Employee Tax Details – A summary of the activity
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Through this activity, you can record and modify the employee tax details for the following tax items.
House rent details
Children education details
Section 10 exemptions
Form 12B details
Form 12C details
Section 80 deductions
Section 88 investments
PAN Declarations
Recording house rent details: You can record and modify the house rent details of an employee for a tax year. You are to specify both the amount declared by the employee as payment towards house rent and the value for which he submits proof to substantiate the declaration made.
Children education details: You are to specify the number of children for whom education expenses are incurred. You can also specify the number of children for whom hostel expenses are incurred. Depending upon the number specified, the employee computes the taxable amount that must be added to the taxable income.
Other exemption Details: You can record all other exemptions given to the employee under Section 10 of Income Tax Act. Examples are “Vehicle Allowance”, “Medical Expenses”, etc. This income is wholly exempted from income tax subject to certain conditions
Recording Form 12B details: You can record the employee’s previous employment tax details for the tax year. Based on these details, the system computes taxes for the tax year.
This is necessary, if the employee changes the organizations in a tax year.
Income from other sources: You can record the income earned by the employee from other heads of income like the income or loss from house property, capital gains or losses, etc. Depending on the declarations made by the employee the system computes taxes on the total earnings from different heads of income
Section 80 Deductions: According to the Income Tax Act, different deductions are allowed in the gross taxable income of the employee if he/she meets certain obligations like payment towards medical insurance premium, repayment of loan for higher education, donations to charitable institutions, etc. In this page, you are to record the declarations and proofs submitted by the employee for the deduction items.
Section 88 Investments: After the income is computed as per the provisions for Income Tax Act, a further rebate of certain amount is allowed from the computed tax income earned provided the employee invests in different securities as specified in the Act. Examples are contribution to statutory provident fund, life insurance premium paid, etc.
Recording employee PAN details: You can record and modify the PAN details of the employee. PAN is the permanent account number issued by the Income Tax department identifying an individual. It is a unique ten-digit alphanumeric number and is quoted in every correspondence with the income tax department. For example, AFRPP1595D.
Viewing Employee tax Information: Apart from recording these details you can also view the status of different tax related item records. The system displays the total number of records that have been declared by the employees for each tax item. It also displays the number of records that are authorized and rejected.
You can also view these details for an individual employee. You are to specify the employee code or name for which the system displays the total number of declarations made by him/her for each tax item and the selected tax year. It also displays the total number of records that are authorized or rejected for the employee.
Getting familiar with the pages inside
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Employee Tax Details |
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House Rent Details |
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Children Education Details |
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Section 10 Exemptions |
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Form 12B (Previous Employment) |
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Form 12C (Other Income) |
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Section 80 Deductions |
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Section 88 Investments |
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PAN No. Declaration |
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Help on employee |
6 Hyperlinked topics below
The tax year must be defined in the “Create Tax Year” activity.
The employee must be mapped to an employment unit
What you can do in this activity
Record tax details of an employee
You can record the tax details for an employee
You can record or modify the tax details of an employee.
Select the “House rent details” page to record the house rent details of an employee.
Select the “Children Education Details” page to record education details of the employee’s children.
Select the “Section 10 Exemptions” page to record the exemption of the employee.
Select the “Form 12B Details” page to record the tax related information about employee’s previous employment.
Select the “Form 12C Details” page to record the other income details of the employee.
Select the “Section 80 Deductions” page to record the deductions on the income of the employee.
Select the “Section 88 Investments” page to record the investment details made by the employee to avail tax exemptions.
Select the “PAN Declarations” page to record the PAN details of the employees.