Employee's 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 by your employer. Income tax is calculated based on the declarations and regime selected.
To navigate to the IT Declaration page, click Salary > IT Declaration.
Declaring your IT declaration
To declare your income tax, perform the following steps:
- If you are declaring IT for the first time, click . Click to modify your IT details if you have already declared IT.
- Fill the details in sections and forms such as Sec 80C, Other Chapter VI-A Deductions, House Rent Allowance, Medical (Sec 80D), Income/loss from House Property, Other Income, Income from previous employment and salary allowance.
- Click Preview to view investment details.
Click Next and Select Regime page open.
As per the notification from the Income-tax department, a regime can be selected only once in the financial year. If you have business income, then regime selection will be restricted for the next financial year and your selected regime will be carried over to the next financial year. The Regime selection is completely dependant on the admin configuration of your settings. Your actions required under Select Regime page will vary based on the admin configuration. However, Regime selection will be available by default if you are declaring your IT declaration for the first time.
You can see a provision to select your business income labeled as Do you have business income?. Click Yes option button if you have a business income. Click No option button if you do not have a business income.
Kindly note this option is admin configurable. You can see this option only if your admin wants to capture your business income details. If your admin does not want to capture your business income details, this option will not be available for you.
Select the required regime from the Select an income tax regime to submit and declare IT drop-down list. This is a mandatory field.
Kindly note this option is admin configurable. Regime selection will be available by default if you are declaring your IT declaration for the first time. Consider that you have declared IT for one time, then you will be able to see this option only if your admin wants to re-capture your regime details. If your admin does not want to re-capture your regime details, this option will not be available for you.
- Select the acknowledgment check box. You will be restricted and cannot click Submit button without the selection of acknowledgment.
Click Submit to declare your IT.
The Submit button will appear at the bottom of the Select Regime page only if the admin releases the IT Declaration for you. Click Submit to send the plan for approval.
A confirmation pop-up appears. Click Confirm to submit the IT declaration for payroll.
As per the notification from the Income-tax department, you can select the Regime only once in a financial year. Under Select Regime page, your regime selection will be locked if you have already selected your regime. If your regime selection is locked, you can see a message showing your selected regime and other details. The message might vary based on your selection of regime and business income. Consider an employee has already selected the regime and business income, then the message shown is given below:
Downloading Form 12BB
Form 12BB is a statement showing the details of your declaration, as mentioned in the investment plan made by you. As per the Income Tax rules, you must submit a hard copy of Form 12BB to the employer along with your signature. After submitting the IT form, clickto download the Form 12BB.
Revising your IT declaration
To revise the already submitted declaration, you must withdraw and revise your IT declaration form. To withdraw and revise your IT declaration form, perform the following steps:
- Click Withdraw and Revise to modify/ revise your IT declaration.
- Withdraw and Revise pop-up appears.
- Select I agree check box.
- Click Revise to start modifying your IT declaration form.
- You can edit or revise your declared income tax by entering the details. Click Submit to submit the revised form.
Kindly ensure to Submit the form. Since the form is withdrawn, your admin can not view and consider your IT declaration form. In case you haven't submitted the revised form, a notification is displayed on the IT Declaration page of your ESS portal. Click Edit to edit and submit the revised form.
My Tax Planner
greytHR provides you with options for creating three different plans with My Tax Planner. These plans help you to decide which combination of investments provides you with the best results in terms of saving income tax. It will be helpful for users who have done any investment or are planning to invest. IT planner will help employees to plan and invest in different sections to gain maximum exemption.
To create plans in My Tax Planner page, perform the following steps:
- On IT Declaration page, click . The Income Tax Planner page opens.
to create IT declaration plans.
- You will be redirected to the IT: Plan page. Click
to add investments information.
To view the investments summary, click
. Click to view the income tax breakup. You will be redirected to Plan - Preview page.
Please note, you're only calculating your taxes. This is not a submission of your IT declaration form. This will give you the complete break up of your salary and your investments and finally arrive at taxable income and liable tax amount.
- On the Plan - Preview page, you can view a detailed comparison between the old regime and new regime, in the plan you have created.
- To create and compare more plans, click and then .
- To edit an existing plan, click
Comparing your IT declaration Plan
You can do a comparison between any two plans after you have created a minimum of two plans. You can also simultaneously compare between the old and new regimes between the two plans. To compare plans, perform the following actions:
- Click button in IT declaration screen. Once the plans have been created, the Compare Plans page opens.
- In the Select plans to compare column, choose any two plans. You can compare only two plans at a time.
- You can view the comparison on the same page in the following table: