At the beginning of the financial year, an investment declaration has to be made. Here the employer will ask you to declare the tax-savings investments for the year. It will deduct the tax accordingly from your monthly salary. It is essential as it can lead to a higher in-hand salary.

What is income tax declaration and what is proof of investments?


Income Tax (IT) Declaration:
In the beginning or during the financial year, employees are required to declare all the IT saving investments and expenses they’ve planned for that year in your Payroll application. This process is known as IT Declaration.

Proof of Investments (POI):
Towards the end of the financial year, employees are required to submit the proofs of their actual investments and expenses to corroborate their IT declaration. Employers or approvers will process these proofs and calculate tax accordingly.

Apart from helping you process your monthly payruns, Deskera People also handles your employees’ Income Tax saving investments.

Employees can declare the investments that they have made and submit proofs for the same, and Deskera People will auto - calculate the Income Tax based on the type and amount of each investment. The main incentive for employees’ to declare their investments is that it reduces their net taxable income, thereby decreasing the amount they need to pay as Income Tax.

IT Declaration under Deskera People

Follow the below steps,

  1. On the main side bar menu, under settings>>click on Investment Module
  2. After this the below IT declaration screen will appear,

As an admin you can control when the employees will be able to submit their IT Declaration so as to comply with the govt regulations by filing in the below information in the system,

  • On this page, the toggle button Lock IT Declaration will be unlocked by default.
  • You can select the date, and lock the date for employees to submit their IT declaration through the employee portal.
  • Based on the selected IT declaration date, employees can declare their IT declaration anytime as per the selected date range.
  • Consider for IT - Here you will need to select the month the IT declaration amount will be taken into consideration in that month payroll.

After these details are filled in by the admin, you can lock the IT declaration by just enabling the Lock IT declaration toggle button.

Before locking the IT declaration, a message will pop up, "Are you sure want to Lock the IT Declaration". If you are sure, click on Yes and if still now sure, click on Not now.

If clicked on yes, the status will change to IT Declaration Locked.

Incase an admin wants to change/extend the IT Declaration submission date for their employee he/she can always come and change these details at any point of time.

How can employees declare their investments using Deskera People?

Employees can declare their proposed investments and anticipated expenses through the IT declaration. This typically happens at the beginning of the financial year or when the employee joins the company.

Follow the steps below,

  1. On the main side bar menu, under settings>>click on Investment Module
  2. After this a screen will appear,
  3. On the right side of the screen under Investments, click on the My IT Declarations. From here employees can declare their investment.

4. Next, employees can declare below IT Declarations,

House Rent Details

  • Rental Period for the current financial year.
  • Monthly rent amount.
  • Address of the employee’s rented house.
  • Landlord’s PAN if employee’s annual rent amount is in excess of ₹1,00,000.
  • Whether the accommodation is located in a Metro / Non-metro region.

Click + Add House Rent to enter the details for another rented house.

Home Loan Repayment Details
If your employee is repaying a home loan for their self-occupied property, provide the following details.

  • Annual Rent Amount
  • Interest paid on Home Loan
  • Lenders Name
  • Lenders Pan

Click + Home Loan Repayment to enter the details for another Home Loan Repayment.


Rental Income Details
If your employee is a landlord, provide the following details about their let out property.

  • Annual Rent Amount
  • Municipal Taxes Paid

If your employee is repaying a house loan for this let out property, you can enter the loan details too.


The Net Annual Value, Standard Deduction and Net Income / Loss will be calculated based on the above inputs.

  • Click + Let Out Property to record details for another let out property

80C Investments
Section 80C contains a list of tax saving investments such as Life Insurance, Mutual Funds, NABARD Bonds and Unit-linked insurance plans. Select an investment and enter the invested amount to declare it. The maximum limit for investments under Section 80C is ₹1,50,000.

a). Investment  - Select the investment type from the drop-down list
b). Amount - Enter the amount against the selected investment

80D Investments
Section 80D contains Mediclaim policies for your spouse, children, parents and yourself. Select a policy and enter the invested amount to declare it. The maximum limit for investments under this section is ₹1,00,000

a). Investment  - Select the investment type from the drop-down list
b). Amount - Enter the amount against the selected investment

Other Investment and Exemptions
All miscellaneous investments will be listed under this section. Select an investment and enter the invested amount to declare it.

a). Investment  - Select the investment type from the drop-down list
b). Amount - Enter the amount against the selected investment


Other Sources of Investments

If your employee receives income from sources other than their current job, they have a legal obligation to declare it here.

5. After all the applicable IT Declarations are entered, click on Save and Submit button OR incase you need to be double sure and re confirm the details can click on Draft button and submit it later.

The declared amount will be subtracted from the employee’s net income. Income tax will be calculated on this deducted income, also known as the net taxable income.


View Tax submission report in Deskera People

Once the IT Declarations are submitted by all the employees, the employers can view the status of these submission under Investments>>Employees Tab.

Below is the screen shot for the same,

  • When investment is Save and Submit then status is updated as submitted.
  • When investment is Save as draft then status is updated as Not submitted

Please note - If employee has not declared as Save and submit or save as draft then that employee will not be displayed in Employees list (Investment).