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Proofs for LTA, HRA, Sec 80C-80U. Honest taxpayers suffer.

It is indeed a tragedy that honest taxpayers are often victimized, even while lakhs of people merrily continue to evade taxes.

In fact, this injustice and repeated harassment deters, even those who may be keen to rightfully pay their taxes. Who, in his right senses, would willingly submit himself to this "tax terrorism"?

Recent example of this high-handedness, is the new rules announced by the Income Tax Department (vide its Notification No.30/2016 dated April 29, 2016).

As per the same, if you wish to claim deductions under various provisions of the Income Tax Act, you have to furnish a "NEW" form (Form 12BB) along with all the supporting documents, evidences and details to your employer. Accordingly, the employer will calculate the appropriate TDS on your salary income.

Till now, self-declaration by the employees to their employers, along with some proofs, was sufficient enough to claim the deductions.

With these new rules, the IT Dept. aims to
a) Standardize the process through a Form instead of self declarations, and
b) Put the onus on the employers to verify that only rightful deductions are being claimed. 

Liste
d below are the salient aspects of these new rules [known as Income Tax (11th Amendment) Rules, 2016], which become effective from June 1, 2016.

1. HRA or House Rent Allowance

To claim deduction on HRA, you must furnish the following details supported by proofs:
- Rent paid to the landlord(s)
- Name(s) of the landlord(s)
- Address(es) of landlord(s)
- Landlords' Permanent Account Number (PAN), if the total rent during the year exceeds Rs.1 lakh

Meanwhile, you may also like to read
- How To Calculate Your HRA Tax Benefit
- Rules For Claiming Tax Benefit On HRA Tightened

2. Leave Travel Concession or Assistance (LTC or LTA)

Proof of expenditure incurred on travel, being claimed as tax deduction. Also Read '10 Key Leave Travel Allowance Tax Exemption Rules'.

3. Home Loan interest

For deduction of interest paid on home loan, the details and evidences to be provided include:
- Interest payable / paid to the lender
- Name of the lender
- Address of the lender
- Permanent Account Number (PAN) of the lender

4. Deduction under Chapter VI-A

This includes details and evidences under 
- Sec 80C, 80CCC and 80CCD
- Other sections such as 80D, 80E, 80G, 80TTA, etc.

honest-taxpayers-harassed
Please stop being unfair to the honest taxpayers, while many others go scot-free.

Isn't it high time that the Income Tax Department shifted its focus on those who don't pay taxes; rather than heaping injustice on those who honestly do so?

Recent data disclosed by the IT Dept. itself, clearly shows how narrow is the tax base in India. This is ample proof that the IT Department has failed to catch millions of probable taxpayers, while they continue squeezing those who have unfortunately fallen into their net.

Dear Prime Minister, we the honest taxpayers, are still waiting for the achhe din. Please put a stop to this misery and hardships. Hope you won't disappoint us.


Also Note:
Besides the above announcements, relaxation has been provided with regards to the Tax Deducted at Source (TDS) on purchase of property. As per the present rules, you have to deposit the TDS when buying a property, within 7 days from the end of the month in which the same is deducted. (Read 'Property Buyers To Pay Hefty Fine On TDS Default'). This time period has now been extended to 30 days.

The prescribed form 12BB is given below:


“FORM NO.12BB
(See rule 26C)

Statement showing particulars of claims by an employee for deduction of tax under section 192
1. Name and address of the employee:
2. Permanent Account Number of the employee:
3. Financial year:

Details of claims and evidence thereof
Sl. No.
Nature of claim
Amount
(Rs.)
Evidence / particulars
(1)
(2)
(3)
(4)
1.

House Rent Allowance:
(i) Rent paid to the landlord
(ii) Name of the landlord
(iii) Address of the landlord
(iv) Permanent Account Number of the landlord
Note: Permanent Account Number shall be furnished if the aggregate rent paid during the previous year exceeds one lakh rupees
2.
Leave travel concessions or assistance
3.
Deduction of interest on borrowing:
(i) Interest payable/paid to the lender
(ii)Name of the lender
(iii) Address of the lender
(iv) Permanent Account Number of the lender
(a) Financial Institutions(if available)
(b) Employer(if available)
(c) Others
4.
Deduction under Chapter VI-A
(A) Section 80C,80CCC and 80CCD
(i) Section 80C
(a) ……………..
(b) ……………..
(c) ……………..
(d) ……………..
(e) ……………..
(f) ……………..
(g) ……………..
(ii) Section 80CCC
(iii) Section 80CCD
(B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under Chapter VI-A.
(i) section……………….
(ii) section……………….
(iii) section………………
(iv) section……………….
(v) section……………….
Verification
I,…………………..,son/daughter of……………………….. do hereby certify that the information given above is complete and correct.
Place………………………………………….
Date……………………………………………
(Signature of the employee)
Designation ……………………………….….
Full Name:………………”;

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