Investment Declarations & Proof Validations
Investment declarations and proof validations are critical components of payroll management, particularly for salaried employees looking to optimize their tax liabilities. SGCMS, as your payroll partner, enables employees to declare their investments and claim tax deductions under various sections of the Income Tax Act.
Investment Declarations
Various types of expenditures are eligible for deductions under different sections of the Income Tax Act, such as:
- Section 80C : Investments in Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), Life Insurance premiums, etc.
- Section 80D : Health insurance premiums.
- Section 24 : Interest on home loans.
- Section 80G : Donations to eligible charities.
Proof Updation
It streamlines the management of employee and compliance-related documents by enabling users to upload, categorize, and update proofs seamlessly. It supports various file formats and bulk uploads, ensuring efficiency. With real-time status tracking, automated validations, and manual verification options, accuracy and authenticity are prioritized. Role-based access, encryption, and audit trails enhance data security and compliance. Integrated with Employee Self-Service (ESS) and HRMS systems, it empowers employees to manage their documents while providing alerts for expiring proofs and pending tasks. This feature improves efficiency, reduces administrative workload, and ensures compliance with organizational and statutory requirements.
Proof Validation Process
The proof validation process involves employees submitting documentation that verifies their declared investments. This typically occurs at the end of the financial year. SGCMS with the help of their user-friendly software, PionHR enables employers to review these documents to ensure that the deductions claimed are legitimate and comply with tax regulations. We guide our partners to provide adequate proof so that the right deductions are made later in the year.
Contact us today to explore how SGCMS can transform your employees’ experience. Your success is our commitment.
