Employees are expected to declare their investments in every financial year. It is important to submit the documents and proof to support their investment declarations before the end of financial year. Tax is calculated based on their investment declaration. Empxtrack allows employees to generate TDS advice for the financial year either on the declared investment amount or the actual investment amount.
Empxtrack supports both, the new and old income tax regimes, to allow employees to make the the right choice.
Note: The functionality to seek TDS advice is not available in Empxtrack Free Payroll and HR software. Upgrade to the paid version to allow your employees to generate tax advice in the system.
To generate TDS advice, you need to:
- Log into the system as an Employee.
- Go to Process tab. Scroll down to Salary Records section as shown in Figure 1.Note: The number of tabs showing in the application depends upon the purchase of your modules. Tabs are not shown in Empxtrack Free Payroll and HR software. Upgrade to a paid version to get additional HR modules.
- Click More to view more options and then click Tax advice as shown in Figure 1. The TDS advice page appears.
- Select the income tax regime by clicking on any of the radio buttons Old Regime or New Regime in Tax Calculation On section.Note: When Old Regime is selected, the investment can be calculated on Declared and Actual investments. For New Regime, the tax advice is calculated directly as no investments are declared in this regime.
- Select the investment type (Declared or Actual as shown in Figure 2) for which you want to calculate tax for TDS advice generation from TDS Advice Based On field. The available options are:
- Declared Investment: If this option is selected the TDS would be calculated on the investment declarations that you have provided to the company and the TDS advice would be generated on the calculated amount.
- Actual Investment: If this option is selected the TDS would be calculated on the actual investment proof that you have submitted to the company and the TDS advice would be generated on the calculated amount.
The TDS Advice will be automatically generated according to the selected option.
The page displays the salary amounts Paid Till Date, Projected Amount, Exemption and the Taxable Amount. The page further details the investments that the employee has made and the exemptions that (s)he can get on that amount, as shown in Figures 3.
The page also displays exemptions that you get on the House Rent Receipts provided by the employee based on the Location, and HRA component of the salary.
All the details of investment declarations and deductions are also displayed as shown in Figure 4.
Employees can finally view details of their total tax deducted and exemptions gained.
Click on each of these links to know more about them