Section 23(1)
Property (Housing loan interest)
(b) Form 12C - Format Attached (b) Notional rent to be taken as municipal valuation.
(c) Computation of Loss/Income as per rule is
mandatory. Calculation Template is attached.

Income Tax Slabs for FY 2022-2023 (old tax regime)

Income Slab Tax Rate
Upto Rs.2,50,000 NIL
Rs.2,50,001 to 5,00,000 5%
Rs.500,001 to 10,00,000 20%
Rs.10,00,001 and above 30%

1. Rebate under section 87A - Net taxable income does not exceed Rs. 5,00,000) can
avail rebate under section 87A. The amount of rebate is 100 percent of income-tax or Rs. 12,500,
whichever is less.

2. Secondary & Higher Education cess at 4% will be added on above mentioned TDS amount.
3) Surcharge: 10% If taxable income > Rs.50 Lakhs, 15% If taxable Income > 1 Crore, 25% If
taxable Income 2 Crore, 37% If taxable Income >5 Crore.

New tax regime

When you choose the New Tax Regime, you will have to forgo some exemptions [such as Leave Travel Allowance (LTA), House Rent Allowance (HRA), etc] and deductions available under chapter VI A of the Act
that grant deductions under Section 80 [such as 80C, 80CCC, 80CCD, 80D, 80DD, 80E, 80EE, 80G, 80GG, 80GGA, 80GGC, etc]. Even the Standard Deduction under Section 16 [which is currently Rs 50,000] available
to salaried individuals and the deduction on home loan interest, under Section 24(b) will be disallowed. Around 70 exemptions and deductions have been removed in the New Tax Regime.

Income Tax Slabs for FY 2022-2023 (New Tax Regime)

Income Slab Tax Rate
Upto Rs.2,50,000 NIL
Rs.2,50,001 to 5,00,000 5%
Rs.500,001 to 7,50,000 10%
Rs.7,50,001 to 10,00,000 15%
Rs.10,00,001 to 12,50,000 20%
Rs.12,50,001 to 15,00,000 25%
Rs.15,00,001 and above 30%

1. Rebate under section 87A - Net taxable income does not exceed Rs. 5,00,000 can
avail rebate under section 87A. The amount of rebate is 100 percent of income-tax or Rs. 12,500,
whichever is less.

2. Secondary & Higher Education cess at 4% will be added on above mentioned TDS amount.
3) Surcharge: 10% If taxable income > Rs.50 Lakhs, 15% If taxable Income > 1 Crore, 25% If
taxable Income 2 Crore, 37% If taxable Income >5 Crore.