Tax Rebate options for Salaried Individuals


That time of the year has come when you are required to submit all your investment proofs to your employer to claim tax rebate. We all know what tax exemption is, but many of us are unaware of what all proofs, from our diverse range of investments, can save us from income tax being deducted from our salaries.

You might have varied sources of investment but it is not necessary that all those will help you in claiming tax rebate. In this space, know which investments and expenditures qualify for tax benefits under the Income-tax Act of 1961. Under the Act, there are many investments/expenditures which are considered as tax savers such as HRA benefit, LTA, insurance premium, investment in post office schemes and tuition fees. These apart, tax benefit is also available on Rajiv Gandhi Equity Saving Schemes (RGESS).

You can submit the below listed investment proofs to avail tax benefit:

  1. Rent payments: A salaried person, receiving HRA as a salary component and who pays house rent can submit rent receipts to his/her employer to get tax benefit. The receipt should be in the name of the employee with address, amount and period of payment along with landlord’s signature, name and address. Recently, the guidelines have been revised according to which landlord’s PAN is required if annual rent is more than Rs 1 lakh.
  2. Tax benefit from housing loan: Have you taken a home loan? If yes, then you can use the Principal as well as Interest repayment efficiently to save more tax. As per the guidelines, the loan repayment/ Interest certificate should be in the name of the employee or joint owners. That apart, the purpose of loan and period for which payment relates should be mentioned in the certificate.
  3. Insurance premium: Receipts for payment made, as provided by the life insurer or the medical insurance company can be provided. It is possible that your next premium could be due late in February or March. If so, you can submit a self-declaration along with previous year’s receipts and submit the proofs whenever you receive the same from the insurer.
  4. Investment in National Savings Certificates: If you have bought National Savings Certificates or NSCs during current FY14 and also during some earlier years (Cumulative Interest), you can submit that too to save yourself from paying more taxes.
  5. PPF deposits: PPF or Public Provident Fund has been an all-time favorite tax-saving tool. All an investor needs to do to save more tax by investing in PPF is to submit the receipt of PPF deposit and copy of passbook page showing the deposit.

Check the income tax slabs for financial year 2013-14 as announced in the Union Budget 2013:

Income Slabs

Income Tax Rates

Where the total income does not exceed Rs. 2,00,000/-


Where the total income exceeds Rs. 2,00,000/-
but does not exceed Rs. 5,00,000/-

10% of amount by which the total income exceeds Rs. 2,00,000/-

Where the total income exceeds Rs. 5,00,000/-
but does not exceed Rs. 10,00,000/-

Rs. 30,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-

Where the total income exceeds Rs. 10,00,000/-

Rs. 130,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-

Tax filling is a must for all who fall under the tax bracket (individuals earning more than 2 lakhs) and it should be done before the due date. Even then, many people tend to postpone this important task and regret later. It is a known fact that if you fail to submit the details of your investments along with the proofs, your employer will deduct a huge chunk of amount from your monthly salary in the remaining months in the financial year. So, why delay? If you have investments/expenditures which could give you tax breather, keep the proofs ready today so that you can make the best use of them.


Views as are mentioned in the article are personal views of Author and are not necessarily the views of the Company, its Director and Employees who are in no way connected to these views.

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