What Kind of Proof or Details an Employer should take from Employees while Deducting TDS?

In any company collecting, verifying and maintain the information for investment proof is a challenge.

This can be only done if you have the clarity on the kind of information and what evidence need to be collected from the employee

Rule 26 C of Income Tax sheds some light on this topic without clear cut clarity.

Below is the extract of the rule :

The assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192, the evidence or the particulars of the claims referred to in sub-rule (2), in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source.

Below details have to be given for following type of investment or expense:

House Rent Allowance

Name, address and permanent account number of the landlord/landlords where the aggregate rent paid during the previous year exceeds rupees one lakh

Leave travel concession or assistance.

Evidence of expenditure.

Deduction of interest under the head “Income from house property”.

Name, address and permanent account number of the lender.

Deduction under Chapter VI-A.

Evidence of investment or expenditure