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IT declaration is the process of obtaining investment declarations from employees at the beginning of every payroll month or financial year. Using employees' IT declarations, you can calculate and deduct TDS (Tax deducted at source) for each employee. You must collect an IT declaration every time there is a change in an employee’s salary or joining a new employee. As the IT declaration process affects every employee's take-home salary, the process must be done accurately.

Using greytHR's IT declaration module, you can easily collect employee's investment declarations in a hassle-free manner. The greytHR IT declaration process consists of the following three simple steps:

  1. Releasing IT declarations for your employees.
  2. Locking your employees' IT declarations.  
  3. Considering your employees' IT declarations.

Additionally, you can perform the following actions on the Employee IT Declaration page:

  1. Configuring greytHR to automate the IT declaration locking process.
  2. Exporting the list of considered employees.

To navigate to the Employee IT Declaration page, click Payroll > Admin > Employee IT Declaration.  


Releasing IT declarations for your employees

To collect investment declarations from your employees, you must release IT declarations at the beginning of every payroll month or financial year. Declaring investments option is not available to employees by default. To release IT declaration for employees, perform the following actions:

  1. Navigate to Payroll > Admin > Employee IT DeclarationEmployee IT Declaration page opens.
  2. Under Release / Lock tab, from the Status drop-down list, select the status as Locked. You can view all the employees with locked IT declarations.

  3. Select the relevant options from the Employee, Employee Filter, Declaration Status, and Join Date drop-down lists. 

    To select the new employees or existing employees who are yet to declare their IT declarations for the current financial year, select the Declaration Status as NOT YET DECLARED

  4. On the right side of the screen, click Release Options

  5. Release Options pop-up appears. In the Release Options pop-up, you can find the following two options: 
    1. Allow employees to acknowledge their Business Income, if any:
      Select Yes or No as per your requirement.
    2. Allow employees to select a regime till:
      Choose a month from the drop-down list.

  6. Click Save to save the Release Options
  7. On the Employee IT Declaration page, select the employees using the check boxes adjacent to the Employee No column.
  8. Click Release Selected to release the IT declaration for the selected employees. 

    You can also click Release All to release IT declaration for all the employees whose IT declaration is Locked. 

Locking your employees' IT declaration

After your employees declare their investments, you must lock their declarations at the end of each payroll month. This helps you in processing each month's payroll accurately. Locking IT declaration is an important step for you to stop taking further inputs from the employees for each payroll month. You can configure greytHR to automate the locking process at the end of each payroll month. To lock the IT Declaration, perform the following actions: 

  1. Navigate to Payroll > Admin > Employee IT DeclarationEmployee IT Declaration page opens.
  2. Under Release / Lock tab, from the Status drop-down list, select the status as Released. All the employees with Released IT declarations are displayed.

  3. Select the relevant options from the Employee, Employee Filter, Declaration Status, and Join Date drop-down lists.
  4. Select the employees using the check boxes adjacent to the Employee No column.
  5. Click Lock Selected to lock the IT declaration for the selected employees. 

    You can also click Lock All to lock IT declaration for all the employees whose IT declaration is Released

Configuring greytHR to automate the IT declaration locking process

You can configure greytHR to lock the IT declaration automatically at the end of every payroll month at the time of creating a new payroll. To lock the IT declaration process automatically, perform the following actions:

  1. Navigate to Payroll > Main > Overview. Overview page opens.
  2. Click Create Payroll. On creating payroll below activities will be done pop-up appears.

    In the pop-up, Release IT Declaration for all employees option is available only when you create payroll for the first time. From next time onwards, Release IT Declaration for employees without declaration option appears. This option helps you keep track of the new employees and the existing employees who are yet to declare their IT savings.

  3. In the pop-up, click here to set a date for automatically locking the IT declaration. Payroll Settings page opens.
  4. On Payroll Settings page, under the heading Employee Declarations, select Enable auto lock IT Declaration. 
  5. From the Declarations will be auto-locked on: drop-down list, select a date to auto lock the declarations.
  6. From the of: drop-down list, select a month option.
  7. Click Save at the end of the page to save the auto lock configuration.

Considering your employees' IT declarations

After locking the employees' IT declarations and before processing payroll, you must consider all the IT declarations. The Consider Declarations tab displays all the declarations pending approval. To consider declarations, perform the following actions:

  1. Navigate to Payroll > Admin > Employee IT DeclarationEmployee IT Declaration page opens.
  2. Under Consider Declarations tab, from the Status drop-down list, select the status as Pending for review.  A complete list of the IT declarations pending for your review is displayed. In the displayed list, you can view details such as Employee No, Employee Name, View Declaration, Submitted ON, and Considered From for each employee.

  3. Select the relevant options from the Payroll Date drop-down calendar, Employee drop-down, and Employee Filter drop-down lists.
  4. Under the View Declaration column, click plan name to view investment details of a plan declared by an employee. IT Savings page opens for the selected employee.

    You can consider a plan from the IT Savings page too. To consider a plan from the IT Savings page, review and save details in all the tabs. Under the Select Regime tab, click Consider to consider the plan.

  5. Select the employees using the check boxes adjacent to the Employee No column.
  6. Click Consider to consider the selected employee's IT declaration. 

    You can also click Consider All to consider IT declaration for all the employees. 

Exporting the list of considered employees

To export a list of employees whose IT declaration is considered, perform the following actions:

  1. Navigate to Payroll > Admin > Employee IT DeclarationEmployee IT Declaration page opens.
  2. Under Consider Declarations tab, from the Status drop-down list, select the status as Considered.  A complete list of the IT declarations which you have considered is displayed. In the displayed list, you can view details such as Employee No, Employee Name, View Declaration, Submitted ON, Considered From, and Considered ON for each employee.
  3. Click Export to Excel to export and download a report with details of considered employees.

Watch the video on how to Release, Lock and Consider Employee IT Declarations below:

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