Indian Taxes Self Service – An overview

Indian Taxes - Self Service enables an employee to submit and view his/her tax declarations for a tax year.

Recording Income Tax Data: An employee can make declarations using the “Record Income Tax Data” activity for the following items:

• House rent details

• Children education details

• Section 10 exemptions

• Form 12B details

• Form 12C details

• Section 80 deductions

• Section 88 investments

House Rent Details: An employee can furnish the details of the rent paid towards his/her accommodation. You can record these details for each month and the city in which he/she resides.

Education Allowance Details: You can declare the number of children for whom he/she can avail  exemptions on education and hostel allowance.

Section 80 Declarations: An employee can record a declaration on the deductions to be made from his/her gross total income in accordance to the Section80 of the Income-tax Act. Ramco HRMS lists all the items as specified by the Income Tax A.  The employee can contribute towards these items and can avail deductions from the gross taxable income. The items can be contribution towards certain pension funds, medical insurance premium, maintenance and medical treatment of handicapped dependent, medical treatment for certain specified disease or ailment, repayment of loan taken for higher education, donations to certain funds, charitable institutions, etc., as specified by the Act.

The employee must select the item towards which he/she has contributed for the tax year and specify the value.

Form 12C: The employee can submit a statement of total income earned from different heads of income by allowing him/her to declare the Income/Losses earned from other heads of income. The system computes the total tax liability of the employee and deducts the same from his salary earnings. The other heads of income are “Income from house property”, “Profits and gains of business or profession”, “Capital gains” and “Income from other sources”. Income from other sources indicates dividends, interest earned, and other incomes like lotteries, prizes, etc.

The employee can specify the amount earned under each head. Depending on these declarations, the system calculates the taxable amount and deducts the same during payroll processing of the employee.

Form 12B: The employee can declare the details of income earned and deductions made during his/her previous employment (s) for a tax year. This enables the current employer to calculate taxes precisely. The system records the following details of the previous employer(s):

• The name, address, PAN and TAN of the previous employer(s)

• The period of employment

• Income earned under Section 10

• Value of the perquisites availed

• Total salary earned

• Value of the professional tax deducted

• Contributions made towards LIC premium, provident fund, etc

• The total amount of tax deducted during the year

Rebates Under Section 88: The Record Income Tax Data activity enables the employee to make a declaration of investments made by him/her for the tax year to avail tax rebates. The system lists all items in which if the employee invests, is eligible for tax rebates. Examples are contribution towards public provident fund, contributions towards unit linked insurance plan(s), repayment of Govt. loan(s), subscriptions to any approved equity shares or debentures, etc, as specified by the Act.

Specifying these details enables the employer to calculates the tax liability of the employee and deducts the same from his/her earnings

The finance administrator authorizes all the declarations made by the employee in the “Authorize Tax Declarations” activity of the “Employee Tax Data” component. After authorization, the employee can view these details in the “View Tax Declarations” activity.

Viewing Tax Declarations: Through this activity, the employee can view the details of all the declarations made by him/her in the “Record Income Tax Data” activity or  “Employee Tax Details” activity of the “Employee Tax Data” component. The system displays the following details:

• House rent details

• Children education details

• Section 80 deductions

• Section 88 rebates

• Income from previous employment

• Income from other sources

Getting familiar with the activities inside