It’s that time of the year when your employees have to submit investment proofs for tax-saving investments declared at the beginning of the financial year.
As a general notion in India, employers seek investment declaration from their employees twice every year – one at the beginning of the financial year, and another during December-January.
The first one is just a declaration of tax-saving plans for your employees, and the second one is the submission of proof that the tax-saving investments were made as planned.
If your employees fail to submit proofs, a huge chunk from their salary might be deducted as TDS. However, this situation can be avoided through RazorpayX Payroll.
RazorpayX Payroll simplifies the tedious process of investment declaration and proof submissions for your employees. The software allows employees to calculate their tax liability under the old & new tax regime, helping them plan their taxes, and declare investments. Also, it automatically triggers reminders for investment proof submission around the cut-off date.
The cut-off date for proof submission in RazorpayX Payroll is 15th of January 2021.
Let’s have a look at the process.
Your employees can log in to their personal account and upload their investment proofs under ‘Tax Deductions’. Or, they can just click on https://payroll.razorpay.com/taxDeductions, and upload related documents.
Voila, it will be done in a flash!
We understand that there can be some tax-saving investments where the payments are due in the later months of FY 2020-21.
In such cases, your employees can upload partial or previous year’s investment proofs (if any). The software will validate it accordingly and provide an accurate claim. Your employees can update the proofs once the actual payments are made. But, these changes will require your approval.
Once your employees are done with the submission, RazorpayX payroll will validate all the tax-saving investment claims. If the software detects any missing information, the tax deduction will be removed automatically. Such adjustments will affect your employees’ TDS for the remaining months of this financial year and reduce their take-home salary.
Please ensure to communicate with your employees that any false claim or incorrect information can create trouble in the future.
What’s in it for employers?
RazorpayX Payroll provides you 100% visibility of the entire payroll process, including employee tax declarations.
You can login and view the ‘Tax Deduction Report’ under ‘Reports’ column at any time and from anywhere. This report will help you understand whether your employees have declared and submitted their tax-saving investments proofs.
If you haven’t tried RazorpayX Payroll for your business, sign up now and let it manage all things payroll for you.