How Do Companies Collect Tax Declaration Details - XLS Download

Hello,

As far as I know (AFAIK), estimated income, investment details, etc., are collected from employees at the start of the financial year. Can anyone tell me how companies collect these details? Is there a signed declaration form that needs to be collected?

I have the same question regarding the final declarations that are submitted with proof towards the end of the year.

You can formulate the format, and signed declarations shall be taken from the employees.

Pon, Chennai

Thanks.

1) Is the signed declaration taken at the start of the year as well (as it may be an estimate only)?
2) What if a company does not have any signed declaration document from employees even until the close of the financial year?

I hope the corrections provided above are helpful. Let me know if you need further assistance.

Avantika,

Reputed companies have implemented the self-service system in their intranet, and the employees fill out the relevant proposals online. Some companies do not collect hard copies, but some do. However, if a particular employee fails to produce the necessary proofs by the specified deadline, for example, by the end of January, the entire tax liabilities are deducted from their last three months' salary proportionately. It should be noted that the TDS deduction is the responsibility of the employer, as well as the collection of investment proofs.

Pon, Chennai

Hello,

In our company, we do take the declaration from employees at the start of the financial year. Based on that, we do initial calculations and start deducting income tax from the beginning of April or May salary.

In January every year, we collect the actual proofs from employees against their declaration. If they fail to produce the required documents, then we add that amount to their income and collect extra tax over the remaining three months.

I have also attached the format for your reference. Please let me know if you need any further details.

Thank you, Sunil and Pon.

Can you also tell me if the declarations need to be "signed" both at the start of the year and in January as well? Some employees may not have all the proofs by January.

Yes, it has to be signed by the respective employee while submitting the same. In case of any changes, we do take the new/revised declaration in the month of January. We have made files for employees, and we add their income tax proofs in them.