Proof of investment guidelines

Financial Year 2019 - 2020

Online
Submission

Dell EMC India Payroll Team

Internal Use - Confidential
 Section 24B
Section 80D Limit : Rs. 2 Lakh
Section 80C
{Self-Occupied or Let-out
Limit : Rs. 25K Property}
Limit : Rs. 1.5Lakh
/50K
(New) Section -80EEA (2019-
20 New Loan only) *
Additional 1.5Lakh over and
Revised Section 87A above 2 Lac

Standard
Eligibility - Taxable Deduction^ Section 80CCD(1b)
Income up-to 5Lakh
NPS Additional Benefit
Limit : Rs 50,000 Rs.50,000
Rebate on Tax up-to
Rs.12,500

Section 80E (New) Section 80EEB

Limit on Interest : Electric Vehicle Loan Interest
N/A Limit : Rs. 1.5Lakh

*Loss under the Head 'Income from House Property' is limited to Rs 2 Lakh only . No Notional Rent on Second Self-Occupied Property
^ Standard Deduction for Salaried/Pensioners Only

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 Index

Particulars (Click on the below line items to go directly) Sections

 POI Process overview NA
 General Guidelines NA
 House Rent Allowance 10
 Housing Loan - Section 24B 24
 80EEA Additional Housing Loan Benefit - Section (24b) 24
 Previous Employment (PE) Declaration Chap VI-A
 80C Investments… Chap VI-A
 80CCD - NPS Contributions Chap VI-A
 80D-Mediclaim Insurance Chap VI-A
 80E- Interest Paid on Education Loan Chap VI-A
 80DD-Medical Expenditure for Handicapped Dependents 80U –... Chap VI-A
 80DDB-Medical treatment for Dependents with specified Dis... Chap VI-A
 Section 80EEB - Loan taken to purchase Electronic Vehicle Chap VI-A

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 POI Process overview

Employee to Payroll to Yes Payroll to

All
submit Online Access & Good?
approve in the
Portal Validate portal

Employee to Payroll to No
Employee Get
resubmit Reject mail
(if any) Partially/Fully confirmation

• Kindly refer the “POI Procedure” document on, How to submit POI in the tool.
• Employee Queries are addressed only through Query Management System Payroll to
supported by POI Vendor. Employees are advised to Raise a query ONLY in the
consider POI &
vendor tool.
recalculate Tax
• Employees are requested to NOT to raise MY HR Case through Dell Services-
Now tool.
• All documents has to be submitted only through the POI tool. No other mode of End
submissions are accepted/allowed.

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 General Guidelines

1. Tax benefits are provided only to the proofs submitted. No Future payment declarations are allowed (Except HRA). Future payments
which are not claimed in POI window, can be claimed while filing individual tax returns. You may have to claim tax refund from the
IT department.
2. Incase of investments that are due post cut off date, we suggest you to pay the same in advance and claim the tax benefits.
3. Supporting declarations are mandatory to extend the tax benefit. Ensure to submit all the relevant documents to get the benefit.
4. Team members have to update the documents as prescribed in the guidelines. It should be clearly visible, readable and should
contain all required information.
5. Kindly Note that this document contains only the information that is published and in circulation as of now. The Guidelines and
Documentations are always subject to change based on the Salary Circulars that gets issued by Income Tax authorities & DDO’s
time to time. The major changes if any in the guidelines would be communicated once the same is received by the payroll team
6. The soft copy documents submitted for POI purpose will not be returned. Kindly keep a copy of the same.
7. Updating of Family Members detail in the POI portal is Mandatory to get Tax Exemptions for any benefits claimed for family
members.
8. Note that, the approved POI information will be considered in January ’2020 Pay-cycle. The current Income Tax Declaration will be
considered only till December 2019 Pay cycle.
9. In case of any unclear information provided for any of the benefits, payroll team can always demand for additional proofs/
documents/ certificates. This information has to be provided before the specified timelines. Else benefits will be disallowed.

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 House Rent Allowance
Eligibility
• Employee self-occupied Rented Accommodations only.
• Declaration of HRA in BOA/FBP plan is mandatory to claim the
tax benefit.
• Rent Agreement should exist between Owner and Tenant.
• HRA Benefit is calculated from the date of joining or 1-Apr-19
whichever is later.
Mandatory Documents/Information
• Original Rent Receipts (use consolidated rent receipt format)
pertaining to current financial year (Apr’19 to Dec ‘19). Enclosed
HRA declaration Form is mandatory to get the Future Payment
benefit for the month of Jan’2020 to Mar ‘2020 (The benefit will be
extended on the actual payment made for December)
• Rent Receipt MUST contain
- Rent paid for the period
- Name and signature of landlord
- Complete address of the property
- Address of the landlord
- PAN of Landlord (in case monthly rent is > Rs.8333/-

Notes
• If HRA & Loss on self-occupied property are claimed for the same period & same city, then HRA rent
will be disallowed for the overlapping period.
• Maintenance and electricity charges are not considered. Only actual rent paid will be considered
• Tax benefit on HRA is calculated as; least of (1) Rend paid minus 10% basic (2) HRA from BOA (3) 40%
of Basic (50% incase of metro city)
• HRA cannot be claimed more than one house stating “occupied by parents/family members”. In such
case, benefit is allowed only where employee staying & paying the Rent.

Attachments

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 Housing Loan - Section 24B
Mandatory Documents/Information:
Eligibility:
• Latest Provisional Loan certificate from the bank for current
• Loan should be active during the current FY
financial year with below information
• Employee should be part of the Loan
(a) Interest Paid/Payable (b) Name of the Lender (c) Address of
• House should NOT be under construction mode until 31-Mar-
the Lender (d) PAN of the Lender (Optional)
2020. Either it should be self occupied or let-out.
• Joint owner declaration in case of Joint loan
• Maximum benefit allowed is Rs.2 Lakh for all type of housing
• Possession Letter from Builder(Self declaration) / Completion
status i.e., Let-out, Self occupied, etc.
certificate from Municipal authority required, if possession is
• On Second Self-Occupied Property Loss under the Head 'Income
after proof cut-off date.
from House Property' is limited to Rs 2 Lakh only . . No Notional
• All Pre-construction period interest, provision certificates is
Rent on Second Self-Occupied Property.
mandatory, if the same is claimed

Notes: Attachments
• In case of Loan availed before 01-Apr-1999 for purchase, construct, repair, renovate or reconstruct the property and if property is not
occupied within 5 years from loan sanction date the tax benefit on interest will be restricted to Rs.30,000/- PA only
• Pre-EMI interest (EMI paid before occupation of the house) is deductible in 5 equal installments starting from the year when the
construction is completed or property is acquired
• If HRA & Loss on self-occupied property are claimed for the same period & same city, then IT Exemption on Rent will be disallowed for
overlapping period
• In case of multiple properties, any two property can be claimed under Self-occupied and rest all under let-out
• If the property is vacant or Occupied by family members, it will be considered as deemed let-out hence Notional Rent to be declared
• **For the FY 2019-20 and onwards, the benefit of considering the houses as self-occupied has been extended to 2 houses. Now, a
homeowner can claim his 2 properties as self-occupied and remaining house as let out for Income tax purposes but maximum benefit
allowed is Rs.2Lakh only other than 80EEA
• Notional rent to be taken as municipal valuation or the rent of similar property in the same locality, whichever is higher. However, if
standard rent is fixed for the property, then notional rent cannot exceed the standard rent Continued
• **If the employer is not satisfied with the rent declared by the employee, on request basis employee has to produce CA Certificate on Housing loan
Loss from HP calculation.
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 80EEA Additional Housing Loan Benefit - Section 24B
Eligibility:
• The loan must be taken between 1st April 2019 and 31st March, 2020
• The value of house property must not exceed Rs 45 Lakh and Individual should not own any house on the date
of sanctioning of loan
• The individual taxpayer should not be eligible to claim deduction under the existing section 80EE.

Notes:
A deduction for interest payments up to Rs 1.5 Lakh is available under section 80EEA , This deduction is over and above the
deduction of Rs 2.0 Lakh for interest payment available under section 24 of the income tax act.

Therefore, taxpayers can claim a total deduction of Rs 3.5 Lakh for interest on home loan, if they meet the conditions of section
80EEA.

Attachments

Internal Use - Confidential

 Previous Employment (PE) Declaration
Eligibility:
• Applicable only to employees who have joined Dell only after
1st April 2019 and having income from previous employment
• Previous employment shall be other than Dell/EMC
• Income should be from Salary earned within India
• Income earned shall be after 1st April 2019 only.
Mandatory Documents/Information:
• Income Tax Computation sheet / Form-16 obtained from
previous employment
• Form 12B to be filled & signed by employee
• PAN & TAN of the previous employment
• Copy of Tax benefits claimed at PE, if any

Notes
• It is mandatory for employees to declare the previous employment income if any as per the tax guidelines. This helps to equalize
the tax liability for the year. Else the same has to be declared while filing tax returns by paying the additional tax.
• Generally including the Previous Employment income with current employer, would lead for additional tax deduction because of
Tax slab change on consolidated income. Employees are advised to take note of this.
• Any tax benefit related to HRA, LTA, etc., for Previous employment period has to be claimed with them only. Dell cannot provide
Income Tax Exemption for such benefits as there is no employment relation exists with Dell for that period.
• Any Tax benefit claimed at PE related to Chapter VI-A, Housing loan, Mediclaim Insurance, etc, have to be claimed again with Dell.
Photo copy of the documents to be submitted as part of POI.
• Dell payroll team cannot calculate the previous income & tax based on the Pay-slips or other details.

Attachments

Internal Use - Confidential

 80C Investments…
SL.No. Component
1 Life Insurance Premium(LIC)
2 Public Provident Fund (PPF)
National Saving Certificate
3 - Self (Employee ONLY)
(NSC)
Fixed Deposit in a Scheduled
4 - Self (Employee ONLY)
Bank
Unit Linked Insurance Plan
5 - Self, Spouse & Children
(ULIP)
6 Mutual Fund/ELSS
7 Infrastructure Bonds
Housing Principal including
8 registration.
Registration & Stamp duty
9 Children Tuition Fees
10 Sukanya Samridhi Scheme
11 Pension Policy (80CCC)
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Eligibility covers
- Self, Spouse & Children
- Self, Spouse & Children
- Self (Employee ONLY)
- Self (Employee ONLY)
Only for Active housing loan
availed in the name of
employee & house should not
be under construction
Only for Tuition fees &
max of 2 children
Investment made max for 2
girls
- Self (Employee ONLY)
Mandatory Documents to be produced (Soft Copies) Notes
1) Policy should be IRDA approved & document should specify about 80C
1. Receipt for Insurance Premium paid during the FY 2019-20 Eligibility.
2. For online payment – Statement from Insurance Company 2) Late Payment fees & future period benefits are disallowed.
showing the current year payments can be provided 3) Premium allowed(In case of Single premium policy) is subject to a maximum
of 10% of sum assured.
PPF Passbook (Cover page should specify Name of the
- PPF Passbook (Cover page) issued by Bank/Post office & Person & type of account) very clearly
transactions made in FY 2019-20 - Only current year contribution excluding interest accrued, if any.
- Counter foil issued by the banker on payment
- It should specify the payment made for FY 2019-20
- NSC copies
- It should specify about 80C eligibility
- Period of deposit is Five years and deposit should be with a Scheduled Bank
clause or with Post Office under Tax saving scheme.
- FD Certificate
- Receipt should contain the word “Issued under tax scheme”.
- Copy of the Investment certificate / receipt for the current
- Policy document or statement should clearly specify that it falls under ULIP.
financial year.
- Copy of the Investment certificate / receipt for the current -ONLY "Tax Saver Mutual Fund" is eligible for tax benefit
financial year. -Must be an investment eligible under Section 80C
- Copy of the Bond / Certificate showing allotment made.
-If this is joint investment then the first name should be of the associate and
- In case of Demat, statement showing the credit into Demat
payment proof needs to be established by the associate.
account
-Must be an investment eligible under Section 80C
- Provisional certificate pertaining to current FY 2019-20
- Property should be completed within the same financial year of purchase or
'- Receipt issued by the Sub registrar office along with the Sale
deed to claim registration/stamp duty
- EMI statement from Bank is not a valid document this purpose.
- Property Completion certificate of the property
Tuition fees does not include payment towards any development fees or
Fees Paid receipt for FY 2019-20
donation or payment of similar nature.
Passbook/statement from Bank/post office where payment
made for FY 2019-20 -Must be an investment eligible under Section 80C
Certificate evidencing payments to pension funds and its
Policy should be IRDA approved & document should specify about 80CCC
eligibility for a deduction under this section during the current
Eligibility.
financial year.
 80CCD - NPS Contributions
80CCD (1) – NPS Contribution (for Tier 1 Account)

Eligibility: Employee’s contribution outside Dell/EMC Fund. 10% of Basic salary can be claimed as maximum deduction subject to
an upper ceiling of Rs.1.5Lakhs.

Mandatory documents to submit: Copy of the stamped deposit receipt, paid during current financial year and copy of the Passbook
with clear mention as NPS (National Pension System) Account

Note: This Section will be part of 80C limit. No Tax benefits while investing in Tier 2 NPS account.
Employee should not produce any documents where contributions are going through Dell/EMC.

80CCD 1(B) – NPS Contribution (for Tier 1 Account)

This is an additional benefit of Rs.50,000/- over and above Sec. 80C limit or what
you claim under 80CCD (1)

Please note, “Atal Pension Yojana” is also part of this 50000/- limit.

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 80D-Mediclaim Insurance
Eligibility: Mandatory Documents/Information:
• Mediclaim insurance premium paid outside Dell for Employee, • Premium paid receipts from the insurance company.
spouse, children & dependent parents. • Should have clear information about qualifying u/s
• FHPL coverage availed Dell availed for Self/Spouse/Children 80D.
TOPUP.
• Premium paid in any mode other than Cash.

Notes
• No proof is required for FHPL Deduction done through payroll. They will be considered automatically
• Premium paid (including GST) is allowed. Late fees & Penalties etc., are not allowed
• Preventive heath check up is allowed for deduction up to Rs 5,000/- within the overall deduction limit. Health
checkup document should clearly specify that respective checkup will qualify for tax benefit or respective
diagnosis is part of preventive health checkup program.
• Premium shall be paid by Employee only and no future due payments will be allowed.
• Proposer of the policy shall be employee only.
• Proof related to 80D Exemptions if considered in Previous Employment, to be resubmitted at Dell again.
• Tax benefit extended as below;
• Rs.25000 for Employee, spouse & children(The eldest member in your family (yourself, Spouse &
children) is less than 60 years.
• Rs.25000 for Parents (Father & Mother) aged below 60yrs
• Rs.25000 (additional) for Employees aged 60yrs and above.
• Rs.25000 (additional) for Parents aged 60yrs and above.

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 80E- Interest Paid on Education Loan
Eligibility:
• Loan taken by the employee for Self, Spouse & Children or
student for whom the assessee (Self) is a legal guardian
pursuing higher education after 01-Apr-2012
• Only the Interest paid for the year is allowed for tax benefit
• The loan should be taken either from any Bank / financial
institution or any approved charitable institutions.
Mandatory Documents/Information:
• Photo copy of the loan certificate issued by
the Bank where Principal, Interest paid for
the year, Lender’s name & Address and PAN
should be clearly assessable.
• Joint borrower declaration in case of Joint
loan- Refer the Format Attached

Attachments
Notes
• Any kind of courses / education higher than Senior Secondary Examination are allowed for self,
spouse or children
• Only full time courses are allowed for deduction
• The deduction for the interest on loan starts from the year in which you start repaying the loan.
Interest paid for the first 8 years on loans taken for Higher Education such as Engineering / Medical
etc is allowed.
• Certificate of payment due (without Interest & Principal) cannot be considered as proof of payment
hence not considered as a valid document.
• The Bank Loan Statement should clearly mention that the said loan qualify under Section 80E tax
benefits
• Loans taken from friends or relatives don’t qualify for Income Tax exemption.
• No Tax benefit is allowed for the principal portion of repayment.

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 80DD-Medical Expenditure for Handicapped Dependents
80U – Employees with disablement
Eligibility:
• Employees having Handicap dependents (for 80DD)
• Employees having disablement (for 80U)
• Dependents are Spouse, Children, Parents, Dependent
Brothers & Sisters only allowed U/S 80DD
• Benefits are: (i) NIL if disability is <=40%
(ii) Rs.75000/- if disability is between 40% to <80%
(iii) Rs.1,25,000/- if disability is =>80%
Mandatory Documents/Information:
• Photocopy of certificate (Form - 10 IA)issued by the competent
Government medical authority specifying the % of disability
• Self-declaration mentioning amount spent on treatment,
training or rehabilitation of the handicapped dependent or
receipt of the amount paid to LIC/UTI for the policy

Notes:
• The taxpayer cannot claim 80DD deduction if the dependent has already claimed deduction under Section
80U for himself or herself.
• Where condition of disability requires reassessment, fresh certificate to be obtained after its expiry to
continue claiming the deduction
• Form10 IA is mandatory, else benefit will be Disallowed
• Form 10 IA will not be considered, if the expiry date is before 01-Apr-2019.
• Handicapped dependent who have got benefit as above, should not claim benefit u/s 80U while filing tax
returns

Attachments
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 80DDB-Medical treatment for Dependents with specified Diseases
Eligibility:
• Employees having dependents with specified diseases as
referred under section 80DDB (including employee)
• Applicability for Self and Dependents which includes Spouse,
Children, Parents, Dependent Brothers & Sisters
• Specified diseases & ailments are as per the attachment.
• Maximum benefits are up to 40,000/- or the amount actually
paid , whichever is less. In case of Senior citizen Rs.1Lakh or
amount actually paid, whichever is less.
Mandatory Documents/Information:
• Bills required to be submitted for actual treatment expenditure
incurred during the current FY 2019-20 along with certificate of
disability issued by notified authorities. If reassessment period
is recommended by doctor for the current financial year in that
case employee has to renew the certificate.
• Prescription need to have following mandatory details
- Name and Age of the patient
- Name of the disease or ailment
- Name, address, registration number, and qualification of
Doctor

Notes:
• Kindly refer the attached document carefully and completely before requesting for the benefits.
Extending benefits is completely based on the section guidelines
• Patients getting treated in a private hospital are not required to take the certificate from a government
hospital.
• It's an employee responsibility to highlight, if dependents are insured and need to adjust the insurance
amount received if any towards medical expenses during the year against maximum benefit.

Attachments
Internal Use - Confidential
 80EEB - Loan taken to purchase Electronic Vehicle
Eligibility: Mandatory Documents/Information:
• Photo copy of the loan certificate issued by
• The deduction is available if the person does not already own any electric vehicle the a financial institution or a non-banking
• The loan must be taken from a financial institution or a non-banking financial financial company for buying an electric
company for buying an electric vehicle. vehicle where Principal, Interest paid for
• The loan must be stanchioned anytime during the period starting from 1st April the year,
2019 till 31st March 2020.
• "Electric Vehicle" has been defined to mean a vehicle which is powered exclusively • Lender’s name & Address and PAN should
by an electric motor whose traction energy is supplied exclusively by traction be clearly assessable.
battery installed in the vehicle and has such electric regenerative braking system,
which during braking provides for the conversion of vehicle kinetic energy into
electrical energy.

Notes:

• A new Tax deduction of up to Rs 1.5 lakh has been proposed on Interest paid on Loans
taken to purchase Electronic Vehicles.
• Do note that an individual taxpayer should obtain the interest paid certificate and keep the
necessary documents such as tax invoice and loan documents handy at the time of filing of
the return.

Attachments
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Internal Use - Confidential