Managing year end tax saving submissions

Managing year end tax saving submissions

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

Tax Savings Submission / Year End process is used to get details about the actual savings and to get the supporting documents / proofs from the employee. These declarations should be updated ideally in the month of February or latest before starting March payroll. The process is very similar to "Tax Declarations".  Only difference is that in this process the employees can also submit receipts for house rent and tax free heads for which they have received a tax benefit (if the process has been configured accordingly).

1. Releasing Tax Saving Submissions

Click on "Open Year End Process" button. Please note that once you start the year end process you will not be able to release the tax saving declaration process. 


Start date will be today's date and it cannot be changed. Enter the end date in date box and click on "Release submission". You can decide if you want to release the process for all or if you only want to select those who have not submitted. You can also decide if you want to send alerts or not.


2. Reviewing Tax Saving Submissions

Once the submission process is released the status column will indicate the status of the submissions -
- Not Released : process has not yet been released for this employee
- Not Submitted : employee has not submitted the tax submission
- Submitted : employee has submitted the tax submission
- Approved : tax submission has been approved by Payroll Manager
- Partially Approved : some lines have been approved but there are some lines still in Submitted status

For any payroll before March - system will not allow you to run payroll for records in Submitted status.

For March payroll - system will not allow you to run payroll only for records on Approved status. If Tax saving submission process has not been opened for an employee or if the tax calculation is linked to declaration (refer point 4 below) then March payroll cannot be run for him.

Once tax saving submission process has been released and some new employees join the company, the status for them will show as "Not Released" and you have to release tax saving submission process manually for them.

3. Approving Tax Saving Submissions

Tax saving submissions can approved either by using the bulk approval option or by reviewing and approving submitted records one by one.

3.1 Bulk approving Tax Saving Submissions
This option should be used very carefully as this will approve all records without a review. Within an employee submission there are multiple rows. All rows with a non zero value in "Actual" column will be approved and the "Actual" value will be copied into "Approved" column

3.2 Reviewing and approving one record at a time - Click on "Edit" button on a submitted record.


Actions possible -
- you can download the uploaded supporting documents by clicking on the green download button
- you should update the approved amount in the Approved column and click on Approve button at the end of row
- if you have not received the supporting or for any other reason you do not want to approve a line then you can leave the value in Approved column as blank
- when you click on "Approve" at the bottom of the form if there are any rows where you have not updated approved value then those rows will remain in Submitted status and the employee will be able to make changes to them. Rows where you have updated Approved value or have changed the status to Approved will get approved and employee will not be able to make any changes to them
- to change a row status from Approved to Submitted remove the Approved value and click on "Approve" button on the row
- records which have some rows in Submitted status will be shown as "Partially Approved"

Whenever Payroll Manager approves Tax Saving submission any rows which had been saved as Draft by the employee will be deleted.

Records of employees who have resigned from the company and full and final status has been changed as finalized will be hidden from the Tax Saving Submission process.

4. Linking Tax calculation to Declarations

If you want to run payroll for some employees based on their declaration then click yes on parameter "Do you want calculate for some employees based on their declaration". All employee names will be visible in a table from where you can select for whom the payroll has to be run based on their declaration.


5. Updating Tax Saving Submissions through bulk upload

After releasing tax saving submission process once you can update employees data in bulk by using excel. You can verify and update rent receipts and tax free heads also against the receipts required in year end to provide exemption in payroll.


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

6. Release history

On this tab you can see all the Tax Saving Submission releases. Once a Tax Saving Submission is open the Tax Saving Declaration history is hidden. You can send a reminder alert to employees by clicking "Send Reminder" button, this alert will go only to those who have not yet submitted the submission.




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