Restrict POI declarations for specific tax sections for employees in new tax regime

Updated in January - 2026 | 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.

Frequently Asked Questions

What is Proof of Investment (POI)?

Proof of Investment (POI) are the documents submitted by employees to declare eligible investments and expenses for income tax purposes. These include contributions to retirement funds, life insurance premiums, home loan interest, medical insurance, and other tax-saving instruments.

Why is POI submission important?

POI submission helps:

• Reduce employees’ taxable income (where applicable)

• Ensure accurate tax deduction at source (TDS)

• Maintain compliance with Indian income tax laws

What is the new enhancement related to POI in the New Tax Regime?

For employees who choose the New Tax Regime, POI declaration is now restricted to only applicable tax sections, such as:

• Previous Employment

• Section 24 (Income/Loss from House Property)

• Other Income

Are there any restrictions for employees under the Old Tax Regime?

No. Employees who opt for the Old Tax Regime can submit POI declarations for all applicable tax sections without any restriction.

Where can admins view or manage this POI restriction setting?

Admins can view and manage this setting by from, Payroll > Admin > POI Overview.
Click the Settings icon on the right side of the page to view the setting.

Is the setting "Restrict POI Declaration for Non-Applicable Sections in New Tax Regime" enabled by default?

Yes. The Restrict POI Declaration for Non-Applicable Sections in New Tax Regime option is enabled by default.

Related Articles:

• Manage employee's Proof of Investments

• Manage Flexible Benefits Plan (FBP)

• Manage Income Tax (IT) declaration

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