Income Tax Declaration And Investment Proofs At The End Of Financial Year

Shivani Sinha | 23-Feb-2016

An Income Tax declaration is a conditional statement that an employee has to submit to his/her employer at the beginning of the year or at the time of joining the company. This statement consists of all the proposed investment and expense details that the employee will make during the financial year. The statement includes the income and expenses that are both tax deductible and taxable. At the end of financial year, the employee has to provide investment proofs for the investments that were specified earlier in Income tax declaration.

The declaration is needed by the employer because it is marked mandatory to deduct a constant amount of TDS from the employee’s salary. This TDS is calculated using the declared investments by the employee. If an employee fails to submit this declaration, then the employer is forced to deduct complete tax.

The last date for submitting the Income Tax Declaration And Investment Proofs are set as per the policies of the organization.

Here is a list of all investment proofs that are eligible for tax deduction-

  1. Section 80c - In order to claim deduction of tax under section 80c,employee can submit following investment documents as proof-
  2. Life insurance - If you have taken an insurance policy, you can submit the paid receipts of the insurance premium. These receipts are accepted if in the name of yourself, your spouse or children.
  3. PPF(Public Provident fund) - Tax deduction can also be claimed on passbook copy of PPF.
  4. Home loan statement - A statement describing your home loan details and the principal portion of the EMI’s issued by your banker.
  5. Kid’s tuition fees - The receipts of kid’s tuition fees. Please note that payments made for donation, uniform fee, van fee, maintenance fee are no eligible for deduction.
  6. Other - Mutual fund receipts, copy of NSC certificate (in the name of self),copy of tax saving bank deposit, a copy of post office term deposit receipt(with more than 5-year term), Sukanya Samriddhi Account, stamp duty and registration fees.
  7. Section 80D - Includes tax deduction on a copy of premium receipts and receipts paid towards health checkups.
  8. Section 24B - Includes tax deduction on total interest regarding your home loan during the financial year. To claim it, the individual has to submit loan statement or interest certificate from their banker, completion or occupancy certificate and self-declaration whether the house is occupied by the individual or let down for rent.
  9. HRA(House rent allowance) - The rental agreement and monthly rent receipts including the name of your landlord, their address, and signature are eligible for tax deduction. The landlord’s PAN number should also be quoted if the annual rent paid is more than 1 lakh.
  10. Section 80 G (Donations) - The copy of the receipt issued by the respective charitable organizations are to be submitted. The deduction is ineligible to claim if the payment of donations is made in cash or exceeds 10,000.
  11. Section 80 E (Education loan) - You have to submit a copy of loan certificate reflecting the payments of interest under this section to claim a tax deduction.
  12. Medical treatment bills - Medical expenditures and bills issued during the treatment of a specified disease .It should consist of a certificate from the hospital (in the prescribed format).
  13. LTA (Leave travel allowance) - Under this, you can claim travel ticket bills.LTA can only be claimed via the employer.LTA has been allowed to be claimed twice in a block of four years. The current block is 2014-2018.


If you have still not declared your investments for financial Year 2015-16, then why to wait further to get suppressed by the tax burden. Don’t waste your time. Contact a Chartered Accountant right away at and arrange for your proofs before time flies.

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of The writers are solely responsible for any claims arising out of the contents of this article.
About the Author
Shivani Sinha
A Master degree holder is a Content Developer and an SEO specialist. Having more than 6 years of experience into content development and marketing, she has contributed substantially in this arena. She is good at brainstorming and fast in writing crispy content, bold slogans, catchy captions and punchy one liners. Her stories are well researched and provide for an interesting read. She enjoys working in association with entrepreneurs while spearheading business launches providing marketing advice.