Employee Tax Data – An overview

“Employee tax data” component enables to record the tax details on an employee. Typically, payroll administrator records these details. He can record the following details of the employees:

• Employee Tax Details

• Employee Perquisite Details

• Authorize Tax Deductions

• Employee Exception Details

Recording employee tax details: “Employee Tax Details” activity enables you to record the following tax details of an employee. You are to specify the employee and record the following details.

• House rent details

• Children education details

• Section 10 exemptions

• Form 12B details

• Form 12C details

• Section 80 deductions

• Section 88 investments

Recording employee perquisite details: Perquisites are defined as the non- monetary benefits provided by the company to its employees in addition to the regular salary.

You can record the details of the perquisites provided to each employee in the “Employee Perquisite Details” activity. Ramco HRMS categorizes perquisites into three types:

• Rent free accommodation

• Vehicle

• Other Perquisites: These include all the perquisites provided to the employee except accommodation and transportation. Examples are gardener,sweeper, medical benefits, etc.

Authorizing tax declarations: Through this activity, you can authorize the details of all the declarations made by the employees in the “Employee Tax Details” activity or “Record Income Tax Data” activity of the “Employee Self Service” component. You can authorize these declarations for the following details.

• House rent details

•  Children education details

•  Section 80 deductions

•  Section 88 rebates

•  Income from previous employment

•  Income from other sources

Recording employee exceptional details: Through this activity, you can specify the employees for whom tax processing is not required. It indicates that you can exclude all the employees whose earnings is less than the statutory limit from tax processing.

Getting familiar with the activities inside

Go to the activity…	…For
Employee tax details	Recording employee tax details
Employee perquisite details	Recording employee perquisite details
Authorize tax declarations	Authorizing tax declarations
Employee exception details	Recording employee exception details
Authorize Previous Employment Details	Authorizing previous employment details
Outside Payroll Details	Recording outside payroll details
Authorize Submitted Tax Proofs	Authorizing submitted tax proofs