proof of Deduction u/s 80c

This query is : Resolved

RAJU MAGAM (Querist)
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20 April 2010 while giving exemption to employee u/s 80c it is statutory for employer to verify the proof (fees paid to education institute for children)or declaration from employee is sufficient.

chetan soni

chetan soni (Expert)
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20 April 2010 No there should be clear proof of the all investments claimed as deduction u/s 80C.

All this proofs should be verified by the employer. To deduct the tds u/s 192, employer needs to satisfy himself for allowing the deductions.

CA Kapil B Gupta

CA Kapil B Gupta (Expert)
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20 April 2010 No need to statutory verify the proof but employer should get declaration form from employees duly signed by them in a proper manner.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 April 2010 AGREE DECLARATION FROM EMPLOYEE IN FORM 12B IS SUFFICIENT.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 April 2010 Form 12 B is needed in a situation wherein the employee had more than on employer in a previous year. Regarding the query the answer lies in clause 5.4(21) of CBDT Circular No.1/2010 dated 11/01/2010 which is reproduced below.

(21) The Drawing and Disbursing Officers should satisfy themselves about the actual deposits/subscriptions/payments made by the employees, by calling for such particulars/information as they deem necessary before allowing the aforesaid deductions. In case the DDO is not satisfied about the genuineness of the employee’s claim regarding any deposit/subscription/payment made by the employee, he should not allow the same, and the employee would be free to claim the deduction/rebate on such amount by filing his return of income and furnishing the necessary proof etc., therewith, to the satisfaction of the Assessing Officer.