Employees must provide evidence for all the expenditures for which they are claiming tax exemptions. This process is facilitated through the Employee Tax Exemption Proof Submission document.

Typically, this submission occurs at the conclusion of a Payroll Period. However, unlike the Employee Tax Exemption Declaration, employees can submit proofs for any number of expenses.

> Note: Create an Employee Tax Exemption Declaration before creating an Employee Tax Exemption Proof Submission

To access Employee Tax Exemption Proof Submission, go to:

> Home > Human resources > Employee Tax Exemption Proof Submission

1. How to create an Employee Tax Exemption Proof Submission

The details are already fetched if you click on ‘Submit Proof’ from Employee Tax Exemption Declaration. However, if you want to create an ‘Employee Tax Exemption Proof Submission’ manually, follow these steps.

1. Go to the Employee Tax Exemption Proof Submission list, click on New.
2. Enter the details as needed.
3. Additionally, enter the ‘Type of Proof’ (documents, receipts, etc.).
4. Attach the proofs in by clicking on the Attach button at the bottom.
5. Enter House Rent Payment Amount, Rented From Date and Rented To Date.
6. Save and Submit.

The Total Exemption Amount will be deducted from the employee’s annual taxable income during the calculation of tax deductions in the final payroll.

Note: Even if employees submit exemption proofs at any point during the payroll period, BizCentric HR will only take this into account during the last payroll of the Payroll Period to adjust the final taxes based on the submitted proofs. If you need to adjust any additional tax collected or consider proof submission of employees at any time before the final payroll, you can check the Deduct Tax For Unsubmitted Tax Exemption Proof option while processing the Payroll Entry (or in the Salary Slip of the employee).

Regional – India

For the current fiscal year, in India, House Rent Allowance (HRA) exemption from taxable earnings is the minimum of:

• The actual amount allotted by the employer as the HRA.
• Actual rent paid less 10% of the basic salary.
• 50% of the basic salary, if the employee is staying in a metro city (40% for a non-metro city).

As part of the Employee Tax Exemption Proof Submission, employees shall also submit proof for HRA Exemption. BizCentric HR will calculate the exemption eligible for HRA and exempt it while calculating the taxable earnings in the last payroll of the Payroll Period.

> Note: HRA component shall be configured in Company for HRA exemption to work