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Declare income tax

Updated in February-2024 | Subscribe to watch greytHR how-to video

An Income Tax declaration helps your employer to estimate your Income Tax (IT) for the current financial year. This deduction is called Tax Deduction at Source (TDS). To take maximum exemptions from TDS, it is important to declare your future investment plans and select a proper regime. 

The IT Declaration page in the greytHR ESS portal allows you as an employee to declare the income tax. You can submit your investment declarations at the beginning of the financial year. New employees can declare investments at the time of joining. Investments can also be declared at the time of change in salary or investments if the IT declaration window is open.

Watch our employee IT declaration ESS video for more clarity:

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You can perform the following actions on the IT Declaration page:

  1. Declare your Income Tax.

  2. Download Form 12BB.

  3. Revise IT declaration.

  4. Create new plans.

  5. Compare IT declaration plans.

To view the IT Declaration page, click Salary > IT Declaration.

Declare your income tax

To declare your Income Tax, perform the following actions:

  1. On the IT Declaration page, Click Start now If you are declaring IT for the first time. You can also click Edit to modify your IT details if you have already declared IT.

  2. Fill in the details in sections and forms such as Sec 80C, Other Chapter VI-A Deductions, House Rent Allowance, Medical (Sec 80D), Income/loss from House Property, Other Income, Income from previous employment, and Salary allowance.

  3. Click Preview to view investment details.

  4. Click Next to view a comparison between the old and new regimes. You can see a detailed comparison between the two regimes on this page.

  5. Click Next and then Select Regime page opens.
    Note

    • As per the Income-Tax department notification, a regime can be selected only once in the financial year. 

    • If you have business income, then regime selection will be restricted for the next financial year, and your selected regime will be carried over to the next financial year. However, regime selection will be available by default if you are declaring your IT declaration for the first time. 

  6. You can see a provision to select your business income labeled as Do you have business income?. Click the Yes button if you have a business income. Click the No button if you do not have a business income.
    Note: Kindly note this option is admin configurable. You can see this option only if your admin wants to capture your business income details. If your admin does not want to capture your business income details, this option will not be available for you. 

  7. Select the required regime from the Select an income tax regime to submit and declare IT dropdown list. This is a mandatory field.

  8. Select the acknowledgment check box. You will be restricted and cannot click the Submit button without the selection of acknowledgment.

  9. Click Submit to declare your IT.
    Note: The Submit button will appear at the bottom of the Select Regime page only if the admin releases the IT Declaration for you. Click Submit to send the plan for approval. 

  10. A confirmation pop-up appears. Click Confirm to submit the IT declaration for payroll. Note: On the Select Regime page, your regime selection will be locked if you have already selected your regime. If your regime selection is locked, you can see a message showing your selected regime and other details. The message might vary based on your selection of regime and business income. Consider an employee has already selected the regime and business income, then the message shown is given below: 

Download Form 12BB

Form 12BB is a statement showing the details of your declaration, as mentioned in the investment plan made by you. As per the Income Tax rules, you must submit a hard copy of Form 12BB to the employer along with your signature. After submitting the IT form, click Download Form 12BB to download Form 12BB.

Revise IT declaration

You must withdraw and revise your IT declaration form to revise the already submitted declaration. To withdraw and revise your IT declaration form, perform the following actions:

  1. On the IT Declaration page, click Withdraw and Revise to modify/revise your IT declaration. The Withdraw and Revise pop-up appears.

  2. Select I agree check box. 

  3. Click Revise to start modifying your IT declaration form.

  4. You can edit or revise your declared Income Tax by entering the details. Click Submit to submit the revised form.
    Note: Kindly ensure to Submit the form. Since the form is withdrawn, your admin can not view and consider your IT declaration form. In case you haven't submitted the revised form, a notification is displayed on the IT Declaration page of your ESS portal. Click Edit to edit and submit the revised form.

Create new plans

greytHR provides you with options for creating three different plans with My Tax Planner. These plans help you decide which combination of investments provides you with the best savings income tax results. It will be helpful for users who have done any investments or are planning to invest. IT planner will help employees to plan and invest in different sections to gain maximum exemption.

To create plans in My Tax Planner page, perform the following steps:

  1. On the IT Declaration page, click My Tax Planner. The Income Tax Planner page opens.

  2. Click Create Plan to create IT declaration plans.

  3. You will be redirected to the IT: Plan page. Click Add to declaration to add investments information.

  4. To view the investments summary, click Preview. You will be redirected to Plan - Preview page.
    Note: Please note you're only calculating your taxes. This is not a submission of your IT declaration form. This will give you a complete break up of your salary and your investments and finally arrive at taxable income and liable tax amount.

  5. On the Plan - Preview page, you can view a detailed comparison between the old regime and the new regime in the plan you have created.  

  6. To create and compare more plans, click IT: Plan C, and then click Income Tax Planner.

  7. To edit an existing plan, click View Plan to view or edit the plans individually.

Compare IT declaration plan

You can do a comparison between any two plans after you have created a minimum of two plans. You can also simultaneously compare the old and new regimes between the two plans. To compare plans, perform the following actions:  

  1. Click the My Tax Planner button on the IT declaration screen. After the plans get created, the Compare Plans page opens.

  2. In the Select plans to compare column, choose any two plans. You can compare only two plans at a time. 

  3. The comparison of plans now appears in a table format on the same page.  

  4. After a comparison of plans, click Proceed to Submit to choose a tax regime.

  5. On clicking the Proceed to Submit button, the Select Regime page opens. 
    Note: As per the notification from the Income-tax department, a regime can be selected only once in the financial year. If you have business income, then regime selection will be restricted for the next financial year, and your selected regime will be carried over to the next financial year. The regime selection is completely dependent on the admin configuration of your settings. Your actions required under the Select Regime page will vary based on the admin configuration. However, regime selection will be available by default if you are declaring your IT declaration for the first time. 

  6. You can see a provision to select your business income labelled as Do you have business income?. Click the Yes option if you have a business income. Click the No option if you do not have a business income.
    Note: Kindly note this option is admin configurable. You can see this option only if your admin wants to capture your business income details. If your admin does not want to capture your business income details, this option will not be available for you. 

  7. Select the required regime from the Select an income tax regime to submit and declare IT dropdown list. This is a mandatory field.
    Note: Kindly note this option is admin configurable. Regime selection will be available by default if you are declaring your IT declaration for the first time. Consider that you have declared IT for one time, then you will be able to see this option only if your admin wants to re-capture your regime details. If your admin does not want to re-capture your regime details, this option will not be available for you.

  8. Select the acknowledgment check box. You will be restricted and cannot click the Submit button without the selection of acknowledgment.

  9. Click Submit to declare your IT.
    Note: The Submit button will appear at the bottom of the Select Regime page only if the admin releases the IT Declaration for you. Click Submit to send the plan for approval. A confirmation pop-up appears. 

  10. Click Confirm to submit the IT declaration for payroll.
    Note: You will be able to submit IT, only if the declaration window is open. Once submitted, the new plan will override the existing submission.
    Info: As per the notification from the Income-tax department, you can select the Regime only once in a financial year. Under the Select Regime page, your regime selection will be locked if you have already selected your regime. If your regime selection is locked, you can see a message showing your selected regime and other details. The message might vary based on your selection of regime and business income.

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