Employers are required to deduct tax from an employee’s taxable income. This is Tax Deducted at Source (TDS). In order to make the correct TDS calculation from the beginning of the financial year, the employer needs a declaration from the employee about the deductions and exemptions to which he or she is entitled.
Throughout the year, your tax would be deducted on the basis of the information you provide. One or two months before the financial year ends, you need to submit documentary proof of your actual investments in the financial plans that you had declared so that tax adjustments can be made and correct amount of tax can be deducted from your income.
If you do not make any investment declarations, your company will deduct tax from your salary and to get it back you have to file a return file to Income tax department.
To declare investments, you need to:
1. Log into the system.
2. Roll on the cursor to My Profile tab and then select My Salary & Benefits option, as shown in Figure 2-26-1.
The My Salary Details page appears, as shown in Figure 2-26-2.
3. Click My Declarations tab.
The page allows you to view the past investment details that you have already made in the View Past Declarations section. The page also allows you to provide new investment declarations.
You can copy the previous year’s investment details if you want to invest in the same schemes again.
4. Click Copy Declarations from Prior FY to copy the previous year’s investment details. The previous years details appear. You can now modify the details, if required.
5. Click Add More to add more investment details.
The Add Declaration window appears, as shown in Figure 2-26-3.
6. Click on the Investment Section dropdown. The dropdown appears with a list of saving schemes under which you can invest your money.
7. Select the type of investment that you want to make from the Investment Section dropdown.
The Investment Name dropdown is populated with the various investments schemes that are available under the selected investment type in Investment Section dropdown, as shown in Figure 2-26-4.
8. Select the investment scheme in which you want to invest from Investment Name dropdown.
9. Provide the amount that you want to invest under the selected scheme in the Declared Amount field of the record, as shown in Figure 2-26-5.
10. Click Save.
You have successfully provided your investment declaration details and a message suggesting the same appears, as shown in Figure 2-26-6.
Your investment details are now available to your HR manager.
You can repeat the same process to add more investment details