How to change the cut-off date for IT declarations and proof submissions? How to restrict employees from making IT Declarations?

The government collects Income Tax through employers for various reasons, including generating revenue for the nation's development. Employers must file Income Tax returns on a yearly basis before the due date to avoid penalties. Employees falling under Income Tax payment slabs can declare their expenditures under specific tax-exemption sections, which can affect the final net tax amount deducted from their salary. Employers set a cut-off date for all employees to fix the tax amount and make payments accordingly.

Assigning a due date for IT declaration can be tricky especially since you are possibly dealing with a number of employees. Requests for extension of the deadlines are quite common. 

In such cases, there are 2 things that are important

• Changing the cutoff date for IT declarations and proof submissions
• Restricting employees from making IT declarations

Let's see how this can be done in Keka. 

Changing the cutoff date for IT declarations and proof submissions

To Change the cut-off date for IT declarations and proof submissions, go to Payroll (1)  >> Settings (2).

In the Pay Groups (3) tab, if you have multiple pay groups configured, select the right paygroup and click on the Configure (4) icon.

In the Pay Group window, go to the Taxes and Deductions (1) tab, choose the Income Tax (2) tab and click on the three dots and select Update IT Declaration Due Date (3).

In the IT Declarations Due Date section, change the Cutoff date for declaration changes in the financial year for existing and new employees.

You can also change other options on this screen such as allowing employees to submit IT declarations after the cutoff date in the financial year and needing approvals for IT declarations made before and after the cutoff date. 

You can also select the cutoff date for submitting proof of IT declaration by selecting the checkbox Employees are required to submit proof of IT declaration.

Typically, it is recommended to give a peroid of 1 month between the due date for IT declaration and proof submission

Once done making the necessary changes, click Save to finish the setup. 

Restricting employees from making IT declarations

One of the simplest ways to restrict employees from making IT declarations is to set the cutoff date as a past date. You should also unselect the option which allows the employees to submit IT declarations after the cutoff date. 

Once done, click Save.

This will restrict employees from making IT declarations after the cutoff date and will not allow employees to share proof of IT declaration too.

If an employer changes the cut-off date for a tax declaration, the employee may face a high tax rate. On the other hand, if an employee submits the necessary documents and the employer approves them, any subsequent changes made by the employee will not be applicable until the declarations are approved, provided the cut-off date has already passed.

Hope this was helpful! If you have more questions, let our team know and we will be happy to help you!