As per the latest Union Budget 2020, a New Tax Regime has been proposed to the existing Old Tax Regime; and this New Tax Regime is optional. 

Thus, as an Assesse, 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. 

Declare your Investment details at the start of the FY, and submit corresponding proofs at the year-end, by around Dec-Jan to preview the tax liability.

Tax deducted so far and the balance Tax payable for the FY post updating the Proofs will be displayed.

 

Please follow the below steps to declare the Investment Amount:

 

Login to ESS portal >> Click the “Tax” icon on the Homepage

Once done, the below screen will be displayed:



Click “View Tax Summary & Choose/Edit Tax Option” to access another screen as Under

As per the above below screenshot, next to Section 10 and others, HRA and Chapter VIA option, you will get the option Click here to Declare.

Please click the link and you will get the option to update the Declaration amount.

 

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 Planner and Actual and save it. 

Follow the same process to update the Declaration amounts against HRA, Chapter VIA deductions, Previous Employer Income, Interest on Home Loan and others.

 

Enter the Declaration amount under the PLANNER column at the start of the FY and the same will be considered for tax calculation till the actual Proofs are updated.

 

Updating Actual amount and uploading the supporting documents:

Enter actual bill amount under the ACTUAL column during Dec-Jan while submitting proofs.

Simultaneously, upload the scanned copies of the bills into the portal.

The approved amount will be displayed for review after completion of IT proof auditing which will be the final exemption amount as per the IT rules.

 

HRA Declaration:


If rent paid for the FY exceeds INR 1.0 Lacs, then PAN of the Landlord 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




Please Note: 

Income Tax would be computed for you based on the 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 for the declarations made by you (New regime - Without Deduction)