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. The document describes how you can make declarations on income tax over the Employee Self Service.
Step 1: Add a new declaration
I’m investing INR 5000 per month on Life Insurance Premium. Let me show you how to declare that.
Step 2: Â My HRA Exemption will be calculated only if I declare my rent; let me do that as well.
Step 3: Submit Proof of Declaration
When you have proof for the declarations you made, you can submit them here.
Step 4: Summary of your Declarations
Some of the sections under Income Tax have limits. If you have room for more investments under a particular section, you can find it here.
Step 5: Choose the Income Tax Regime
The income tax department allows two different ways to calculate income tax; the old regime and the new regime introduced in year 2020.
The software can automatically choose the regime most beneficial to you.
but in case you want to specify it yourself, you can do so here. During the next time your employer calculates your income tax, the chosen regime will be considered.
Step 6: Â Income Tax Calculation History
 Income Tax Calculation History
Once your employer calculates your income tax, you will be able to see all the details of how your income tax is processed.
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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