Back to Answers
IndiaTax & ComplianceUpdated: Sep 13, 2026
Direct Answer
Do not claim deductions based on verbal confirmation. Trace the bank statement for corresponding premium payments or investments. If the payment exists in the bank statement but the receipt is missing, ask the client for the specific document. Unverified claims can lead to automated tax notices.
The Importance of Documentary Evidence
While you don't attach receipts when filing an ITR, you must retain them. The Income Tax Department's risk management systems often flag returns claiming high deductions under Section 80C, 80D, or 80G compared to previous years. If a notice under Section 139(9) or 143(1)(a) is issued, you will have only 15-30 days to produce the evidence.
Steps to Verify Deductions Without Receipts
If a client insists they made an investment but hasn't provided the receipt:
- Check the AIS/TIS: The Annual Information Statement now captures many mutual fund purchases (ELSS), insurance premiums, and PPF contributions. Use this as primary evidence.
- Scan the Bank Statements: Look for outward remittances to known entities like 'LIC of India', 'Star Health', or 'HDFC AMC'. The exact amount and date can serve as temporary validation while you wait for the document.
- Verify Form 16: For salaried individuals, check if the employer already verified and included the deduction in Part B of Form 16.