Conditions and tax benefits available for income tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2016 Dear Experts,

I am working in a pvt ltd company as a taxation executive. I want to be guided by you about conditions and income tax benefits available for home loan. We have a employee who is having two home loans running from two difference banks. Till last year he was submitting us home loan certificate of standchart bank. But in this year he submitted the home loan certificate of IDBI bank as the loan is high compared to standchart. We refused to accept IDBI Home Loan certificate as a proof and requirement to allowed benefit U/s 80 C and income from home property benefits simply because for last few years he was submitting standchart certificate. We informed him that home loan benefits allowed for only one home and that too for the first purchaser. Apart from this he should be staying in the said house. But he is insisting and arguing that income tax dept do not check all this.

Now my queries are as below :
1. Can company refuse to accept investment proof required for deduction for U/s 80C if not satisfied.

2. What if we accept his second home loan as a proof for U/s 80C benefits and incase there is a income tax scrutiny then what will be the repercussions on the company for allowing such thing.

Kindly give me detailed advice and any notification or circular regarding this.

Regards,

DM

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 February 2016 1 Yes the company can refuse 80C deduction not satisfied with the proof/wrong claim.
2 If wrong claim is allowed dept may demand the short deduction from the company.

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