As per the Union Budget 2020-21, a New Tax Regime has been introduced along with the existing Old Tax Regime, which is optional.
As an Assessee, you can choose between the New Tax Regime and the Old Tax Regime depending on what is best suitable to you from Tax planning point.
Income Tax will be computed based on the Tax Regime selected by you.
- If you select Old regime, you will get the exemption as per the declaration.
- If you select New Regime, except 80CCD (2) (NPS) declarations you will not get the exemption
Declare your Investment details at the start of the Financial Year, and submit the proofs at the year-end, by around Dec-Jan to preview the tax liability.
Post updating the proofs, Balance Tax payable for the Financial Year will be displayed.
Please follow the below steps to declare the Investment Amount:
Login to ESS >> On the homepage Click on the “Tax Planning” >> Click on Know Avenues to Save Tax
Once done, the below screen will be displayed:
Click the option” Click here to declare” to view/update various sections
Section 10 and Others
Chapter VI A Deductions
Interest on Home Loan and Other
Previous Employer Income
After clicking Click here to declare next to the Section 10 and other components, you will get the below screen.
Update the declaration amount under Planned/ Actual and save it.
Enter the Declaration amount under the PLANNED column at the start of the FY and the same will be considered for tax calculation till the actual Proofs are updated.
Update Actual amount and upload the supporting documents:
Enter actual bill/receipt amount under the ACTUAL column during Dec-Jan while submitting proofs.
Upload the scanned copies of the bills.
Follow the same process to update the Declaration amounts against HRA, Chapter VIA deductions, Previous Employer Income, Interest on Home Loan and others
Once the investment proofs are audited, the approved amount will reflect under “Approved” column which will be the final exemption amount as per the Income Tax rules.
If rent paid for the FY exceeds INR 1.0 Lac PA/ INR 8,333 per month, then the PAN of the Landlord is mandatory
To update the Owner’s information, follow the below steps:
- In the declaration page, click “House Rent Receipt”
- Click “Add New”
- Update the Landlord details and “Save”