Right Time to Collect IT Declaration From Employees FY'21

Hi Community,

Is there are right time(scheduled) to collect IT declaration from employees?
Also, is it okay to allow employees to edit in application anytime in the mid of the financial year?

Please suggest

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Hi Swati,

Yes, it is between Feb and March to collect the documents. All activity you need to complete within 31 March of every year reason being you will do the final IT calculation based on the actual documents received from the employees and need to recover the TDS from Mar salary in any.

You should restrict any editing from your side because editing in in mid of the year may lead to incorrect TDS. In fact you can inform employee that let it go and in Feb or March anyway TDS will be recalculated so there he can show any additional investement.

2 Likes

Hi @Swati

The right time to collect IT Declaration for FY’21 would be definitely before Apirl payroll.

As this gives Payroll team to compute TDS for the year and deduct taxes and definitely 03 to 06 months once allowing employees to changes their declaration might help them to alter their plans and pay/save TDS accordingly.

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