Submit IT Declaration
IT Declaration is a process where employees declare their planned investments and eligible deductions for a financial year. This helps employers calculate and deduct Tax Deducted at Source (TDS) accurately from the employee’s salary. The declared investments may include expenses such as house rent, insurance premiums, and tax-saving instruments under sections like 80C, 80D, and others of the Income Tax Act.
Steps to Submit IT Declaration
- Navigate to the Employees list page: From the left sidebar, go to Employees list page.
- Go to Employee Preview: Click the Preview button in the employee row to open the Employee Preview page.
- Navigate to Investments Tab: Under the Employee Preview, go to the Investments tab.
- Move to the IT Declaration section: Inside the Investments tab, locate the IT Declaration section.
- Click Submit Proofs: Press the Submit Proofs button to start the submission process.
- Enter Investment Amounts: Fill in the amount you plan to invest for each investment category.
- Click Save: Press Save to finalize your declaration.
IT Declaration Categories
The IT Declaration is categorized into various sections where employees can declare their income, investments, and eligible deductions for tax benefits. These declarations help in accurate tax computation and ensuring applicable exemptions under different sections of the Income Tax Act.
House Rent
Provide details of your house rent to claim HRA (House Rent Allowance) exemptions based on your rental payments.
| Name | Description |
|---|---|
| Rental Period From | Start date of the rental period. |
| Rental Period To | End date of the rental period. |
| Amount/mo | Monthly rent amount paid by the employee. |
| City Type | Classification of the city (Metro/Non-Metro) for HRA calculation. |
| Landlord Name | Full name of the landlord. |
| Landlord PAN | PAN number of the landlord (mandatory if rent exceeds ₹1 lakh per year). |
| Country | Country where the rented house is located. |
| State | State where the rented house is located. |
| City | City where the rented house is located. |
| Pincode | Pincode of the rented house's address. |
| Address Line 1 | Primary address details of the rented house. |
| Address Line 2 | Additional address details, if applicable. |
Home Loan
Provide details of your home loan to claim deductions on principal and interest.
| Name | Description |
|---|---|
| Principal Paid on Home Loan | The total principal amount repaid during the financial year. |
| Interest Paid on Home Loan | The total interest paid on the home loan during the financial year. |
| Name of the Lender | The name of the bank, financial institution, or lender providing the home loan. |
| Lender PAN | PAN number of the lender. |
Let Out Property
Declare income from rented properties and claim tax benefits on interest paid on home loans.
| Name | Description |
|---|---|
| Annual Rent Received | The total rent received from the let-out property during the financial year. |
| Municipal Taxes Paid | The total municipal taxes paid for the property, which can be deducted from rental income. |
| Net Annual Value | Annual rent received minus municipal taxes paid. |
| Standard Deduction | A fixed deduction of 30% on the net annual value. |
| Net Income/Loss from House Property | The final taxable income or loss after deductions. |
| Repaying Home Loan for This Property | Indicates whether a home loan is being repaid for this property, making the interest eligible for deductions. |
Investment Declaration Under Other Sources of Income
Declare any income from sources like fixed deposits, savings interest, or any other taxable investments.
| Name | Description |
|---|---|
| Income from other sources | Total income earned from miscellaneous sources apart from salary and business income. |
| Interest Earned from Savings Deposit | Interest income earned from a savings bank account, which may be eligible for deduction. |
| Interest Earned from Fixed Deposit | Interest income earned from fixed deposits, which is fully taxable under 'Income from Other Sources'. |
| Interest Earned from NSC | Interest accrued on National Savings Certificate (NSC), which is taxable but also qualifies for deduction under Section 80C if reinvested. |
80C Investments
Declare investments eligible for tax deductions under Section 80C, such as life insurance premiums.
| Name | Description |
|---|---|
| Select Investment | Select the type of investment eligible for 80C deductions. |
| Amount | Enter the amount invested under the selected category for tax deduction purposes. |
80D Exemptions
Declare health insurance premiums paid for self, family, and parents to claim tax exemptions under Section 80D.
| Name | Description |
|---|---|
| Select Investment | Choose the type of health insurance premium or medical expenditure. |
| Amount | Enter the amount paid for the selected investment. |
Other Investments & Exemptions
Declare any other tax-saving investments or exemptions not covered under specific sections.
| Name | Description |
|---|---|
| Select Investment or Exemption | Select the type of investment not covered under other sections. |
| Amount | Enter the amount invested in the selected category for tax benefits. |
Previous Employment
Declare income earned from previous employment to ensure proper tax calculation for the financial year.
| Name | Description |
|---|---|
| Income After Exemptions | Total income after applying applicable exemptions. |
| Income Tax | Income tax deducted by the previous employer. |
| Professional Tax | Professional tax deducted during previous employment. |
| Employee Provident Fund | EPF contributions deducted by the previous employer. |
| Leave Encashment Exemptions | Exemptions on leave encashment received from the previous employer. |