Your employer is responsible to deduct income tax from your salary. The income tax calculation is affected by factors such as: income other than salary, house rent, investment in certain funds, housing loan interest, and so on.
In the beginning of a financial year, you have to make declarations to the employer on, what investments you intend to make, the rent you intend to pay for the year, the expected income from sources other than salary and so on. The employer uses this information to calculate your income tax more accurately.
To add an Income Tax declaration, follow these steps:
Step 1: Go to Payroll > Income Tax > Income Tax Declarations
Step 2: Add a declaration
Step 3: AttendHRM lists all the declaration types that affects your income tax. Pick a declaration type.
Step 4: Enter Description and the amounts for each month. Click save
Your Income Tax declaration is added to the selected financial year
This information will be used to calculate your income tax, and hence you will need to pay less TDS (Tax Deducted at Source). It’s recommended to make all your declarations at the beginning of the financial year, but you can also make declarations any time during the financial year.
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