The end of each financial year comes with its own set of headaches statutory compliances to be dealt with. Not something which any HR or Payroll manager would cherish. After all, who enjoys going through hundreds of investment proofs, LTA bills, medical bills and such sundry administrative activities. While these are necessary for minimizing employees tax incidence, its creates an inescapable burden on the compliance team.
At Emportant, we try to make this process a little easier on you. Remember to go through some of the mandatory checks you should be doing in the Jan-Mar quarter every year. Here’s a quick reference sheet:
Medical bills: Ask employees to submit any medical bills that are pending. If they have not done so, any amount paid in excess of bills submitted should be treated as taxable income. Of course, the cap of Rs 15000 will always apply to any exemption.
LTA bills: Similarly, the LTA bills as per block of 4 years should be taken to determine tax free LTA income.
Investment proofs for deductions under 80C and 80CCC: remember that PF deducted from Employees salary qualifies for deduction under this section. So does Tution fee along with several other exemptions.
Medical insurance: you should collect proof of actual insurance paid during that year. Premium paid for a 2 year renewal will not qualify for deductions in the next year.
Several other exemptions for physically handicapped, treatment of specific diseases, interest on education loan, medical treatment for handicapped dependent, etc. are available.
Proof of House Loan and/or House Rent for determining exemption for HRA / Interest on housing loan for self occupied property or let out property. The rules are specific in each case and you carry the burden of allowing the correct amount of exemption. So you can’t be careful enough.
Lastly, the applicability of 80G for donations to charities: Remember, as an employer you are not allowed to provide exemption for donations under 80G except for certain types of donations. This has to be claimed against taxable income, directly by the employee.
Emportant automates all of these calculations for you, in ways you thought are just too complicated to automate. This is why we call it The UnComplex HR Management Software!
Get your medical bill taxability, LTA, House loan and rent exemptions, Medical insurance and all other proofs to be submitted online by the employee. Scanned documents can be uploaded on Emportant itself, along with online view and approval of all such investments. Emportant even helps you send out reminders in bulk to all employees who have not submitted proofs.
When we say we make it UnComplex, we mean it!