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IT declaration is a page on which you can declare selected employee's investment details and assign a regime to them. As an admin, you can view the plans declared by the employees and create a plan on their behalf.  Declarations can be done at the beginning of the financial year, when a new employee joins, salary structure change, and when there is a request from an employee to change investment details and regime.
Income Tax declaration helps you to estimate the employee's 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 employee's future investment plans and assign a proper regime. You can review your investment plans at any time of the year and modify the values. Income tax is calculated based on the declarations and regime selection.

To navigate to IT Declaration page, click Payroll > Published Info > IT Declaration.  Following page appears:


Creating a Plan on behalf of an Employee

Perform the following steps to create a plan on behalf of an employee.

  1. Click select an employee search box. Search for the employee with his/her name or employee Id.

  2. Click + Create Blank Plan. The IT Savings <Plan name> page appears. 

Plans already created by the employee are displayed under the Declared by employee section.

Old Regime and New Regime

On the IT Savings <Plan name> page, you can view a comparison between old regime and new regime. Each regime will show the Taxable Income and Net Tax amount based on the plan you have created. Also, a Maximum Benefit tag will appear to help you in decision making.

Declaring Employee's Investments

To declare employee's investments, perform the following actions:

  1. Fill all the investment details in the following tabs: Deduction - Chapter VI A, Exemptions - Section 10, and Other Income / Section 24.
  2. Click  at the end of each tab.  The declarations are saved, and you are taken to the next sections. On IT Statement tab, you will be able to see a comparison of your IT statement as per the old and new regime. 
  3. You can also add Remarks for the employee while creating the plan on his/her behalf.
  4. Click  at the end of IT Statement tab. You will be taken to Select Regime tab where you can select the regime.

    If you choose the business income and regime here, employees will not be able to choose the business income and regime for their future declarations.

  5. Under Select Regime tab, you can see a provision to select business income labelled as Do you have business income?. Click Yes option button if the selected employee has a business income. Click No option button if the selected employee does not have a business income.

  6. Select the required regime from the Select an income tax regime to submit and declare IT drop-down list. This is a mandatory field.

  7. Click Consider to consider IT for the selected employee. 

    Click Delete if you would like to delete a plan. To view any other plans at any point in time, click Back To Plans.

  8. A confirmation pop-up appears. Click Confirm to consider the IT declaration for payroll. 
     

  9. The plan is created and now appears under the Declared by admin section. The plan also appears as approved for the employee.

Based on the declarations that you make, each plan will show the Taxable Income and Net Tax amount. Also, a Maximum Benefit tag will appear to help you in decision making.

The following texts appear on plans based on their status. 

CONSIDERED— appears when the declaration is considered for calculation.

IN PROCESS—appears when a plan is in the process of getting approved.

OVERRIDDEN—appears when a previously approved plan (of the same month) is overridden by a plan created by the admin.

Apart from creating a plan on behalf of an employee, you can also perform the following actions from this page:

Clone a Plan—You can clone 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 the plan. The plan gets cloned and appears at the starting of the list.

Download a Plan—Click the Download Plan icon () to download Form 12BB associated with a plan. Form 12BB is a statement showing the particulars of the claim, as mentioned in a particular (declared) plan. As per the Income Tax Rules, an employee must submit a hard copy of Form 12BB to the employer along with the signature. 

Delete a Plan—Click the Delete Plan icon () to delete the plan that you have created for the employee. 

Reports

To generate the IT Savings report from the Reports section, perform the following steps:

Navigate to Reports > Reports > Reports Gallery.

  1. In the Search field, search for Form 12BB.
  2. In the Form 12BB page, from the Financial Year drop-down, select the year.
  3. Select the employees from their respective radio buttons.
  4. Select All Employees or Selected Employees.
  5. Click Generate. The report is generated.

The Options button allows you to further customize your report. From the Options page, you can select the output type and also choose if your report has to be password protected. Reports with only PDF output format can be password protected.

The Generate option will generate all the data in a single PDF whereas,

The Generate Employee Wise option will create a zip file with separate folders for each employee.

You can also email the report to the employees using the Email button.