Declaring Income Tax Returns

It is the legal obligation of every person with the total income exceeding the non-taxable income range, as per Government directives, to furnish income tax returns.

At the beginning of the financial year, you can declare your taxes, stating your investment portfolio.

You should declare this information to the government using prescribed forms. You should also duly sign and affirm that your declarations about your previous year earnings are true and complete. This process is termed as Declaration of Income Tax Returns.

As a user, you should be able to view changes in your income tax liability and deductions by taking into consideration the changes in IT declaration. You can submit the same for payroll processing or replan for the month and resubmit.

You can enter details pertaining to income tax declaration in the Income Tax Declaration page of PeopleWorks.

To declare income tax return:

In the home page, do any of the following:

In the My Self grid box, click My Compensation and on the left pane of Salary page, click Income Tax Declaration.
On the My Self menu, under My Compensation, click Income tax declaration.

The Income tax declaration page appears.

In the Employee Search text box, the employee name and id will be displayed.

The details displayed are:

Income tax declaration details

Field	Description
Employee name	Displays your name.
Employee ID	Displays your employee ID.
Financial year	Displays the financial year for which you are declaring the returns.

The details will be displayed in the grid.

This grid will display the current tax liability as well as the revised tax liability post of IT declaration changes.

‘Current Tax Liability’ shows Income Tax Liability of Previous Payroll.
‘Revised Tax Liability’ shows Income Tax Liability based on Income Tax Declaration done on Current Month (Increase / Decrease in Tax will be shown in Revised Tax Liability once Employee click on “Save” after making Changes in Income Tax Declaration Section e.g. Rent).
Click icon to view the income tax details.

The Income Tax Details window appears with the following details.

Click Close to close the window.

To download draft for future reference click icon.

Downloaded PDF should contain the date and time when the latest calculations were saved. It should auto update in IT declaration.

‘Last Saved Date’ shows the last updation done in Income Tax Declaration Section.

Once an employee has planned his IT declaration and saved it, the same should flow to IT Calculator below. Employees can view their tax liability based on which he can make changes to IT declaration or save it which will be considered for payroll processing.

‘Current Tax Liability’ columns should fetch the data as per the CTC of the employee for the first month of the financial year.
Total tax, balance tax and expected tax deduction for the month will vary under ‘Revised Tax Liability’ column.

Expected tax deduction for the month should depend on balance tax.
Balance tax should depend on Total tax and tax deducted.
Tax deducted is the YTD tax deduction.
Total tax should vary depending on the changes made by the user in FBP and IT declaration.

Note 1: In Revised Tax Liability column Total Tax, tax deducted and Balance Tax should be the same as current tax liability till changes are made by the user in IT declaration.

Note 2: Expected tax deduction for the month should be Balance Tax/balance no of months as balance tax is the projections till March.

Note 3: The difference between the current tax liability and the revised tax liability in the expected tax deduction for the month fields is: (Expected tax deduction for the month under current tax liability - Expected tax deduction for the month under revised tax liability).

To enter details of house rent paid by you during the year, click the House Rent tab.

In the Rent Paid text box corresponding to each month of the year, enter the amount you paid as rent and then click Save.

The house rent details are saved successfully.

To enter details of investments that are covered under U/s 80c section of the Income tax Act, click the U/S 80c tab.

The U/s 80c declaration details appear:

U/s 80 c declaration details

Field	Description
Particulars	Displays the particular investment that you want to include under U/s 80c
Maximum Amount (Rs)	Displays the maximum amount that you can include under this particular investment
Amount (Rs)	Displays the amount you are investing

To enter details for any item on the list of particulars, enter the amount in the corresponding Amount text box and then click Save.

Note 1: The amount entered cannot be more than the corresponding Maximum Amount specified.

Note 2: U/s 80c section of the Income Tax Act is the section that deals with tax breaks.
You can include qualifying investments, up to a maximum of Rs. 1 Lakh, to be exempted from tax.
This helps you to save on the taxes you pay.

To enter details of deductions under Chapter VI A, click the Chapter VI A tab.

The Chapter VI A declaration details appear:

Chapter VI A declaration details

Field	Description
Particulars	Displays the particular investment that you want to include under Chapter VI A
Maximum Amount (Rs)	Displays the maximum amount that you can include under this particular investment
Amount (Rs)	Displays the amount you are investing

To enter details for any item on the list of particulars, enter the amount in the corresponding Amount text box and then click Save.

Note 1: The amount entered cannot be more than the corresponding Maximum Amount specified.

Note 2: Chapter VI A is a provision under Income Tax Act that allows you to save on income tax by investing in various particulars.

To enter details of income return from house property, click the Income from house property tab.

The Income from House Property declaration details appear:

In the Particulars column click on Click here to enter your details link.

The Calculator for Income/Loss on House Property screen appears.

Click on Property is self occupied check box, if the property is self occupied or else click on Property is let out check box.

Note 1: If the Property is self occupied check box is clicked, update the details in the top grid.
Note 2: If Property is let out check box is clicked, update the details in the second grid i.e. gross annual value – rent received, multiple taxes paid details, interest borrowed capital in the previous year, 1/5th of the interest paid during construction, prior to occupancy. Click OK to save the details or else click Cancel to exit the dialog box without saving.
Note 3: After clicking OK you will go back to the Income Tax Declaration page. Click Save to save the necessary changes done.

To enter details of income that are exempt under section U/S 10, click the Exempt U/S 10 tab, enter the details.