Income Tax (IT) declaration is a process that allows employees to estimate their income tax liability for the current financial year. It helps in determining the Tax Deduction at Source (TDS) amount, which is deducted from the employee's salary by their employer.
To create an IT Declaration plan on employee's behalf, the admin must perform the following actions:
- From the greytHR Admin portal, navigate to Payroll > Published Info > IT Declaration. The IT Declaration page opens.
- From the select an employee search box, search for the employee on behalf of whom you want to declare investments.
- 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.
- Fill all the investment details in the following tabs: Deduction - Chapter VI A, Exemptions - Section 10, and Other Income / Section 24.
- 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.
- 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.
- 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.
- Select the required regime from the Select an income tax regime to submit and declare IT dropdown list. This is a mandatory field.
- 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.
- Click Confirm to consider the IT declaration for payroll.
The plan is created and now appears under the Declared by admin section. The plan also appears as Approved for the employee.
❓FAQs- To read more about IT Declaration, click here.
- To learn more about IT Declaration, click here.
- To learn more about viewing employee's IT Statement, click here.
▶Video- To watch the video on IT Declaration, click here.
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