Every component created must be mapped employee-wise. This mapping will be as per your company rewards policy. You have the option to map a particular component to an individual employee a set of employees or all employees.
Under Section 10 of the Income Tax Act, some of the income/allowances are exempted from taxation. To avail of the exemption against those components, the employee should enter the amount in the planned column under Section 10 during the investment declaration.
To enable Section 10 Exemption, there is an option provided to map the earning components to Exemptions.
All components were displayed under Section 10 during the Investment Declaration wherein the employee the employee could view all the components even if it was not allocated and paid. Employees were under the impression that they would be receiving the exemption as they had declared those components. This led to a lot of queries on the exemption received.
We are glad to inform you that now the Investment Declaration under Section 10 is more concise and easier to understand, as it will only show the components that have been allocated to the employee.
This will bring about more clarity reduce the number of queries and bring about an enhanced employee user experience.