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View and edit income tax (IT) components

Updated inย November- 2023 |ย Subscribe to watch greytHR how-to video

The income tax components in payroll software are an essential part of ensuring compliance with tax laws and regulations, maintaining accurate payroll records, and minimizing the risk of costly errors or penalties. The purpose of editing income tax components in payroll software is to ensure that the correct amount of taxes is being withheld from an employee's paycheck in accordance with the relevant tax laws and regulations.

The Income Tax page in the greytHR Admin portal helps you to view and edit the income tax component details for employees individually. The page also displays the selected employee's current Tax Regime selection. The application divides the components between various tabs. These tabs are Income, Income from Previous Employer, Exemptions, Perquisite, Deductions, Other Income, House Property Income, Regime, and Result.

To view the Income Tax page, click Payroll > Payroll Inputs > Income Tax.

You can perform the following actions on the Income Tax page:

  1. View income details.

  2. Add income details from previous employer.

  3. Add HRA exemption.

  4. Add other exemption details.

  5. View perquisite details.

  6. View deductions details.

  7. View and add Chapter VIA deductions details.

  8. View and add other income details.

  9. Add interest on housing loan details.

  10. Add income/loss from Let Out Property.

  11. Choose regime.

  12. View and verify Income Tax results.

  13. Preview and download the Income Tax report.

View income details

The Incomeย tab displays the various components of the employee's Income Tax for the entire financial year. The tab also displays the Total Annual Salary and the Total Ad-hoc Salary amount for the selected employee.

Add income details from previous employer

If an employee has joined in the middle of a financial year, you can add the employee's income details from the previous employer on the Income Tax page. To add the details for the current financial year, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the Income From Previous Employer tab, double-click on an empty row cell under the Month column to start adding the details.

  3. From the Month dropdown list, select the month for which you are adding the income details.

  4. Repeat the procedure for the remainingย columns, i.e., Income After Exemption, Professional Tax paid, PF paid, Total Tax paid, and LTA Exemption.

  5. Click Save to save the income details from the previous employer.

    Note: The application calculates Income Tax, Surcharge, and Cess automatically based on the values entered.

Add HRA exemption

To add/edit the HRA exemption, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the Exemptions tab, click Monthly Rent. The House Rent pop-up appears.

  3. In the first text box, enter the amount employee pays monthly towards house rent and click the Meatball button (โ€ฆ) to add the value to the table.

  4. In the second text box, enter the appropriate HRA amount and click the Meatball button (โ€ฆ) to add the value to the table.

  5. Click Save to save the values and Close to close the pop-up.

    Note: If you are editing the existing HRA amount, click Clear to clear the table and start with step 3.

  6. Click Rent Proof Info to add the employee's rent proof details.

  7. Add the relevant details, click Save and Close to finish adding the rent proof details.

  8. Select Is Proof Submitted.

  9. Click Save to save the exemption details.

  10. Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Add other exemption details

To add other exemption details for the selected employee, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the Exemptions tab, the other exemptions are available under the section Other Exemptions. Let us take the example of LTA Exemption.

  3. Select the LTA Exemption checkbox and left-click the text box to enter the exemption amount.

  4. Click Save to save the exemption details. A success message appears.

  5. Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

The Exemptions tab now displays the Total Exemptions Amount based on your changes.

View perquisite details

Perquisites are additional benefits an organization offers to its employees free of cost or at discounted rates. These benefits are taxable for employees. The Perquisite tab displays the perquisite calculation for the selected employee.

View deductions details

This Deductions tab displays statutory deductions like PF. Once you, as an admin, consider the employee's IT declaration, the amount of the deductions reflect here. The tab also displays the Total Chapter VI A Deduction and Total Prof.Tax amount.

Add Chapter VIA deduction details

Under the Deductions tab, you can add deduction details related to Chapter VIA for an employee. To add the details, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the Deductions tab, from the Section dropdown list, select 80C and Others. The table displays the related components.

  3. Under the Narration column, double-click an empty row and select the component related to Chapter VIA. The Section and Max Limit amount automatically display.

  4. Double-click the cell under the Gross column to enter the amount employee has invested in the scheme. The Qualifying amount automatically displays.

  5. Select the checkbox under the Proof column, if applicable.

  6. Double-click the cell under the Remarks column to add remarks, if any.

  7. Click Save to save the deduction details. A success message appears.

  8. Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

View and add other income details

Under the Other Income tab, you can view the Other Income and Short Term Income details of the selected employee. To view and add other income details, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the Other Income tab, in the Other Income table, under the Description column, double-click an empty row and select the required option. The Max Limit amount of the selected option automatically displays.

  3. Double-click the cell under the Amount column to enter the amount employee has received.

  4. Double-click the cell under the Remarks column to add remarks, if any.

  5. Click Save to save the details. A success message appears.

  6. Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Add interest on housing loan details

The House Property Income tab displays the Interest on Housing Loan (Self Occupied)ย andย Total Income/Loss from Let Out Property. Based on the inputs provided by the employee in the Self Occupied and Let Out Property sections, theย application calculates the Total Income from House Property.

You can add the lender's details under the House Property Income tab. To add the details, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the House Property Income tab, in the Income from self-occupied property table, left-click the cell under the Amount column to enter the amount.

  3. In theย Lender's Nameย text box andย Lender's PANย number, enter the relevant details.

  4. Click Save to save the details. A success message appears.

  5. Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Add income/loss from let out property

Under the House Property Income tab, you can calculate and add the selected employee's income/loss from the property employee has let out on rent. To add the details, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the House Property Income tab, in the Income from Let-out property table, left-click the cell under the Amount column to enter the amount against each detail in the Particular column.

  3. Click Save to save the details. A success message appears.

  4. Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Note: If the employee has let out more than one property on rent, you can click Add Let-out Property to add details of the second property.

Choose regime

To choose a regime for the employee on behalf of whom you are editing Income Tax, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the Regime tab, from the Regime dropdown list, choose a regime.

  3. Click Save to save the details. A success message appears.

  4. Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

View and verify income tax results

The Result tab displays the summary of the Income Tax calculations. The tab displays Income Tax, Surcharge, Education Cess, Total amount, and Remaining Months in the current financial year for calculating tax. You can also use this tab to verify the tax calculation amount.

To verify the Income Tax calculations, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under the Result tab, click Verify. A success message appears.

Preview and download the Income Tax report

To preview and download the Income Tax report, perform the following actions:

  1. On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.

  2. Under any tab, click Preview to view the Income Tax report in the browser.

  3. Click Download to download the Income Tax report in excel format.

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