Record Income Tax Data – A summary of the activity
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Through this activity, you can record and modify the tax declarations 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
Recording house rent details: You can record and modify the house rent details for a tax year. You are to specify both the amount declared by the employee as payment towards house rent.
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 system computes the taxable amount that must be added to the taxable income.
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 deduction 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.
Getting familiar with the pages inside
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Use the page… |
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Employee Tax Details |
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House Rent and Children Education Details |
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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 |
The tax year must be defined in the “Create Tax Year” activity.
The employee must be mapped to an employment unit.
The quick codes must be defined in the “Create Quick Codes” activity.
What you can do in this activity
You can record or modify the tax details of an employee
Select the “House rent and Children Education details” page to record the house rent and children education details of an 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.