Tax Declaration Process

Overview

HRMates Tax Declaration Process provides employees who have taxable income to declare tax saving investments, other incomes and past employer income as per tax rules of the country. HRMates uses this data in tax calculation in payroll. The process occurs thrice in financial year

  • Beginning of financial year

Tax Declaration form is available to employees in notification for submitting actual and proposed investments. Monthly tax deductions will be calculated.

  • During the financial year

Employees can modify the form with any change in investment plan. Monthly tax deductions will be recalculated for remaining months.

  • End of financial year

Employees have to submit proof documents for actual investment. Approver will verify and send the actual approved amount. Monthly tax deductions will be recalculated for remaining months.

Setup

  • Setup the Tax Declaration Approvers for tax finalization in Permissions

Tax Declaration Form

Contains 

  • Sections and sub heads under IT Act with provision for Amount, Proof File and Approved Amount
  • Provision to declare Income and tax Paid from previous employer for new joinings

Tax Declaration start in beginning of financial year

If set up, the Tax Declaration process will start automatically at the beginning of the financial year for employees having taxable salary as per tax rules for the financial year. Employees will see notification to submit a Tax Declaration on their dashboard. At this stage employees need not submit proof documents along with declarations.

During the year employees can change the declaration from My Salary → Tax Declarations ⇒ Modify.

For new employees Tax declaration notification will come on there dashboard if they have taxable income. New Employees can also all Taxable Income and Tax Paid from previous employer in Tax Declaration form.

Tax Calculation

Every month tax is recalculated for the entire year, less tax already paid and then prorated by remaining months in the financial year. Employees and managers can see detailed tax calculation from My Salary or Salary Administration

Tax Declaration Finalization for Salary Administrator

  • Setup Tax Declaration Approver from Permissions → Tax Declaration Approvers.

If multiple approvers are defined anyone can approve.

  • Salary Administrator will kick off Tax Declaration Finalization by clicking on Salary Administration → Start Approvals. This will show following message

This will restart Approval Process for Tax Declaration Forms as per the policy for Year: <year>. 79 Total Tax Declarations, 30 Tax Declarations with no data and 0 tax will be deleted.

Do you want to Continue?

If you continue, Employees will see notification on their dashboard to submit final declarations. In this step submitting proofs as file attachment will be required.

  • After the Submission approving person will see notification on his dashboard for approval. Approving person can change the declared Amount in the Approved Amount field.
  • Salary generation will be blocked until the Tax Declaration is submitted and approved. Generated salary will use the Approved amount for tax calculation for remaining months.
  • Salary Administrator can see list of Pending Tax Declaration Forms for Submission and Approval in Salary Administration ⇒ Tax Declarations
  • Salary Administrator can see Tax Declaration Report