Declare Investments

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Employers 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.

Declare Investments as an Employee

To declare investments, you need to:

  1. Log into the system as an employee.
  2. Go to Process tab. Scroll down to Salary Records section and click More hyperlink. Click My declarations as shown in Figure 1.

    Note: My declarations functionality is not available in Free Payroll. Employees can’t use this functionality, but HR manager can setup investment declaration on behalf of employees. To get My Declarations functionality in Free Payroll, upgrade it to a paid version.

    Figure 1

    The My Declarations page appears as shown in Figure 2. You can setup your tax declarations on this section for the current financial year. The past year declarations are available below.

    As an employee you can submit declarations only when the time period for changes is enabled that can be enabled by your payroll administrator.

    Figure 2

  3. The page allows you to provide new investment declarations. You can either copy declarations from the previous financial year if you want to invest in the same schemes again or add new investment declarations. The page also displays past investment details that you have already made in the View Past Declarations section. To know more about viewing previous years declarations, click here.
  4. Click Copy declarations from prior FY to copy the previous year’s investment details if you want to continue the same schemes. 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 3. While adding a declaration, you should select the section and sub-section (as applicable), enter the amounts and attach the relevant documents before submitting. Payroll administrator will review your submission and mark it as accepted or rejected.

    Figure 3

  6. Select the type of investment from the Investment section dropdown. The dropdown appears with a list of saving schemes under which you can invest your money. The Investment name dropdown is populated with the various investments schemes that are available under the selected investment type.
  7. Select the investment scheme in which you want to invest from Investment name dropdown.
  8. Provide the amount that you want to invest under the selected scheme in the Declared amount field of the record.
  9. Click Save.You have successfully provided your investment declaration details and a message suggesting the same appears. Your investment details are now available to your HR manager. You can repeat the same process to add more investment details.

Declare Investments as an HR Manager

Note: In Free Payroll, employees do not have an option to declare investments, instead HR manager would be able to manage declarations on their own. Learn steps how HR can manage employee investment declarations in Free

  1. Log into the system as an HR manager.
  2. Go to Process tab. Scroll down to the Payroll section, click Manage Declarations to setup investment declarations for employees.
  3. On the Manage Declarations page, you can view the declarations for all employees (section wise) for the selected financial year and download data report for actual/ declared values.
    manage-declarations

    Figure 4

  4. To edit employee declarations, either scroll to the extreme right and click on Edit icon or click on the row for a specific employee whose details you want to edit. Employee declaration details will be displayed in a new window.
    manage-declarations-employee

    Figure 5

  5. You can add new investments, make changes or copy from a prior financial year in the edit page. Refer to the steps 3 to 9 given above (in the section of Declare Investments as an Employee).To manage declarations for other employees, click Change employee link as shown in Figure 5, and repeat similar steps to make changes or add investment declarations for another employee.

Next link

View Previous Year’s Declarations

Click on each of these links to know more about them