Employee Tax Exemption Proof Submission
Employee Tax Exemption Proof Submission
Employees must show verification of all the expenses for which they claim tax exemption. The Employee Tax Exemption Proof Submission document can be used to do this.
This is normally done at the end of a payroll period, however employees can send in as many proofs as they want, unlike the Employee Tax Exemption Declaration.
Make an Employee Tax Exemption Declaration prior to making an Employee Tax Exemption Proof Submission.
1. How to make an Employee Tax Exemption Proof Submission
If you press "Submit Proof" from the Employee Tax Exemption Declaration, the data is already there. If you prefer to submit a "Employee Tax Exemption Proof Submission" manually, however, here are the instructions.
Press New on the Employee Tax Exemption Proof Submission list.
Input data as required.
Also, insert the "Type of Proof" (receipts, documents, etc.).
To attach the proofs, click the Attach option at the bottom.
Type the amount of rent you will pay, the date you leased the house, and the moving-out date.
Save and send.
Proof of Employee Tax Exemption Submission
While calculating the last pay cheque's tax deductions, the Total Exemption Amount will be omitted from the employee's yearly taxable income.
Even when employees submit evidence of exemption at any time during the payroll cycle, Frappe HR will only apply this towards modifying the aggregate taxes in the final pay cheque of the Payroll Period. If you need to alter any additional taxes that were withheld or consider allowing employees to submit evidence ahead of the final payroll, click the Deduct Tax For Unsubmitted Tax Exemption Proof box when you are processing Payroll Entry (or on the Salary Slip of the employee).
Actual rent paid minus 10% of the basic salary.
In case the employee resides in a metro city, he receives 50% of his base salary. In case of residing in a non-metro city, he receives 40%.
Staff should also provide proof of HRA Exemption as part of the Employee Tax Exemption document Submission. Frappe HR will calculate the amount of the HRA exempt from tax and deduct that amount from the taxable income for the final pay cheque of the pay cheque Period.