What is the difference between declared and verified amounts?
- Declared amount means the unverified amount that the employee has declared for investment.
- After the employee has submitted the investment declaration, the documents are verified and after verification, the final amount is called as the verified amount.
Example: An employee, Raj has declared 15000/- however, he has produced medical bills only of Rs 10000. Thus, after verification, the admin will enter the Verified amount as 10000 and this amount is going to be considered in the final tax exemption. The disallowed amount of Rs 5,000 (Rs 15,000 – Rs 10,000) will be added back to the employee’s taxable income.