Managing tax saving declarations

Managing tax saving declarations

Menu Path: Payroll Manager > Tax Savings
Accessible to : Payroll Manager

For employees who are on Old Regime for tax calculations; tax saving declarations are needed to be updated in the system to ensure that tax benefits of proposed investments / savings are given to the employees. These declarations should be ideally updated in April and modified as the need be. Savings under Section VIA and details on House rent payment, Interest on housing loan are captured in this section. Inputs given in this section are used for tax calculations during the monthly payroll run.

1. Tax saving declaration process

Steps to be followed -
1. Select company from drop down (if you have multiple companies)
2. Select financial year and you will be see the screen shown below


1.1 Releasing Tax Saving Declarations
In the beginning of the financial year the tax saving declarations are to be taken from all the employees. To initiate this process click on the "Open Tax Saving Declaration" button as shown in the image above.

A popup will be appear on screen where start date will be today's date and End date given by you.  First time tax declaration window will be release to all employees which are visible on page and status is "Not Released". Later you have option to release declaration for all employees or only for them where status is "Not Submitted". If you release it for all then even employees who have already submitted their declaration can update their declaration.


Enter End Date and click on "Release Declaration". You can also decide if you want to send alert for this release not. You can also release the process for a specific employee by clicking on Release button on the employee record.

1.2 Approving Tax Saving Declarations
Once the process is released employees will start submitting their declarations. The table as shown below will show the status of submission.


The status column will indicate the status of the declarations -
- Not Released : process has not yet been started for this employee
- Not Submitted : employee has not submitted the declaration
- Submitted : employee has submitted the declaration
- Approved : declaration has been approved by Payroll Manager

To approve a submitted form click on Edit, you will be able to see the declaration details in a popup. You cannot reject the declaration but you can make changes, provide your comments and approve.


You can also approve records in bulk by selecting multiple records and clicking on "Approve" button above the table. This action will change the status of all selected records as approved (even those which are in Not Submitted / Not Released status).

NotesNote
1. Status for non web user will be changed as "Submitted" automatically after the release enabling the Payroll Manager to update details on their behalf
2. After the process is released, the status changes to "Not Submitted" and Payroll manager can update employee's record without waiting for the window to close. Any inputs update here can be modified by the employee till the window is open
3. System will not stop you from running payroll and will include the declarations of records in Submitted status in tax calculations. You need not approve declarations to process payroll
4. For new joiner - If the declaration process has been release even once, to new joiners system will automatically send a notification for tax declaration the moment payroll records of the employee are updated and employee's record is visible on Payroll Manager > Employee Details page on Employee Details tab
5. If an employee's payroll is pending for a previous financial year and you want to release the tax savings declarations for the current year you will not be able to release their records. Either you will have to run their payroll and bring them to the current financial year

2. Controlling visibility of tax saving sections

The sections given in this tab are all as per the Indian tax laws but sometimes companies might not like to allow employees to give declaration under some sections. In which case you can hide some sections from the employees and also remove from the process completely by disabling them from Payroll Manager view also.


If a section has  been deselected it can be re-selected at any point of time and vice versa. If there are multiple companies the visibility of sections cannot be maintained at company level, if a section is removed from one company it will be removed from all companies.

3. Bulk upload of tax saving data

After releasing the declaration window Payroll Manager can updated tax savings data directly on behalf of employee by use bulk upload process.


Steps to be followed -
1. Click on "Download Template" to download template in excel
2. Complete the data in template and click on "Upload" to upload declaration

Notes
Note - if an employee has declared the same head twice in his tax declaration and if you use the bulk upload process to update his declarations or submissions then these records will not come in the bulk excel.

4. Release history

On the last tab you can see the current release if it is still open. You can send a reminder alert to employees by clicking "Send Reminder" button, this alert will go to all the employees included in the release. You can download the list of employees to whom the process has been released by using the "Download List" option.

5. Previous year's records

From this page you can access previous year's tax savings records also. If an employee is mapped to New Regime when March payroll for a previous year was run then his tax saving record is not visible.


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