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Declare Income Tax (IT) on behalf of an employee

Updated on May-2023

Income Tax (IT) declaration helps you estimate the employee's Income Tax for the current financial year. This deduction is called Tax Deduction at Source (TDS). To take maximum exemptions from TDS, it is essential to declare your employee's future investment plans and assign a proper regime.

Investments are usually declared at the beginning of the financial year, when a new employee joins, salary structure changes, and when there is a request from an employee to change investment details and regime.

You/employees can review their investment plans at any time of the year and modify the values. Income tax is calculated based on declarations and regime selection.

IT Declaration page in the greytHR Admin portal helps you assign regimes to employees and declare employees' investment details. As an admin, you can view the plans declared by the employees and create, edit, and delete a plan on their behalf. You can also download an Approved plan.

The page displays the plans under two sections:

  1. Plans created by the employee displays under the Declared by employee section.

  2. Plans created by you displays under the Declared by admin section. These plans are automatically approved.

You/employee can create a maximum of four plans at a time. Each plan displays a regime comparison and the status of the plan, such as Approved, Considered, In Process, and Overridden.

You can perform the following actions on the IT Declaration page:

  1. Declare investments on behalf of an employee.

  2. View comparison between old regime and new regime.

To view the IT Declaration page, click Payroll > Published Info > IT Declaration.

Declare an employee's investments

To declare investments on behalf of an employee, perform the following actions:

  1. On the IT Declaration page, from the select an employee search box, search for the employee on behalf of whom you want to declare investments.

  2. On a blank card, click +Create Blank Plan. The IT Savings <Plan name> form appears.

    Note: If the employee has not created any plans previously, you can only view a single blank card. If the employee has created less than four plans earlier, you can still view a single blank card along with the other created plans.

  3. Fill all the investment details in the following tabs: Deduction - Chapter VI A, Exemptions - Section 10, and Other Income / Section 24.

  4. Click Save & Next at the end of each tab. The declarations are saved, and you move to the following sections. On the IT Statement tab, you can view a comparison of your IT statement as per the old and new regimes. 

  5. Click  Save & Next at the end of the IT Statement tab. The Select Regime tab opens. Select the regime which provides you with maximum benefit.

  6. Under the Select Regime tab, you can see a provision to select business income labeled as Do you have business income? Click the Yes option button if the selected employee has a business income. Click the No option button if the selected employee does not have a business income.

    Note: If you choose the business income and regime here, employees will not be able to select the business income and regime for their future declarations.

  7. Select the required regime from the Select an income tax regime to submit and declare IT dropdown list. This is a mandatory field.

  8. Click Consider to consider IT for the selected employee. A confirmation pop-up appears.

    Note: Click Delete if you would like to delete a plan. To view any other plans at any time, click Back To Plans.

  9. Click Confirm to consider the IT declaration for payroll. 

  10. The plan is created and now appears under the Declared by admin section. The plan also appears as Approved for the employee.

View comparison between old regime and new regime

To view a comparison between the old and new regime, perform the following actions:

  1. On the IT Declaration page, from the select an employee search box, search for the employee for whom you want to make the regime comparison.

  2. Each plan displays a comparison of regimes between the Old Regime and New Regime. Each regime displays the Taxable Income and Net Tax amount based on the plan you create. Also, a Maximum Benefit tag appears to help you in decision-making.

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