As an Employee, you can choose between the New Tax Regime and the Old Tax Regime depending on what is most suitable to you from a Tax planning point.
Declare your investment details at the start of the Financial Year and submit the proof at the year-end.
Post declaration, the balance Tax payable for the Financial Year will be displayed.
For details on the new tax rules as per the Union Budget 2023-24, check the document (Income Tax Changes for 2023-24).
Please follow the below steps to declare the Investment Amount:
Login to ESS using your credentials.
Click “Tax Planning”.
Click “View Tax Summary & Choose/Edit Tax Option”.
Here you will be able to see the tax calculation for both the Old and the New Tax Regime as per the latest Income Tax Rules. This interactive Tax Calculator will provide details of what are the investments that are applicable under both Regimes.
For easy access, we have divided the Declaration into 5 different options.
Section 10 & Others
Chapter VI A Deductions
Interest on Home Loan & Other
Previous Employer Income
To update these sections, you need to click “Click here to Declare”.
Section 10 and Others
All components under Section 10 will be displayed except HRA.
Please enter the amount in the “Planned” column.
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:
Click “Add New.”
Update the Landlord details.
Enter the rent declared amount in the “Planned” column.
Update the Rent amount say April or the month you are availing the HRA and for the balance months, the rent will be auto-filled with the same amount till March.
If there is any change in the rent amount, you can edit only from that month onwards. For E.g. If rent from January needs to be edited, enter the new rent and automatically the rent amount will be updated from January to March.
Chapter VIA/80C-80U Deductions
We have also included Maximum Eligibility allowed under the respective Section. E.g., For all Line items under Section 80C, the maximum declaration allowed is INR 1.50 lacs either individually or collectively.
Update the Amount against the applicable investment Head under the “Planned” column.
Other Income and Losses
Please update any income other than salary under “Income from Other Sources”.
Calculate the Income / Loss from House Property as per the Income Tax Guidelines and update the final value under “Income / Loss from House Property (Let Out).
If the calculated value is Income, then Update the Positive amount, and if it is a Loss update the Negative amount.
If you have Home Loan for Self-Occupied Property, update the total Interest paid / payable under Interest on Home Loan (Self Occupied). As per the Income Tax Rules, you will be eligible for benefits up to 2 lacs.
Enter the values in the “Planned” column.
Previous Employment Details
If you have joined a company in between the financial year, it is important to declare the previous employer’s Income with the current Employer so that your taxes for the entire financial year are calculated appropriately.
Enter the details in the “Planned” column.
Tax Regime Selection
Once you have updated all 5 options, the Tax Calculator provides the tax calculation under both the Old and New Regimes.
Carefully compare Total Tax Liability and select the appropriate Check Box to choose which Tax Regime you would like to select.
As per the Income Tax Rules, once you have opted for the Tax Regime, you will not be allowed to change the same within the Financial Year.
Click “Save” to complete the Investment Declaration.
With this, you have successfully submitted the Investment Declaration for the Financial Year.