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 RegimeOn 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.
Figure 1: Creating a Plan
- Declare your investments under the following tabs and sections:
- 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
Click The declarations are saved, and you will be taken to the next sections. 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.at the end of each tab.
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.
The taxable income is calculated based on the investments that you make in the respective tabs.
Figure 3: Viewing IT Statement tab
Click Save & Next button to declare IT. Select Regime tab will 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 tab 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.
Figure 4: Viewing Select Regime tab
You can see a provision to select your business income labelled 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 acknowledgement check box. You will be restricted and cannot click Submit button without the selection of acknowledgement.
Click Submit to declare IT.
- The Submit button will appear at the bottom of the Select Regime tab only if the admin releases the IT Declaration for you. Click Submit to send the plan for approval. The plan then appears under the Declared tab.
- Click Delete if you want to delete the plan that you are creating.
As per the notification from the Income-tax department, you can select the Regime only once in a financial year. Under Select Regime tab, 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:
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.