One of the important steps for an employee at the beginning of the financial year or upon joining an organization is to submit the Investment Declaration.
The Investment Declaration happens at the start of the Financial Year, the proofs will be submitted at the year-end, by around Dec-Jan.
You can update the declaration on behalf of the employees under various sections.
On the Home page, click “Team”.
Scroll down to the “Employees” section.
Click on “Directory”.
Click on “Employee Taxes”.
Enter the Employee Code/Name.
Click on “View Declaration”.
Tax Option
The employees can choose between the New Tax Regime or the Old Tax Regime depending on what is best suitable from the Tax planning point.
Please Note:
Income Tax will be computed based on the Tax Regime selected.
Old tax regime, the exemption will be as per the declaration made.
New tax Regime, only the exemption for 80CCD (2) (NPS) declarations will be provided.
Select the Tax Option from the drop-down as either Old Regime or New Regime.
Click “Save”.
To update the Tax Option for more than one employee, Click on “Import Tax Option Selection”.
Click on 'Download Template'.
Enter the details.
Save the file to your local drive.
Click on “Choose File”.
Click ' Import'.
You can also click on “Export Tax Option Selection” if you would like to export the tax options for all the employees.
Click “Close”.
Deduction under Section 16
Standard Deduction will be automatically calculated by the System as per the Income Tax Rules
Professional Tax will be based on the PT deducted from the salary for the Financial Year.
Please note for all the following Sections like Employee Previous IT Details, Exemption under Section 10, House Rent Receipt, Deduction under Chapter 6A, and Other Income
Update the declared amount under the “PLANNER”. This will be considered for tax calculation till the Investment proof collection starts.
When the proofs are submitted, the actual value of the proofs should be entered under the “ACTUAL” column.
We will now look at updating the individual sections.
Employee Previous IT Detail
If the employee has joined in between the financial year, it is important to declare the previous employer's Income with the current Employer so that the tax for the entire financial year is calculated appropriately.
Click on “Employee Previous IT details”
Enter the following details as per your statement from the Previous Employer for that Financial Year i.e., from April/Date of Joining till the last date of the Previous Employment.
Total Earnings (After Section 10 Exemptions)
Tax Amount
Standard Deduction
Employer PF
These will be available in Form 12B issued by the former Employer.
Upload the Statement by clicking “Choose File”.
Check the box if Leave Encashment and Gratuity needs to be exempted.
Click “Save”
Click “Close”
Exemption Under Section 10
Update declaration towards all Section 10 Exemptions except for House Rent.
All components under Section 10 will be displayed.
For example, if the Employee wants to avail of the LTA exemption, then you will enter the exempted amount under Planned.
During the proof submission time, you will attach the bills and enter the actual amount under “Actuals”
For example, if an Employee has declared 100000 at the beginning of the year, you will update 1,00,000 in the Planned column. During the proof submission, if Employee’s claim is 75000, you will enter 75000 in the Actual column.
Attach the bills.
Click “Save”
House Rent Receipt
As per Income Tax Rules, if an employee is staying in a Rented House, the employee can get tax exemption for HRA by declaring the Rent Paid Details.
Click on HRA to submit the Rent Paid Details
Update the Owner's Information. The owner's PAN is mandatory if the Annual rent is more than INR 1,00,000 per annum.
To update the Owner’s information, follow the below steps:
Tick the “Owner’s PAN Details” checkbox
Click “Add New".
Enter the following details:
From Date
To Date
Name of the Landlord
Address of the Landlord
PAN Number of the Landlord
Update the Rent amount say April, or the month Employee is availing the HRA and for the balance months, the rent will be auto-filled with the same amount till March. If there is any change in the rent amount, you can edit only from that month onwards. For E.g. If the rent from January needs to be edited, enter the new rent from January to March.
Check the box “METRO”.
Update “Remarks”
Click “Save”
Click “Close”
Deduction Under Chapter VI A
All Investments under Chapter VI A like NSC, PPF, Home Loan Principle, Mutual Fund, Medical Insurance, etc. are allowed as deductions to get more tax benefits.
Here you will see all the options available under Chapter VI A. We have also included Maximum Eligibility allowed under the respective Section. For E.g. For all Line items under Section 80C, the maximum declaration allowed is INR 1.50 lacs either individually or collectively.
Update the Amount against the applicable investment Head.
As there are various limits under Medical Insurance Premiums, we have created separate sections for 80D. You need to carefully read the various options available under Section 80D and update the amount as applicable.
Click “Save”.
Other Income
Under this, you have 3 options.
Income From Other Sources
Income / Loss from House Property (Let Out)
Interest on Home Loan (Self-Occupied)
Income From Other Sources
Update any Income other than Salary under Income from Other Sources.
Income / Loss from House Property (Let Out)
Calculate the Income / Loss from House Property as per the Income Tax Guidelines and update the final value under “Income / Loss from House Property (Let Out).
If the calculated value is Income, then Update the Positive amount, and if it is a Loss update the Negative amount.
Interest on Home Loan (Self-Occupied)
If you have Home Loan for Self-Occupied Property, update the total Interest paid / payable under Interest on Home Loan (Self Occupied).
As per Income Tax Rules, the Employee will be eligible for benefits up to 2 lacs.
Click “Save”.
With this, the update of Investment Declarations on behalf of the Employee is completed.