Employee IT declaration is a page on which you can declare your investment details and select a regime to avail tax benefits and exemptions from tax. You can submit your investment declarations at the beginning of the financial year. New employees can declare investments at the time of joining. Investments can be also be declared at the time of change in salary or investments if the IT declaration window is open.
Income Tax declaration helps your employer to estimate your Income Tax (hereafter referred to as IT) for the current financial year. This deduction is called Tax Deduction at Source (TDS). To take maximum exemptions from TDS, it is important to declare your future investment plans and select a proper regime. You can review your investment plans at any time of the year and modify the values when the declaration window is opened from your employer. Income tax is calculated based on the declarations and regime selected.
To navigate to IT Savings(Declaration) page, click My Info > Salary > IT Savings. On this page, you can create plans and compare any two plans (what-if analysis) and select the one that suits you best.
You can perform the following actions from the IT Savings(Declaration) page.
- Create a plan —You can create a plan as per your requirement. Refer to Creating a Plan to know more about the steps.
- Edit a plan—You can edit a plan that you have already saved. Click the Edit Plan icon ( ) appearing at the top-right corner of a particular plan to edit that plan. A page appears displaying the details of the plan. You can modify your investments as per your requirement.
- Delete a plan—You can delete a plan that you have already saved by clicking the Delete Plan icon ( ) appearing at the top-right corner of that particular plan.
- Clone a plan—You can duplicate any of the displayed plans from this page. Click the Clone Plan icon ( ) appearing at the top-right corner of a particular plan to clone that plan. The plan gets cloned and appears at the starting of the list.
- Compare plans—You can compare between any two plans to decide which one suits you best.
Creating a Plan
Perform the following steps to create a plan:
Click + Create New Plan. The IT Savings <Plan name> page appears.
If you have an already approved plan, then values from the last approved plan are copied under the various sections when you are about to create a new plan. You can modify the declarations as per your requirement.
Old Regime and New Regime
Figure 1: Creating a Plan
- Declare your investments under the following tabs:
- Deduction - Chapter VI A
- Exemptions - Section 10
Income- Previous Employer
Other Income / Section 24
House Rent Allowance
Medical (Sec 80D)
Income/ loss from House Property
Clickat the end of each tab. The declarations are saved, and you are taken to the next sections. The last tab is IT Statement. You will be able to see the Taxable Income and Net Tax based on the investments saved at the top of each page. This will also show you the Maximum Benefit flag to make better decisions.
Under IT Statement tab, you can view and compare the IT statements of old and new regimes based on your investments and latest released payroll. Following are some of the components of IT Statement:
- The taxable components of your salary
- The deductions (PF, Income tax and Prof tax)
Various sections (as per Income Tax department) under which you can make your investments
On expanding the sections, (F Exemptions under Section 10, G Income from previous employer, J Income/ Loss From House Property and K Deduction under chapter VI A) the investments that you have declared are displayed. On clicking the adjacent Edit icon, the respective tabs open. You can make the investments there.
- Taxable Income
- Annual Tax
- Tax Paid so far
- Balance payable
Remarks text box to add remarks.
Click the adjacent tabs to make your investments. The taxable income is calculated based on the investments that you make in the respective tabs.
Click Proceed to Submit button declare IT. A popup appears. This popup gives an overview of comparison between the two regimes in the plan. Select a default regime from the Select drop-down menu. This is a mandatory field. Default regime will be assigned for the employees who have not declared IT. Click Submit to declare IT.
Figure 3: Viewing IT Statement
Figure 4: Confirmation Popup
Comparing the Plans
You can create multiple plans and compare any two plans to decide which one suits you best. Click the checkbox appearing at the top-right corner of the plans and then click Compare Plans. A page appears displaying the comparison between the chosen plans and the old & new regimes.
Figure 5: Comparing Plans
Click Back to plans. The plan is saved and appears under the Draft tab.
Understanding the Draft Section
On clicking the Draft tab, the plans that you have already saved are displayed. You can create multiple plans and then compare any two of them to find which one suits you best. The plans that you have already saved appears on this page with the following details:
- Date on which the plan was last updated
- Option to edit the plan
- Taxable Income of both Old and New regime along with maximum benefit flag
Figure 6: Understanding the Draft Section
Understanding the Declared Section
On clicking the Declared tab, the plans that you have already declared are displayed with the following details.:
- The effective date of the plan
- Taxable income and net tax with the name of the selected regime
Figure 7: Understanding the Declared Section
You can perform the following actions on the plans from this page:
- Clone a plan—You can duplicate any of the displayed plans from this page. Click the Clone Plan icon ( ) appearing at the top-right corner of a particular plan to clone that plan. The plan gets cloned and appears at the starting of the displayed list.
- Compare plans—You can compare multiple plans to decide which one suits you best. Click the checkbox appearing at the top-right corner and then click Compare Plans. A page appears displaying the chosen plans and the comparison.
- Download a plan—Click the Download Plan icon ( ) to download Form 12BB associated with your plan. Form 12BB is a statement showing the particulars of your claim, as mentioned in a particular (declared) plan. As per the Income Tax rules, you must submit a hard copy of Form 12BB to the employer along with your signature.