Written by CA Pankaj Chhabra – 
& Megha Jain –
Every salaried individual gets confused or take it as a burden whenever they get a mail from HR to submit their proof of tax savings investments.
But no worries, we have made a handy list for you so that you can refer it lifelong.
Tax savings is one the most important aspect of Financial Planning, and there are various schemes that allow individuals and businesses to reduce their tax liability.
However, in order to take advantage of these schemes, it is important to understand the type of proofs that are required to be submitted to the government for each scheme.
Proofs For Tax Savings Under 80C
1. ELSS Funds
One of the most popular tax saving schemes is the Equity-Linked Saving Schemes (ELSS). It is an equity mutual fund that offers tax benefits to individuals on an investment up to Rs 1.5 lakhs.
Investment proof: To claim tax benefits under the scheme, individuals need to submit proof of their investment, such as a mutual fund statement or a demat account transaction statement for the prevailing financial year.
Related Article: Best tax Saver Funds for Investment in 2023
2. Public Provident Fund (PPFs)
PPF are long-term investments backed by Government of India. One has to open a PPF account and the amount deposited during a year, up to Rs. 1.5 lakhs, will be claimed under section 80C deductions.
Investment proof: Individuals need to submit proof of their contribution to the PPF account, such as a passbook or bank statement.
3. National Pension Scheme (NPS)
It is a voluntary, defined contribution savings scheme that has been started by the Government of India, designed to allow the unorganised sector and working professionals to have pension after retirement. It allows deduction of Rs. 50,000 in addition to Rs. 1.5lakh deduction under 80CCD(1b).
Investment proof: To claim tax benefits under NPS, individuals need to submit their NPS account passbook or bank statement.
4. Employee Provident Fund (EPF)
Contribution to PF is another tax savings investment which an individual can claim under section 80C. This employer’s contribution along with the employee contribution to EPF is eligible for tax deduction under section 80C of the Income Tax Act.
Investment proof: The employer already has the details of your EPF contributions. However, if asked, the individual can submit a print-out of the EPF passbook.
5. Tax-Saving FDs
Income Tax allows an individual to keep Fixed deposits with recognized Banks with a minimum lock-in period of 5 years and offer tax deductions under section 80C on investments up to Rs. 1.5lakhs.
Investment proof: Submit a copy of your FD receipt or print out your FD statement from your bank website.
6. Unit Linked Insurance Plans (ULIPS)
ULIP is an insurance product that provides the dual benefits of life insurance and investment.
Premiums paid by the policyholders are used to provide insurance and a part of it is invested in a variety of funds, such as equity, bonds etc.
An individual can claim a tax deduction of up to Rs. 1.5lakhs for the premiums paid for a ULIP.
Investment proof: Individuals need to submit a copy of policy document and premium receipts in the name of self, spouse and children during the current financial year for life insurance.
7. Children’s Tution Fee
Tuition fees paid for child’s education is also tax-free up to Rs. 1.5lakhs under section 80C.
Investment proof: Child’s tuition fee receipt needs to be submitted to avail tax deduction.
Proofs For Tax Savings Under 80D
8. Health Insurance Premiums
In India, tax deductions on health insurance premiums are available under section 80D of the IT Act, where individuals or HUFs can claim tax benefits for the premiums paid for health insurance policies of self, spouse, dependent children and parents.
Investment proof: To claim tax benefits under this scheme, individuals need to submit proof of the premiums paid, such as a receipt or a bank statement.
9. Preventive Health Check-Ups
An additional deduction of Rs 5,000 is available under section 80D for any payments made towards preventive health check-ups.
Investment proof: Individuals need to submit health check-up receipts to claim this deduction.
Other Tax Savings Options
In addition to these schemes, there are other tax-saving options available, such as the home loan interest deduction, the interest on education loans, and the donation to charitable institutions.
For each of these schemes, different types of proofs are required to be submitted to the government.
10. Home loan benefits
Each loan holder can claim a deduction for home loan interest up to Rs. 2 lakh and principal portion of the EMI paid up to Rs. 1.5lakh.
Proof required for Deduction: An individual needs to submit the following documents to claim tax benefits on home loan repayment:
- Interest certificate from the bank or financial institution
- Completion certificate of the house from builder or occupancy certificate
- Self-declaration whether the house is self-occupied or given on rent.
11. House rent allowance (HRA)
HRA is a part of income under the main salary that an employer pays to its employees to compensate for rent accommodation to live in the place of employment. In India, tax deductions are available for the HRA received under section 10(13A) of the IT Act, 1961.
Proof required for deduction: To claim tax deduction on house rent, the individual need to submit monthly rent receipts and the PAN card of the landlord (only if the annual rent amount exceeds Rs. 1lakh).
12. Leave travel allowance (LTA)
LTA is the allowance paid by the employer to the individual to cover travel expenses, for himself or his family. This amount is exempted for tax deduction under section 10(5).
Proof required for deduction: The proofs needed to claim tax benefits under this section are travel tickets and boarding pass in case of air journey (only for domestic travel).
13. Donations
An individual can claim tax deductions against donations made to charitable trusts under section 80G. Donations exceeding the mark of Rs. 2,000 should be made in a mode other than cash to qualify for tax deduction.
Proof required for deduction: Individual needs to submit donation receipts for any donations made to the charitable trusts.
14. Education loans
Only individuals can claim tax deduction on the interest component paid with respect to educational loan taken to pursue higher studies, under section 80E of the Act.
However, there is no limit prescribed under the act regarding the amount of deduction. Although you can claim such deduction only for 8 years.
Proof required for deduction: You need to obtain a certificate from your Bank bifurcating the Principal and Interest repayment of your loan during the Financial Year.
Related Article: Taxation on Mutual Funds Income
