About TDS Verification
Verify TDS payments and check for TDS proofs from employees in RazorpayX Payroll.
TDS verification process happens usually in January. There are 2 parts to this:
- Your employees' tax deductions declaration (which can be updated at any time of the year).
- Your employee's associated investment proofs (usually updated around January).
This is applicable if Require admin approval for deductions updates under Settings → Tax Deductions Setup is enabled.
If any of your employees change their declaration, you can see a reminder on your Dashboard as the admin that says Please confirm these changes to your employee data. Click the link, and it then shows you a list of changes that you can approve or reject.
After your employees upload their tax declarations, you can see that report in Reports → Tax Deductions.
Here, under Proof Verification Status, check for employees where the status is pending. You can click on the status for those employees, and check their tax deductions declaration.
On this page, you can also see link(s) that say Manage Proofs wherever the employee has uploaded a proof. Click these links and check for proofs where the status is pending. For those links, you can view the proof documents and approve/reject the proof accordingly.
While XPayroll verifies all IT declarations in January, some organisations might prefer to do this later.
We do not recommend this, since a change (usually a reduction) in an employee's declaration leads to an increase in their TDS, and we would ideally like to spread this over a few months of payroll.
If you still want to request a delay in your verifications, then:
- Log into your .
- Go to Settings → Tax Deductions Setup.
- Disable XPayroll Verification of Tax Deductions.
This ensures that we exclude you from the regular cycle of verifications.
When you're ready for verifications, switch this option back on and email support at:
. Note that we do this on a best efforts basis, and we do not guarantee it.XPayroll automatically verifies proof of the tax deductions (or IT declaration) for all employees and those who have the setting enabled under Settings → Tax Deductions Setup → Let XPayroll verify tax deductions.
For such customers, XPayroll starts sending out email reminders to all employees who have claimed tax deductions in the month of December. The email contains a summary of their declaration, and a last date by which the employee must upload proofs.
Handy Tips
While XPayroll does provide the functionality for employees to upload Form 12BB, this is not required by us and is only provided in case you want it for your own records.
Once the last date passes, the XPayroll team begins approving/rejecting the proofs uploaded. Once all the employees data is processed, XPayroll automatically changes the following settings under Settings → Tax Deductions Setup.
- This setting changes to calculate tax on the basis of approved proofs only.
- This setting changes to require admin approval for any further updates.
Once both these settings are changed, it is up to the organisation's administrators to approve any further changes in your employees' tax deductions. XPayroll does not process any further updates to proofs either.
As an employer, please encourage your employees to upload these proofs as soon as possible. Once the setting to calculate tax on the basis of proofs is enabled, most employees who have not uploaded proofs will see an increase in their TDS and this should not come as a surprise to them. Once TDS is deducted and paid, it is not possible to refund it to the employee at a later date either.
To verify compliance deductions before executing payroll:
- Go to Reports → Salary Register.
- Change the payroll month to the required month.
In the salary register, you can view each employee's earnings as well as all compliance related deductions.
Watch Out!
Do not to add any PF, PT, ESI, TDS related deductions as a deduction on the Run Payroll page.
TDS is paid by XPayroll by the 7th of every following month. For example:
- For your September payroll, XPayroll pays TDS by 7th October.
- If you make a contractor payment where the invoice date is 10th January, then the TDS is paid by 7th February. If there is no invoice date, then the date of payment itself is used to calculate the TDS payment date.
The only exception to this is for payroll and payments done in the month of March. Instead of TDS being paid by 7th April, it is paid by 30th April. This is in compliance with the current tax regulations and also allows our customers to close financial accounts for the year.
After the payment is made, you can find the TDS challans under Reports → TDS.
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