Restrict POI declarations for specific tax sections for employees in new tax regime
Updated in November - 2024 | Subscribe to watch greytHR how-to video
Proof of Investment (POI) refers to documents provided by employees to confirm their eligible investments and expenses for tax deductions. These can include receipts or statements for contributions to retirement funds, life insurance premiums, home loan interest, medical insurance, and other tax-saving instruments.
In payroll and tax management, submitting POI helps employees reduce their taxable income and ensures compliance with tax laws, as employers adjust tax deductions accordingly.
For employees choosing the new tax regime, payroll admins can now allow POI declarations to only relevant tax sections, such as Previous Employment, Section 24 (Income/Loss from House Property), and Other Income.
Note: Employees choosing the old tax regime can submit their POI for all the tax sections without any restrictions.
The Restrict POI Declaration for Non-Applicable Sections in New Tax Regime option is enabled by default. To view the option from the greytHR Admin login to Payroll > Admin > POI Overview.
Click the Settings icon on the right side of the POI Overview page to view the Restrict POI Declaration for Non-Applicable Sections in New Tax Regime.
Additional points:
Disabling the Restrict POI Declaration for Non-Applicable Sections in New Tax Regime option allows employees to submit POI declarations in both the old and new tax regimes.
Note: Delete the existing POI and re-release it to update changes in the ESS portal.
If employees (ESS portal) in the new tax regime attempt to submit POI for restricted sections, the system blocks the submission and guides them to use only allowed sections.
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