All you need to know about

TAX EXEMPTIONS
Frequently Asked Questions
Is it mandatory to provide PAN details of the landlord?
Yes, PAN details of landlord is mandatory to claim the HRA exemption,
if the rent paid is more than Rs 1 lakh/Annum. (As per Form 12BB notification,
PAN details are to be submitted on a mandatory basis).

Can I claim both HRA & House Property exemption?

Yes, you can claim both HRA and House Property if you stay in a rented house for employment
purposes, and your house property is in another location. Both can be claimed only
if the individual has genuine reasons for having 2 accommodations in the same city.

How HRA exemption gets computed?

As per the income tax rules, the tax-exempt part of the HRA (House Rent Allowance) is
the minimum of the following amounts:
1) Actual HRA component of salary.
2) 50% of basic salary if he resides in (Metro city) Delhi, Chennai, Kolkata, or Mumbai;
40% if his residence is in any other city.
3) Actual rent paid less 10% of basic salary.
Please refer the Tax statement / Tax slip for HRA exemption.
In the below navigation Path: Login to ESS>> Pay >> Tax Info >>
Click "View Tax Statement" button

Can an individual claim HRA exemption for the period of previous employment with
their current employer?
HRA exemption for the period of previous employment cannot be claimed with
the current employer. It is already adjusted in income under Section 10. Note: If an individual
has not claimed HRA exemption with previous employer, the current employer is
not authorised to provide HRA exemption.

Does an employee need to submit rental agreement/ rent receipts (monthly/ quarterly/
half-yearly/ yearly)/ both?
Rental agreement is employer-specific (and non-mandatory, as per income tax). However,
rent receipt should be provided. Your rent receipt should cover the period from
April to December. Frequency of rent receipt can be monthly/ quarterly/ half yearly/ yearly.

Note: New joiners need to submit rent receipt from their joining month.
Does one need to provide both landlords’ PAN if they changed
house during the financial year?
Yes, one would need to provide the respective landlords’ PAN for the month
if consolidated rent for the financial year exceeds 1 lakh rupees.

Is affixing revenue stamp in the rent receipt mandatory?

Yes, Revenue stamp is mandatory in the rent receipt if the rent is paid in cash for
more than INR 5,000/- per month, except for Karnataka and Jammu & Kashmir locations.
Revenue stamp is not required when rent receipt clearly indicates the value of rent paid is
above Rs 5000 per month and states the mode of payment as Cheque / NEFT or IMPS.

Why are the previous months’ tabs disabled in the HRA section?
HRA is enabled as per the date of joining. Prior to the date of joining,
data cannot be entered.

What should an individual do if landlord does not have a PAN,

but the system forces them to submit the PAN?
As per the Income tax norms, for annual rent of more than 1 lakh rupees
the landlord PAN is mandatory. If your landlord does not have a PAN,
you can even update landlord Aadhaar number instead of PAN.

Do I need to submit rent receipt with revenue stamp if I paid the rent through
cheque/ NEFT/ IMPS or any online transfer?
Rent receipt is mandatory for HRA exemption. Revenue stamp is not mandatory if the mode of
payment is mentioned as online (cheque/ NEFT/ IMPS) in the rent receipt.

Why my city/location is not available in the HRA dropdown?

Only Metro cities (Delhi, Chennai, Kolkata, or Mumbai) will be listed in the dropdown,
all other cities should be mapped under non-metro.

How can I declare rent paid and update my landlord’s PAN if there are two landlords?
If there are two landlords add separate entries respectively.
Example, Landlord 1 from Apr-Jun & Landlord 2 from Jul-Sep.
Can I claim house property exemption before possession?
As per the IT norms, house property exemption should be claimed only
after possession. The possession letter is mandatory.

Do I need to submit the possession letter for each financial year?

Possession letter is mandatory as proof only for the first financial year. You may submit the
possession letter from next financial year based on your employer specification.

What is the maximum exemption limit for house property?

Loss from house property is restricted up to Rs 2,00,000. Loss of more than Rs 2,00,000
should be carried forward up to the next eight (8) financial years.

If I have more than two house properties (not rented), what will be the tax treatment?
From 2019 onwards, if an individual is in possession of more than one self-occupied house
property or vacant house property or house property occupied by the individual can choose
two properties of his choice as self-occupied. Any other properties would be deemed as let
out and notional rental income would be calculated accordingly. Income Tax doesn’t recognize
vacant apartment as an option. A vacant apartment must be treated as "deemed let-out".
Note: In case of deemed let out, a nominal value for rental income must be shown.

Which loan date do I need to enter in the house property (HP) column?
My home loan was transferred from one financial institution to another in the current FY –
in this case, how can I enter both institution details in the HP column?
Enter the first financial institution loan taken date in the loan date column.
Enter the latest financial institution’s details (Name, PAN & Address), and under principal &
interest amount you will need to mention the consolidated amount of both the institutions.

Do I need to submit all the previous years’ interest certificates for

pre-construction interest?
Yes, you need to submit all previous years’ interest certificates as proof.

What is the maximum deduction on account of interest allowed for self-occupied?

2lakhs is the maximum exemption for self-occupied.
What type of amount can be considered for claiming deduction of
house loan principal u/s 80C?
The following can be considered for claiming deduction of house loan principal u/s 80C:
1. Stamp duty
2. Registration fee
3. Other expenses incurred for the purpose of transfer

When and where should I declare stamp duty/ registration charges?

Stamp duty and registration fees should be claimed for exemption in the same paid
financial year. This cannot be carried forward to the next year. You should add the stamp duty
and registration amount in their respective columns.

What is the tax treatment for pre-construction period interest & principal payment?
For a maximum of 1/5th of the pre-construction period, interest will be allowed as deduction,
subject to maximum ceiling of Rs 30,000 or Rs 2,00,000. Any principal amount paid
during the pre-construction period cannot be claimed.

Is 80EE exemption over and above the limit for exemption of house property (INR 2,00,000)?
When can I claim the additional benefit of 80EE?
80EE exemption is over and above Sec 24 (Rs.2,00,000) limit.
80EE provides an additional exemption up to a maximum limit of INR 50,000/- for your
self-occupied property. If the following conditions are met:
• First-time home buyer in FY 2016-17: i.e., the assesses doesn’t own any house
property on the loan sanction date.
• Loan was sanctioned between 1 April 2016 and 31 March 2017.
• Loan sanction amount doesn’t exceed 35,00,000.
• Value of house property doesn’t exceed 50,00,000.

Why is 80EE disabled under house property?

The 80EE column will be enabled if your “Loan Taken” date is between
April 2016 and March 2017.
What is the maximum limit for 80EEA? Why is 80EEA disabled under house property?
Am I eligible for Sec 80EE or Section 80EEA?
The maximum limit for Section 80EEA is Rs. 150,000. For 80EEA, an individual should
satisfy the below conditions:
Individuals can claim an additional interest of Rs.150,000 in case of self-occupied property, if
the following conditions are fulfilled:
• The individual has taken loan in between 1 April 2019 and 31 March 2022
• The value of the house property does not exceed INR 45,00,000
• Individual should not own any residential property as on the date of sanction of loan.
Only when you satisfy the above conditions, 80EEA will be enabled.
Note: The section claim of 80EEA is over and above Section 24 interest claim.
The overall net loss to be claimed under house property (irrespective of let-out or self-occu-
pied or any number of house properties) would be restricted to Rs. 2,00,000 alone. No amount
exceeding Rs. 2 lakh would be eligible for the claim.
As per the new budget employee can claim either Sec 80EE or Sec 80EEA only.
What are proof required for electric vehicle loan (80EEB)?
Provisional certificate with break-up of principal and interest, Document in the name of self,
Copy of R book & driving license
I have taken electric vehicle loan will it be allowed for tax exemption?
An individual who taken up a loan for purchase of electric vehicle from any
financial institution:
Loan sanction date is in between 1 April 2019 to 31 March 2023,
Such an individual can claim interest deduction on such loan payment up to
Rs.1.5 lac for both 2 wheeler and four wheeler
Are projections allowed under any section? My investments are due after the
submissionwindow closes. How can I claim exemption?
• Projection’ is a term used to refer to a future payment related to an investment by
you that is due for
• Payment after closure of the investment proof submission window. Projections
are allowed, subject to
• Authorization by your HR/ Payroll Coordinator and are typically allowed only for
HRA, LIC, ULIP,
• Pension plan, ELSS/Mutual funds. If authorized, you will find the Projection
option under the
• Actual/Declaration drop-down when creating a new entry in the respective section
of the Tax
• Submission page. Please submit the last Financial Year receipts to claim exemption.
Projections are
• allowed only for payments due in the current financial year.
• If you have submitted last year proof as projection/proof of future payment and
the same has been
• approved, you do not need to resubmit the current year receipt unless mandated
by your organization.
• Projections are not allowed for any reimbursement or flexi claims such as
broadband, telephone or
• mobile, LTA, fuel, vehicle maintenance, driver salary etc.
• Projections are allowed only under
• House Rent Allowance
• Life insurance
• ULIP
• Pension plan
• ELSS/ Mutual funds

Why am I not able to view my previous employment income tab?

This tab will be available only if your Date of Joining (DOJ) is in the current FY. Please verify
your DOJ displayed onscreen and raise a service request if it is found to be incorrect.
Where should I get gross income to update in tax calculator?
If you are a New Joiner, please refer to your offer letter issued by employer.
Your gross salary is different from your CTC. Gross salary amounts to all values that get paid
out in cash or kind to you in the financial year. It does not include any amounts that your
employer may contribute towards social contribution or retiral benefits, like PF, gratuity, and
superannuation and so on. If you are an existing employee, the gross income is already
mentioned in the tax calculator. It is taken from your tax computation as processed
by ADP for the current year. Please verify the same with tax slip/ tax statement.

How has my tax been computed? Can you please share the workings?
Please refer the Tax Statement for details of your tax computation.
Path: Pay -> Tax -> Click "View Tax Statement" button.
How is Leave Travel Allowance (LTA) calculated?
Conditions for LTA calculation:
Travel by Air: An amount not exceeding the Economy Class fare of the National Carrier by
the shortest route to the place of destination.
Travel by Rail: An amount not exceeding the air-conditioned First-Class Rail fare by
the shortest route to the place of destination.
Travel by any other mode (cab) to areas not connected by rail: If a recognized
public transport system exists, First Class or deluxe class fare on such transport by
the shortest route to the destination.
If a not recognized public transport system exists, air-conditioned First-Class rail fare for
the distance of the journey by the shortest route, as if the journey has been performed by rail.
Calculation for cab/ taxi travel: First class AC fare of rail for the no. of kms * 2 (round trip) *
no. of passengers travelled = Amount approved.

Can I claim last year’s travel bill this year as the block year is the same?
As per section 4 of Income Tax Act, income tax shall be charged for a "Financial Year".
Section 3 of Income Tax act defines "Financial Year" as period of twelve months commencing
on the 1st day of April every year.
Sections 3 and 4 are in the definition section and supersede all other sections.
Thus, after reading section 3 and 4, tax is calculated for a financial year only
i.e., from 1st April to March 31. For LTA section 10(5) is read with rule 2B of Income Tax,
provides the rules on how to claim LTA each year for Tax exemption calculation.
This rule allows 2 trips to be availed in a block of 4 years. Also, where such travel concession
or assistance is not availed of by the individual during any such block of four calendar years,
an amount in respect of the value of the travel concession or assistance, if any, first availed of
by the individual during first calendar year of the immediately succeeding block of
four calendar years shall be eligible for exemption.
This doesn’t mean that expenses on any 2 trips can be claimed at any given time.
It means that the value of claim can be carried over for a period of 4 years. The exemption will
be provided for the travel that has been completed in the current financial year
Note: Income Tax is always read in totality and not as per single section or single lines.
Thus, Section 10(5) with section 4 and 3, if the travel is undertaken in the financial year,
then the same needs to be submitted by that year for proper tax calculation as well.
34 I have already provided scanned copies of bills. Do I need to provide hard copies of
bills as well?
Hard copies of bills are not required if your employer has allowed
submission of scanned copy of bills.

Can I claim LTA cash scheme for the current FY?

This is a one-time scheme and can be exercised and end-cashed only during
the FY 2020-21. In simple terms, only the amount spent before 31st of March 2021
can be tax exempted. This has not been extended for further financial year.

Can I claim electronic purchase made, instead of LTA? Please provide me details
for LTA cash scheme.
LTA cash scheme has been discontinued after March 2021. This scheme is not applicable in the
current year.
Investment
Declaration/Submission
How do I submit investment proofs after the submission cut-off, or if there is
no other submission window?
There is no provision to submit investment proofs after submission cut-off.
Please submit in the next available submission window.
For investments made after close of all submission windows within an FY,
consider submitting during your individual tax returns.

Can I change my tax regime during fiscal year?

You will not be able to change your tax structure once the selection is made
during this financial year. However, while filing the ITR you can change the
structure if you wish to do so. Having said that, an individual employee might
get a notice requesting the details and supporting documents since there might
be a mismatch between ITR and Form 16.

I am unable to view the Submit button/ Why is the Submit button disabled on
the investment page?
The Submit button will be available in the summary page once you add/ modify at
least one entry.

I’m unable to update investment details in ADP portal.

If you have chosen the new tax regime you will not be able to update your
investment details (Except income from house property and income from other sources)
in the ESS portal for the current fiscal year.

When will the page be available for submission of investment details?

The cut off dates will be visible in the Home >>> Tax Proof Submission card.
It will show the last date for submission of investments. The next submission dates
will be reflected under below navigation.
ESS >> Tax submission page >> click on the `I’ icon

I am currently leaving my employer and I would like to provide my investment proofs.

How do I need to submit my proofs?
The intention of providing the proofs in advance before leaving your employer is
not to have any tax deductions. Go to Tax submission >> Add components>>Select the
investments >>Type of submission as actual >> Upload proofs. If you are not able to submit
your proofs in the portal, check for the submission process internally with your team.
Exemption amount reflecting under Tax calculator is not correct from my actual
investment proof submission.
Exemption amount reflecting under Tax calculator was based on your last investment
submission. Once payroll completed for the current month. Your actual investment details
will be updated in the tax calculator.

If my investment proof submission is rejected, how do I re-submit a

correct document?
If the submission window is still active, please follow the below:
1. If your investment entry was fully rejected, i.e., the full value of investment has
been rejected, you need to make a new entry with the correct details again and upload a
valid investment proof document.
2. If your investment entry was only partially approved, i.e., only a portion of your
investment value is approved, you need to delete the partially approved entry and make
new entry with the correct details again, then upload a valid investment proof document.
If the submission window is closed, and you are unable to make any corrections,
please reach out to your payroll coordinator to discuss options.

When will my actual submission be validated? Until it is validated,

can the declared investment details be considered for tax computation?
All the entries made in the investment details page will be considered for
tax computation until the financial year end. During the financial year end,
approved proofs alone will be considered for computation.
Investment validation will be done only at the end of the year you will also receive
the notification once the validation is completed in the portal. However, investments
declaration will be taken into consideration for tax exemption during the lean period.
During the financial year end, approved proofs alone will be considered for computation.

How do I download the PDF copy of my investment submission?

To view all entries submitted under Income Tax, download the Consolidated View Report
by clicking the Download Reports icon before “Add components” tab.
Note: In order to see the consolidated report, at least one component
should be under "Actual".

Where can I see the validated results of the proofs I have submitted?
To view the validation results/ status, navigate to the Tax submission menu.
Status of validation would be available against every line item submitted.
Click on the `eye’ icon for more details of the line item.
Where do I declare 80DDB/ 80G/ 80TTA?
• Proof submission for 80G & 80DDB components will be made available solely at the
discretion of your employer. If these components are not visible in ESS portal, you will have
to claim exemption while filing your individual returns. a) 80G exemption for Donation
(Documents can be submitted in ESS portal>> Tax Submission >> Add Component >>
Donation) b) 80DDB exemption for Specified diseases and ailments (Documents can be
submitted in ESS portal>> Tax Submission >> Add Component >> 80DDB).
https://incometaxindia.gov.in/Rules/IncomeTax%2520Rules/103120000000007232.htm
• Please refer for details on the specified diseases and ailments that are considered under
section 80DDB.
Where can I claim medical hospital bills under section 80D?
If any member in your family is:
• More than 60 years (senior citizen)
• And have no medical insurance policy in their name
Then medical bills can be claimed under 80D upto the threshold limit.
I have paid the medical insurance premium in advance for 3 years, how can claim
the same?
The premium paid can be claimed on pro-rata basis with a threshold limit.
Please note: The pro-rata scheme is only available under section 80D.
What is the maximum limit for Mediclaim and Preventive Health Check-up?
Mediclaim deduction is restricted to the following amounts, inclusive of
preventive health check-up:
1. Rs 25,000 - Self/Spouse/Children
2. Rs 50,000 - Self/Spouse (Senior Citizen)
3. Rs 25,000 - Parents
4. Rs 50,000 - Parents (Senior Citizen)
The maximum limit for Preventive Health Check-up is Rs 5,000/- (including self,
spouse, parents and children).

Do I need to enter Mediclaim (parental/ self/ spouse/ child) made through salary in
the Proof/Declaration page?
Mediclaim paid through your salary has already been taken into consideration for your tax
exemption. There is no need to enter the details once again in the Proof/ Declaration page.

Can all deposits (irrespective of maturity period) be considered for exemption?

Only Fixed and Post Office deposits with a maturity of five (5) years and above shall be
eligible for deduction under Section 80C of the Income Tax Act.
I am paying tuition fee for 3 children. Is there any restriction with respect to the no. of children?
Can coaching fee paid for private tuitions be considered astuition fees for deduction?
Yes, there is a restriction. Tuition fee is allowed only for 2 children. No, tuition fee is allowed
only for full-time education. Fee paid for private tuitions is not allowed as deductions.

Is distance learning course fee allowed as deduction for tuition fees?

No, distance learning courses are not allowed as deduction for tuition fees head. 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.

Can I claim exemption on ULIP / ELSS for dependents?

ULIP/ ELSS exemption is allowed only for self and not for dependents.

Do I need to enter NPS contribution made through salary in the investment page?
You do not need to enter the NPS contribution through salary in the declaration/ proof
page, it has already been considered for exemption.

What is the National Savings Certificate-Accrued Interest (NSCAI) and

what proof do I need to submit for this?
The NSCAI is interest on the previous years’ NSC purchase. As per the Income Tax Act,
interest received for NSC will be included in your taxable income. You need to provide a
photocopy of all NSC certificate(s) for the previous years as proof for this,
based on which the interest will be calculated.
What is the treatment of National Pension Scheme (NPS)?
Employer NPS contribution must be first shown as income and then as deduction.
Employee Contribution 80CCD (1) - No Tax treatment - Contribution or 10% of
salary whichever is lower, restricted to INR 1.5 Lakh
Employer Contribution 80CCD (2) - Taxable as income first - Contribution or
10% of salary, whichever is lower
Individual Contribution 80CCD (1B) - Contribution of INR 50,000 which is
over and above INR 1.5 Lakh.

Can recurring deposits be considered for exemption?

Recurring deposits are not eligible for deduction under Section 80C of the Income Tax Act.

Are transport charges, hostel charges, mess charges, library fees, parking charges incurred
for education allowed as deduction? Is tuition fees payment allowed for studies abroad?
No, the above payments are not allowed as deduction for tuition fees head.
Tuition fees is not allowed for studies abroad. It is only allowed for studies in India.

Can I claim PPF for dependents?

PPF is eligible only for self, spouse and children.

Can I claim life insurance for my parents?

No, tax exemption is allowed only for self, spouse and children.
Life insurance for parents and other dependents are not eligible for exemption.

Can I claim previous years’ National Savings Certificate (NSC) for

the current financial year tax exemption?
No, only the NSC purchased in the current financial year is eligible for tax exemption.

Is tuition fee allowed for part-time education or full-time education?

Tuition fees is allowed only for full-time education.

Where can I claim my National Pension scheme (NPS)?

If the NPS contribution is deducted from salary, then the input would be taken
and considered through payroll. But if the NPS is contributed through bank
individually, then you can submit the same through NPS tab under ESS portal
 Where should I find in which regime my tax was computed for a month?
In tax statement, under the label of `Month’, you can find the tax regime
(traditional/new) details.

Why is other income being considered for taxable income?

The NSCAI (interest) is being considered under other sources of income. As per the Income
Tax Act, the interest received for NSC is part of your taxable income. This will also be
considered under 80C exemption as per the IT declaration. Along with this if you have
declared other income on the tax submission, which will be considered for taxable income.

I have taken educational loan for my brother; will it be allowed as deduction?

No, educational loan is allowed only for spouse or children or the student for whom he is the
legal guardian. Deduction will be allowed for the first year andnext 7 years i.e., deduction
allowed for 8 years.

70
74 Can I claim tax exemption for my in-law mediclaim?
No, tax exemption under Sec 80D will cover only for self, spouse, children & parents.

How many dependent I can claim for under section 80DD.

An individual can claim of any number of dependent (as defined by income tax act).
Each dependent can be claimed as having a disability or severe disability
(75,000 OR 1,25,000 respectively) depending on the case.

If I haven’t yet paid my medical premium, can it be claimed on the basis that it is
due this year?
No, medical premium deduction can only be claimed if premium is paid and not if it is
due to be paid. You must produce the payment receipt to claim this deduction.

What income should I enter in previous employment?

Enter the previous employment Income after Sec 10 from your full and
final tax computation for the current financial year (from April to date of leaving).

Why is 80C deduction not considered while computing tax along with
previous employer income?
For previous employer income computation, the income is to be taken after section 10.
The investment claim is made under 80s which can be submitted in the current company
where the same is validated and the claim is taken for proper tax exemption and tax
calculation. ADP will not consider any previous 80C or any section claim to avoid
miscalculation or double exemption.
 Can VPF be considered with previous employment PF?
Yes, you can mention the PF & VPF amounts together in the previous employment PF tab.

How much exemption I can claim under disability u/s 80U?

What are the documents required?
Deduction is allowed for a person suffering from a permanent physical disability or
mental Retardation under sec 80U. The amount of deduction is:
a. 75,000 to a person with disability (above 40% and less than 80%)
b. 1,25,000 to a person with severe disability (Above 80%)
Documents required
a. Form 10IA
b. As per recent amendment, medical prescription providing all details of disease and
patient is also allowable document for claim instead of Form 10IA.

New Tax Regime

76
Why am I not able to add other investments except house
property?
Under the new tax regime, traditionally available tax exemptions are not allowed. Thus, the ESS /
ADP Portal will not have options to add any components other than income from house property.
The following exemptions are not allowed under the new tax regime:
• HRA
• Interest on Self Occupied House Property under Section 24
• Chapter VIA deductions which includes:
• 80C – LIC, NSC, Child Tuition fees, PPF, SSY, PF etc.
• 80D – Medical Insurance/ Mediclaim
• 80U & 80DD- Self & Dependent Disability
• 80G – Donations
• 80EE – Interest on Housing Loan
• 80 E – Education Loan
 Can I change my tax regime during fiscal year?
You can change your tax regime in the beginning of the financial year. Your tax will be
recomputed for the entire year if you choose traditional tax regime. Once you select the tax
regime, it cannot be changed with in the financial year, although you have an opportunity
to do so while filing the ITR. The tax regime considered for computation can be viewed in
the consolidated tax statement.

Which tax regime can I choose?

ADP will not suggest which tax regime to choose. You can use the tax calculator that simulates the
tax for the current FY under both the regimes and helps you make a choice.

80 What happens if I don't choose my tax regime for the fiscal year?
New tax regime is the default tax regime. Thus if you don’t make a choice, your tax
deduction will be calculated based on the new tax regime by default.

Are reimbursements (telephone, gift, child support) exempted in new tax regime?
Tax exemption on reimbursement claim is not allowed under the new tax regime, even though
reimbursement is part of your salary structure. But the process to claim the reimbursement is same
irrespective of standard reimbursement components or Flexi benefit plan. You can submit your bills
in the ESS Portal >> Claim Submission >> Add components.

I have opted for New Tax Regime. Do I need to submit my claims?

There is no need to submit any investment claims if you have selected new tax regime. But
in case you have a home loan for let out property, you need to submit the same for
necessary claims and deductions.
s

Thank you