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How to add Biller in Karnataka Bank

  • Open your Karnataka bank Mobile App.
  • Click on More

  • Click on “Manage Biller”

  • Select category as Mutual Fund

  • Now Click on Add Biller

  • Select Biller as BSE limited

  • Enter/Paste the URN number and Nickname as Fisdom

Now click on proceed to add your biller.

A gift for retirement – National Pension Scheme!

Technology has played a vital role in improving the standard of living of mankind. It has also made people lazy. Not sure, whether I should thank technology or blame it for the simple reason that it has increased the average life expectancy to 70 years. It makes me think if I have been gifted such a long life, shouldn’t I plan for a healthy and happy retirement? Shouldn’t I be prepared for relaxed tomorrow?

I am pretty sure you guys have been of the same thought process. Are we on the same boat? Absolutely. Ladies and gentleman let me present you National Pension Scheme.

What is NPS?

The Government of India started the National Pension System under the Pension Fund Regulatory and Development Authority (PFRDA). National Pension Scheme is an old age security coverage to all citizens who have opted out for this scheme. It is a voluntary scheme.

Why should I invest in NPS?

  1. Tax Deduction: Additional tax deduction of Rs.50,000 can be availed via NPS under section 80CCE other than 1.5 lakh deduction which we get under 80C.
  2. Returns: You can expect a return of 8% – 9.5% from NPS. It is totally depending upon the investment choice you do (Ref point: investment choice under NPS below.
  3. Regular income during retirement days: There is no need for asking monetary help from your near and dear ones during our retirement. NPS will take care of your monthly expenses.
  4. Flexible: NPS account can be operated from every nook and corner of India irrespective of individual employment and location. You can also switch between different investments funds in NPS.
  5. Portable: NPS scheme holders can move from one sector to another like Private to Government or vice versa or Private to Corporate and vice versa. The NPS account will always be the same no matter wherever you go. Even if you leave your job, you can continue using the same account.           

Who can invest in NPS?

All the State and Central Government employees, as well as citizens of India that fall between the age group of 18 to 60 years, are eligible for investing in the NPS. The pre-existing pension account holders can also apply under this scheme for fresh registration.

Types of accounts under National Pension Scheme:-

1. Tier 1 Account: It is a pension account with limitations on withdrawal. Before you hit 60 years, you can withdraw 20% of the contribution. A subscriber required to make an initial contribution of 500 at the time of registration. Subsequently, the subscriber needs to make a minimum contribution of INR.1,000 in any financial year. Minimum amount per contribution is INR. 500. Tax benefits can be availed on money deposited in this account.

2. Tier 2 Account: A subscriber required to make an initial contribution of INR.1,000 at the time of registration. Subsequently, the subscriber needs to make a minimum contribution of INR.250 in any financial year. Tier 1 account is a prerequisite for Tier 2 account.

Opening an NPS Account: –

Opening an NPS account is not that difficult now, it’s just a click away. You can easily invest in NPS online through us. We are a new-age app that makes it easy to invest in mutual funds.

How to exit from NPS?

When you hit 60years of age, you can withdraw up to 60% (Out of which 40% is tax-free) of accumulation as the lump sum and rest 40% will be converted into a pension.

If you want to exit from NPS before 60 years of age, then you are allowed to withdraw only 20% accumulated amount. Pension product will be purchased by the remaining 80% of your fund.

However, in case the death of the subscriber, a nominee is allowed to withdraw 100% of NPS.



The movie is never a good movie until the climax is awesome. I rest my case!

Happy Investing!

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When Crude Oil becomes Rude Oil

Being a crazy football fan, I have been planning to write on FIFA. But the dinner table discussion between my mom and dad, made me realize there is something more important than FIFA. The month just got over. You guys might have realized it. Where are you thinking monthly salary? Sorry, but it’s not that. It’s the monthly budget which has been changed, which made me wonder, why is it happening? I am pretty sure; we all are on the same boat. So I decided to enlighten them about why is it happening and how will it affect them? By the way, the budget has got nothing to do with my FIFA tickets.

Apart from the maid, oil has a major contribution to our day to day activities. Jokes apart, right from the food we eat, the car we drive, the cream you apply, the paint that color your wall and the list goes on. It is being witnessed that, there has been a sharp increase in the oil prices. The oil which used to trade at $60 per barrel is now trading at $80 per barrel. It has been rightly said that “Tiny drops of water, makes a mighty ocean”. The analogy holds true for the monthly budget as well.

                                      Oil prices from Aug 2017 to July 2018


Why is the oil price rising? I am happy to say that, Mr.Modi has got no play in this. Having said that, it’s Mr. Trump who has pulled out the Iran nuclear deal, which prohibits Iran from exporting oil to different countries. Iran has a lion’s share in supplying oil to the world. Due to the cancellation of the deal, the supply of oil has decreased. Due to this, we have seen the oil price to roar. There are some other reasons as well, but the one we discussed is the major one.

How is the price going to affect my household expenses?
To be honest, oil is a blessing in disguise. It is used in a majority of the products.
The picture speaks louder than words. If the oil price is increasing, all these products will get a bit expensive and you may see a temporary hike in your monthly budget.

                                        Usage of oil products in household

How is the price going to affect my investments?
The increase in oil price has caused depreciation in the value of rupees and accordingly appreciation in the value of dollars. This causes an increase in the price of the bond, which results in a lesser yield from the bond. Apart from bonds, the stock price of the company will also get affected. The increase in price will result in lesser profit and hence lesser returns. Yes, mutual funds to the rescue. Invest in mutual funds and decrease the losses considerably.

How is the price going to affect my business?
If your company deals in tires, plastics, chemicals, fertilizers, wax industries, refining, airline, paints, footwear, lubricants, cement, logistics, and construction material for whom crude or its derivatives are major inputs/costs will take a hit on their margins.

How is the price going to affect my daily commute?
Daily commute can be a bit expensive due to the increase in the price of petrol and diesel. Apart from that, some other automobile equipment can also appreciate to some extent.

                                         Usage of oil products in automobiles

To be honest, oil price does fluctuate. It has happened before and it is happening now. It is a game of supply and demand. But the market always brings equilibrium. The prices are high today. But expect them to fall in near future. It is just a momentary situation. Stay invested. Stay safe.

Happy Investing!

Being financially free

It’s the month of India’s financial independence and I can only think about what it takes for us to be free, as people.

We’re either dependant on our jobs, relationships, traps of habits, or emotions.

Taking a route on viewing how we can be financially free and how relatable it is to each one of us.

There isn’t a person I know who hasn’t watched queen! Or wanted to watch it again. I run out of words that could describe this movie. It isn’t a movie it is an entire experience.
For those 2.5 hours I got involved with her joys, her sorrows her heartbreak, the condescending nature in which she was treated by her Fiancé and most involved in her evolution within that time period and her courage to break free from the shackles of social standards( Who is this society anyway?).

While watching the movie I couldn’t help but wonder, what could be the financial implication of such a situation in any young girls life…

1. Heartbreak is a big deal! As much as you hear:‘ It is for the better’, ‘ He didn’t deserve you’ etc… it always hurts. Shopping is a solution! So is taking a holiday with your girlfriends and so is pursuing your hobby, taking up a course. None of which comes free, unfortunately. Word of advice, start saving for a worst case always!
A Monthly SIP (Systematic Investment Plan) could go a long way in bailing you out of any situation that suddenly looms on your head.

2. Do not let past bad experiences affect your future decisions- In a state of self-pity, it may have been very easy for her to slip into that life again by accepting a not so positive partner.
However, she chose to step out of that territory and find one of her own. Often, we struggle with investments we have made in the past, regret them, curse the person who sold them to us, stop any future investments and sit cushy with the money in the bank feeling comfortable.

Sometimes a bad experience should be used to leap into the future with more gathered wisdom. Research/ understand the options of investment well before getting into them.

Use the guidance of an expert on this route to financial freedom.

3.Change / Transformation – she transformed from her a meek quiet under confident submissive girl to one with a spark in her eyes, a skip in her step and confidence oozing off her. This she gathered only through going through different experiences and finding herself. The same could be associated with your investments.

Evaluating options and then finding those that make you comfortable. Whatever they may say, savings, investments and going to bed knowing that your money is working hard for you, gives you confidence like no other!

4. Self Discovery – Her journey only helped her realize what her dreams were for herself. Something as simple as cooking which gave her a sense of joy when she realized she could sell what she made!

Often, we don’t pursue our smallest dreams cause we don’t put down and road map our goals or don’t have the money to fund them! Put it down and start working towards it! You never know how these small steps help you realize your biggest dreams! Start building a small investment fund to just help you pursue your goals, whatever they might be.

In a lot of these steps, you might need fisdom, and we are here for you.

On that note, I’m signing off, hoping some of this makes a small difference in your lives!

Income tax return

Deciphering the mysterious ‘capital gains’ while filing the ITR this year

While traveling in the woods, I met a monk who enlightened me with his words of wisdom about happiness. Happiness is of two forms. The first one is the internal happiness which you gain from charity and other social cause. The other one is the external happiness which you gain from spending money. He told me you can’t get both kinds of happiness at the same time. Well, the monk hasn’t met the older monk yet. Politely, I bowed my head and whispered, “I am sure you aren’t aware of the concept of Income Tax”.

Allow me to get to the point, how to file an ITR?

To be honest, ITR filing is quite a cumbersome task. But we have got a specialty in making life simpler for our customers. Just be with me and follow the steps.

To file ITR, you will need the form. To get form, you will need to visit http://incometaxindiaefiling.com. There you will find 7 ITR forms. If you are a salaried person and have not had any capital gains, then ITR Form 1 is the option for you. But if you are a salaried person or a HUF(Hindu Undivided Family) with the capital gain or loss, you will need to choose ITR Form 2.

Wondering what capital gains are? The extra gain which you have received from your mutual funds is capital gains. The tax is supposed to be paid on realized capital gains during the financial year. Rules for taxation on capital gains is different for debt mutual fund and equity mutual fund. The capital gains can be short term or long term depending upon the period after which the mutual fund is redeemed.

Mutual funds scheme also provides the dividend to investors. Dividend received is also subject to taxation based on certain conditions. Dividend received up to Rs.10 lakhs is tax-free and dividend earning of most of the retail investor falls under this category.

There are some things which must be taken into consideration. Tax is calculated for funds in your portfolio, which you have redeemed. For long-term capital gains, the tax is payable capital gains if the amount is above 1 lakhs. If you are looking for tax deductions, only ELSS schemes and pension schemes of funds can be shown under Section 80C up to a maximum of Rs.1.50,000.

This is all a smart investor must be aware of.

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Happy Investing!


Billionaire investors swear by these three principles for investing in highly volatile markets

Since the past month, equity markets have been significantly choppy. While many savvy investors have taken it in stride and are harping on the correction as an opportunity to buy more at discount prices, there is a large faction of mutual fund investors for whom the sweat on the brow has not dried since over a month.

Investors who have started investing in mutual funds only a year back or so are experiencing the stomach-churns for probably the first time. All this time, novice investors had been exposed to only the bright side of the world of equities with overwhelming returns, many may even have regretted not investing more before the uptick. However now, as the cycle changes, the regret has switched sides because of the “red numbers” in the investment reports.

So, what’s the way ahead for a common Indian investor whose only goal to invest in mutual funds was to build wealth over a longer term?

Tried & tested across periods, successful investors swear by these principles for investing during choppy times.


“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.”
-Warren Buffett


Market cycles are called cycles for a reason – Don’t react as if you did not know that equity markets are volatile

Equity markets are sensitive to multiple factors including macro-economic environment, geopolitical scenarios, sectoral stress and similar. The markets react and reflect people’s expectations in the very distinct near term and quite often than not in an exaggerated manner. “Kneejerk reaction” is among the most used phrases on Dalal Street for a reason. However, those who stood the test of time and believed in investing discipline emerged with bountiful wealth.

Right from the 2009 financial crisis to Brexit, North Korean missile tests, Fed Rate hikes and similar global tantrums, equity markets have survived it all and yet delivered spectacular returns over the period. Ever wondered why? Simple, do you believe that many years down the line, the world (includes national economies, sectors, companies, humans, art, music and everything) will reach a pedestal at least some place higher than now?

Basically, do you believe that mankind will continue to progress?

If your answer is yes, you must realise that equities are nothing but a reflection of economic progress (driven by mankind, obviously) and so has a direct correlation and reason to grow with the rest of the world.


“We continue to make more money when snoring than when active.”
-Warren Buffett


Equity markets fluctuate basis the demand and supply by millions of entities.
Can you read a single mind? If not, why try read millions of them and time the market?

Millions of minds and algorithms maintain the demand-supply and consequent pricing in capital markets. What is the likelihood that you would be able to fathom the direction in which the majority decisions would flow?

Even when you think you can make some sense out of the chaos, let me tell you, very often even the entire market gets things wrong – hence the term “correction” instead of “decline” is used to describe such scenarios when sudden enlightenment reverses the effect of overtly optimistic valuations previously placed by the market.

We all know the golden rule for building immense wealth – “buy low, sell high”. However, ironically, we tend to do precisely the opposite. When prices go down, we panic and sell only to return when prices are soaring.

Following is a classic illustration of what would have happened if your parents did what you are doing now – skipping SIP instalments and investments when the market has tanked the worst during the year.

(Assumed INR 1L SIP into NIFTY 50; Dip % on Base Scenario)

Honestly, nobody – literally nobody in the world can time the market while many are paid to try. The best way to go about investing is through a periodic investment (think SIP) just so that you manage to average your purchase cost across cycles and benefit from the rupee-cost averaging.


“Most People don’t plan to fail. They fail to plan.”
-John L. Beckley


Plan right & believe in it – That’s the reason you had a plan in the first place

Times like now are testing times where many novice investors get shaken by volatility and choose to step out of the markets instead of riding the tides till they reach their goals. Statistically, not sticking to plans is the reason for ~87% of investment failures.

Asset allocation and financial planning is key to being profitable and building wealth. Let’s say you start exercising to get fit – you have a planned schedule, workout routine and diet plan. While planning, you knew it would take at least 8 months of perseverance before you achieve your target body. Now, what happens if you follow the regime regularly but don’t see much of an impact in one month? Would you stop? If you stop, you know who is to blame when eight months have passed, summer has begun, and you can’t get into your summer outfit on the beach.

Quite often in life, you will not be able to achieve goals (financial as well as non-financial) if you give up way before the time comes when you were expecting to reap the benefits.

It is extremely important that you plan extremely well, keep reviewing and make situational alterations – not a revamp.

While these principles are not a definite guide to becoming Uncle Scrooge wading through an ocean of gold coins, but it sure can help you achieve your financial goals.


Trade Wars: Making America Great Again. Or maybe not?

The tale of old brute protectionism coming back to stab the benevolent globalization

Since his election as POTUS, President Donald Trump has received flak from global economists and equal cheers from unsuspecting protectionist lobbies for his stance on extreme protectionism. True to his electoral campaign “Make America Great Again”, the orange man dressed in a Brioni suit sure is determined to take some serious actions. However, knocking-off anyone who crosses your path may not always be a prudent manoeuvre – especially if you are a debt-ridden super-economy and the others are significant trade partners who have a meaningful stake in creating fortunes for you.

Trump’s unfaltering streak of meddling with existent trade policies can be outlined as follows:

So, what did Donald Trump sign now?

Trump just okayed a proposition to levy a tariff of 25% on steel imports & 10% on aluminium imports. While Canada and Mexico are exempt from this tariff, Trump has asserted that it would consider offering ‘flexibility’ to ‘friends’.

Now, what’s this ‘tariff’ thing all about and why does Trump want this?

For all practical purposes, a tariff is a type of tax that the government levies on import of certain goods & services (technically, even exports can be levied but it is not quite popular because profits, duh!). This tariff is a direct revenue source for the government of the importing nation.

So, is this about increasing revenue for the government?
Well, that is an implicit benefit, but definitely not the real story behind this one. Trump has long been advocating protectionist measures to boost domestic manufacturing by penalizing imports and retaliating against dumping – the process wherein foreign countries produce goods at a very cheap cost and sell in the domestic market at rates so cheap that kills profitability for domestic manufacturers.

Having said that, don’t we all know who the clear target is? – at least when it comes to dumping cheap goods across nations.

Fun fact about 2017, America imported 36 million metric tonnes of steel as against domestic production of 10.1 million metric tonnes and was a net importer for 47,31,000 metric tonnes of aluminium. Unsurprisingly, China leads global production for steel (49.2%) and aluminium (53.5%) where America sits somewhere in the corner of the first row. Interestingly, on an average, China produces as much steel in a month as America does in a year.

Isn’t it uncanny how a nation such as America which, for all practical purposes, thrives and survives on imports take such a bold decision to get off the drip? Can America’s domestic production even suffice its own demand, let alone export?

Is America reflecting the classic Indian phrase – “Aa bail, mujhe maar”?

Basic back of the envelope calculations suggests that though currently underutilised, the demand for steel and aluminium outweighs existing capacity significantly. This means, even if American manufacturers start utilising all available capacity at the highest operating efficiency levels, they will still fall way short of production required to suffice home demand. And creating new capacities would not be an easy task owing to the challenges around the long setup period, availability of skilled labour, expensive power and rising cost of financing.

America is clearly targeting its first trade attack at China. At the same time, as in the year 2017, USA was sitting on its largest trade deficit of ~$375 billion owed to China. Now, China had been reciprocating well by importing from US goods worth $130 billion which is over a third of what America owes to China.

Adding to China’s clear upper hand, it owns ~$1.2 trillion in US treasury bonds and even a mild retaliation by way of partial dumping could be quite the taser to the Fed.

Now, while Trump’s aspiration and ambition is understandable and appreciated, playing twister on a field of landmines is probably not the best option available. Since quite some time, America has been stepping on the toes of meaningful trade partners and the World Trade Organisation. A synchronised retaliation by member countries (which has already begun) could do some serious damage not just to the American economy but also to the global economy as a whole.

It is not very advisable to try fight with a suicide-bomber – nobody’s going to get out alive.

Caught in crossfires: Can this be a win for India?

While such increasing tension between America and China elicit fears of global uncertainty, India may be in a relatively insulated situation – at least out of direct shooting range. With America turning hostile towards China, it is imperative that China will need a big market to substitute the slippage of America as a meaningful importer. Having said that, India is not only the most convenient geography but also the perfect demography for China to engage in trade activities.

Economic progress and retaining domestic political power is key to President Xi Jinping’s personal and political ambitions. Beijing’s situation and trade relationships offers New Delhi meaningful geopolitical leverage. This only means that India can not only exploit the situation to its advantage through concessions and other acts of friendship, but also leverage the relationship to deal with nuisance neighbours.

Nevertheless, India does not stand free of collateral damage if the hostilities between America and China blows out of proportion. If India, intentionally or unintentionally, rubs USA the wrong way; the economic repercussions would not be a beautiful one.  Diplomacy would be key for India to crawl its way out of the crossfires only to return when peace and sense prevails. If dealt with in an exceptionally skilled manner, India can be the monkey who eats the cake while the two cats fight.

Taking a leap of faith in human sanity, the chances of a full-blown trade is slim. However, if one were to happen there will be nothing but economic shambles left on the streets.

Rightly put by Chinese Commerce Minister, “There are no winners in a trade war, and it would bring disaster to our two countries as well as the rest of the world”

Last minute investment ideas for tax saving

For years now, as March commences, many of us rush to make ‘tax-saving investments’ into almost anything that allows for an 80C deduction without even putting much thought to it. This, quite often than not, leads to a mess of a financial decision. Only if you could correct your short-sightedness of tax saving and think of these investments as tools to building long term wealth, you can reap much superior benefits.

To save you from the trouble this year here is a list of last minute tax saving investments tips which will come in handy to lower your tax outgo.

Utilisation of Section 80C in last minute investment planning  

Section 80C of the Income Tax Act is one of the most popular widely explored options for tax saving investments. With a host of financial investments options ranging from PPF, EPF, ELSS, Life Insurance Policy premiums, Bank FDs, Post Office Schemes etc. There is some or the other investment option available for all types of investors. Investments up to Rs 1.5 lakh in one or more of these are exempt from tax. Here is a quick review of some of the best last minute investment options in Section 80C.

PPF:  If you unsure about where to invest and don’t want to take risks for your investments, invest in PPF. PPF investments are backed by government and offer fixed interest rate each year. If you do not have a PPF account, you can open one online and if you have an account then you can just invest the remaining amount to utilize your 80C limit. However, the current rate of interest is low at 7.6% p.a.

ELSS: ELSS is one of the best investment options in the list of financial products as it provides you the opportunity to invest in markets and enjoy tax deductions for the same. If you are a salaried employee, a sizeable amount of your investments go into your EPF account and you can look at investing in ELSS to diversify your portfolio into equities. Even for non-salaried taxpayers, ELSS is the ideal option for equity investment as most of the investments in 80C are debt investments. Another advantage of ELSS is that it has the shortest lock-in period of 3 years. Among all investment options, ELSS mutual funds offer the lowest lock-in with almost the highest returns.

Life insurance policy: Having a life insurance policy is extremely essential and if you do not have insurance policy with adequate coverage then you should look at buying a good term insurance policy. One should have term insurance policy in the portfolio to protect family for uncertainties.

NPS: You should start your retirement planning as soon as you can and NPS can be a great investment avenue for the same. Your investments in NPS enjoy additional deduction of Rs 50,000 under Section 80 CCD(1b) thus taking the total limit of tax deductible u/s 80C income to Rs 2,00,000 for the financial year.

Tax Deduction options beyond 80C

There are several other investment options which do not fall under the Section 80C and have a high probability to be missed while declaring deductions. These include:

Deduction on your Housing Loans: You can claim repayment of principal amount of your home under Section 80C upto Rs 1.5 lakh. Apart from this, you can also claim additional deduction of Rs. 2 lakhs on the interest component of your home loan for fully constructed self-occupied property under Section 24(b).

Claim your medical policy premiums: Given the rising healthcare costs it is (became) extremely important to have medical insurance. If you do not have medical insurance policy for you or your family (including parents), then you should purchase medical insurance policy and claim the premium paid for such policies for tax deduction under Section 80D.

Interest on Education Loan:  If you have taken an education loan for higher studies for yourself, your spouse or children then you can claim the deduction for the interest paid each year on such loans under Section 80E

Donations made to funds and charitable organisations: If you have made donations to charitable trusts and organisations or relief funds, then you can claim deductions for donated amount under Section 80G.

Interest earned on your savings account: You can also claim deductions upto Rs 10,000 for interest earned on your savings account under Section 80TTA (revised to Rs. 50,000 p.a. for senior citizens w.e.f 01.04.2018)

The best way to make the most of your investment options for the current financial year is to ensure that you adopt these basic and simple tax saving strategies to avoid investing in products which you do not understand and may not be suited for you in the long run.

Happy women’s day 2018

fisdom dedicates this poem to all women in the world!
Written by:
Parul Mehta (A happy customer of fisdom)

Rise Higher

As a child, I would watch beautiful birds;
Admire their strength and courage beyond words.
I loved that the birds could fly so high;
I had no wings and I wondered why.

I dreamt of having my own wings some day;
Open them up and fly away.
I asked my dad if it was possible for me;
He said now that I wanted, it will surely be.

“Like birds have wings to fly; you too have your self-belief to rely on.
Go create your own wings, and experience the joy it brings.
Knowledge will bring wisdom and wisdom will empower;
That my child will give you wings like no other”.

Next, I asked, how would I know if my wings had grown?
“The day you feel free, they will shine on their own.
Have faith in yourself and the job will be half done;
I promise you, my child, you will be second to none.”

Having embarked on that journey;
I met some lows on the way,
Some withered away my confidence;
And some just made me sway.

My self-belief would always say in my dips,
“Chin up princess, else the crown slips”
No one except you can pull you down;
Bring back that smile and wear it as your crown.

Both victory and defeat, you better embrace,
No matter what, live life with grace.
Fly, run or walk at your pace,
Always live your life with grace.”

There may be times when hard will get harder;
The glory of the past may be shaken altogether.
There may be times when you feel you may drown;
And that exactly is the time, to rise even higher.

These lovely lessons still thrive in my heart;
Every day I make a promise that no matter what,
I will give more power to my wings;
If I want to play my music, only I must tighten the strings


Tax: Last day for proof submission? Here’s what you should know.

Feature Alert: Now, get your 80C investment certificate on the fisdom app under  Menu > My Account > 80C Investment Proof

For all the salaried employees, the HR department of your organisation would start bombarding you with emails and phone calls to submit the proofs of all the investments made and expenditures incurred which are eligible for tax deduction. This is a follow up exercise on the provisional statement submitted by you at the beginning of the financial year for the proposed investments to be made during the course of the year.

Things to know:

Under the Income Tax Act, an employer is obligated to compulsorily withhold a portion of the salary of all its employees as tax deducted at source (TDS). Thus, in order to avoid excess tax collection, employers take a provisional statement and calculate TDS on your net income after adjusting the deductible investments and expenditures. This helps avoid excess tax collection resulting in refunds later. You can check the same from your 26AS form available online in the official IT website.

Now, with the financial year coming to an end, employers start asking you to submit the proof of investments made by you. This is to ensure that they have calculated your net tax liability accurate and investments made by you are in line with the provisional statement provided by you. And in case of discrepancy resulting in any change in the total tax liability due to change in investments, it can be adjusted in the salary due to be paid in the last few months.

Though there is no specific date prescribed by the law for submission of investment proofs and it totally depends on your employer. However, most employers start asking their employees to submit investment proofs from the month of January and usually such proofs need to be submitted by latest by the 10th of March. The onus to submit these investment proofs is solely on the employees and failure to do would result in employers charging TDS on your total annual income without any tax deductible benefits.

Ideally, if you have made your investments then you should submit the receipt of such proofs as soon as possible. The best way is submit the receipts of all the investments is by checking your provisional declaration and submitting them in the same sequence. Proper numbering and following the same sequence as submitted in the provisional statement will avoid confusion and also ensure that you have not missed out on submitting any document.

Though the list of documents that needs to be submitted would vary for each one of you depending upon the investments made and expenditures incurred by you but the most common documents which you should remember would include:

List of documents for the income which is exempt from taxes would include:

  • If HRA is a part of your compensation package then the rent receipts to claim HRA exemption
  • Medical bills to claim medical expenses
  • Travel tickets to claim leave travel allowance

You need to know your total allowance and then submit the necessary proofs accordingly.

List of documents for the investments made or expenditure incurred which are eligible for deductions under Section 80 would include:

  • If you have a housing loan then the interest and principal repayment certificate from the bank or financial intuition to claim deduction for repayment of housing loan. Principal repayment upto Rs 1.5 lakh is deductible from tax and a deduction of Rs. 2 lakh is allowed towards interest repayment of such loans.
  • First time homebuyers are entitled to an additional deduction of Rs 50,000 (u/s 80EE) over and above the 3.5 lakh per annum.
  • Updated PPF passbook or duly stamped PPF deposit slips for investments made in PPF for the current financial year
  • All life insurance premium receipts for premiums paid in the current financial year
  • FD receipt for investments made in fixed deposits
  • Bank account receipt or updated passbook for deposits made in Sukanya Samridhi account
  • Copy of purchase of NSC certificate
  • Tuition fees receipts of children
  • Statement of investments made in ELSS either in lump sum or SIP
  • NPS deposit statement for investments made in NPS
  • Medical insurance premium receipts to claim deduction under Section 80D for medical policies for you, family and/or parents and bills of money paid for preventive health check-ups
  • Bank certificate for interest payment of education loan
  • Donation receipts with complete details about the recipient to claim deduction for donations made to specific trusts and/or funds

Remember, none of these receipts need to be submitted to the income tax department while filing but you still have to submit all the documents related to your investments to your employer in order to avoid paying extra taxes. If you fail to submit these investment proofs to the HR department of your company within the specified time frame, then your employer will not pass on any tax benefit irrespective of such investments made by you. In order to avoid such a situation it is always advisable to submit the receipts of such investments at the earliest rather than waiting till the end.