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Available in🇮🇳 India
Investment declarations and proof submission is a critical payroll activity that enables employees to reduce their total tax liability. There are two aspects to this:
Employees declare those investments they have planned for the year which reduce their tax liability.
  • Financial investments like NPS, PPF, insurance premium and others are exempt from tax up to a limit, which reduces the total taxable income.
  • Employees can declare investments whenever the declaration window is open in Payroll.
  • Proof of such investments are required towards the end of the year, usually between December to March.
Organisations open proof submission windows to enable employees to upload the proof of investments, as declared at the start of the year. These proofs are approved basis the verified proof amount, as per the organisation’s policy. The approved amount can be independent of the originally declared amount.Using the submitted proofs, organisations calculate the total taxable amount and the subsequent tax reduction. The proofs submitted ensure the correct amount of tax is deducted. The tax calculations then reflect in the employees’ Form 16.You can always correct your tax deductions when filing your Income Tax Returns (ITR).
Handy TipsInvestment proofs/tax proofs reduce the total taxable income via exemptions and deductions. TDS is calculated on the reduced income, which then reduces the tax liability.

How to Upload Investment Proofs

Know how to upload investment proofs as an employee on the Payroll Dashboard.

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Submit Proofs

Refer to the guidelines below to understand the proofs to submit for the respective components and investments.
The table below summarises how common predefined salary components are treated for income tax under the Old and New tax regimes. Use the search box to filter by component name, section or regime.
Click the respective tabs to understand the exemption criteria and the proofs accepted.
  • HRA exemption is available only under the Old Tax Regime, under Section 10(13A). Under the New Tax Regime, HRA is fully taxable.
  • The exempt amount is the least of the following three:
    1. Actual HRA received from the employer.
    2. 50% of (Basic + DA) for metro cities or 40% of (Basic + DA) for non-metro cities. Under the Income Tax Act, 2025 (effective FY 2026-27), the 50% metro rate applies to eight cities: Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Pune, Ahmedabad and Bengaluru. For prior financial years under the Income Tax Act, 1961, only the original four (Delhi, Mumbai, Chennai, Kolkata) qualified.
    3. Actual rent paid minus 10% of (Basic + DA).
  • The city where you reside determines the metro or non-metro rate, not the city where your employer is located.
  • The rented accommodation must not belong to you or your spouse.
Click the respective tabs to understand the exemption criteria and the proofs accepted.
  • LTA exemption is available only under the Old Tax Regime. Under the New Tax Regime, the entire LTA component is taxed as salary.
  • You can claim LTA two times in a span of 4 years (called a block).
    • The current block runs from January 1, 2026 to December 31, 2029. You can claim two journeys within this block.
    • If you did not exhaust both claims in the previous block (January 1, 2022 to December 31, 2025), you may carry forward one journey, which must be completed by December 31, 2026.
    • You can claim LTA for one trip per calendar year.
  • The journey undertaken must be on your organisation’s working days. Vacations on organisation-allocated holidays are not considered. For example, Sundays.
  • Only the travel cost is exempt. Hotel, stay and food expenses are not exempt.
  • Only economy class travel by air, rail or public transport via the shortest route within India is eligible.
Scroll horizontally on the section names to view the proof submission guidelines.
  • Life Insurance Premium and Public Provident Fund (PPF) Contribution:
    • Premiums paid in the current financial year is exempt under section (u/s) 80C.
    • Submit the receipt of premium paid.
    • Only the premium paid and taxes is exempt. Late fees, taxes on late fees and more are not exempt.
  • National Savings Certificate (NSC):
    • NSC is exempt upto ₹1.5 lakhs in a financial year. Submit a copy of proof of certificates along with the date of purchase and amount.
    • Interest earned on NSC for the first four years is tax-exempt. It is taxable from the fifth year onwards.
  • ULIP/LIC Mutual Funds:
    • Submit a copy of the ULIP statements for all months invested.
  • Childrens’ Tuition Expenditure:
    • Copy of receipts of the tuition and exam fees paid to any university/school/college.
      • Excludes donations, development fees, bus, text books and uniform fees, private tuitions and more.
    • Covers maximum 2 children.
    • If receipt combines tuition fees and expenses, submit the receipt with the amounts break down.
  • Post Office 5 Year Time Deposit Scheme/Other eligible investments:
    • Submit the copy of passbook/receipts/certificates/acknowledgements.
Loan taken to construct a residential property can be claimed as tax exempt in the following conditions:
  • Construction must be completed within 5 years.
  • Maximum of ₹2,00,000 in interest paid for five years is spread out for the next five years to claim.
  • Loan is before April 1, 1999: ₹30,000
  • Loan is after April 1, 1999: ₹2,00,000
  • Loan taken for repair, reconstruction, renewal: ₹30,000 is exempt.
  • Loan must not be a personal loan taken for home use.
Proof submission best practices:
  • Submit the provisional interest certificate issued by your bank that details the principal amount and the interest payable.
  • Submit the posession certificate from builder/society/electricity bill/sale deed/municipal tax receipt.