Employee details for tds - the complete process with screenshots

In this post, we will see the process to enter Investment Details of the employee for the particular Financial Year.

These details are important for tax computation and Monthly TDS calculation.

So, the details can be entered only for the employees for whom TDS computation is enabled in Employee Master.

Also, from the salary for the employee Rupee 1 is deducted if the valid PAN information of the employee is not provided.

Firstly, go to More Employee Details under TDS Details menu.

More Employee Details has various options to enter.

Then start entering the investment/savings details against the particular employee in this window.

Under the tab Metro Y/N, check the box when the Employee is residing in Metro city else keep it unchecked.

Based on the selection, the HRA computation for the employee will vary (you can do HRA calculation automatically based on various parameters entered)

Under the Rent Paid Details tab, the type of HRA details of the employee is entered. If the HRA details are given on Yearly mode, enable the Yearly checkbox. Then enter the whole year HRA amount. This amount will be divided automatically to monthly value.

Next, select the option Children (Studying) to enter the number of children going to school in a particular month.

On entering the first month, then all other months will get auto-updated.

Note: This exemption is effective only in the case of Children Education Allowance is part of the salary. This exemption is applicable for Maximum 2 Children studying from Nursery to Graduation (Full Time Course). The exemption amount is Rs. 100 per child per month.

Similarly, if children are studying in a hostel, select the option Children (Hostel) to enter the number of children staying in a hostel (academic purpose) in a month.

The remaining option then works similar to Children (Studying).

Note: This exemption is effective only if the Children Hostel Allowance is part of the salary. This exemption is applicable for Maximum 2 Children studying from Nursery to Graduation (Full Time course) and staying in the hostel for the same. The exemption amount is Rs. 300 per child per month.

Next, in case of employee declaring capital gain from asset sale of house property details, select the option CG-HP ITR 2.

This tab shows if the employee has borrowed loan for Self Occupied House (SOP), then the details of Principle and Interest amount paid towards the loan.

If the employee has declared the loan details of Let Out Property (LOP), then select the checkbox LOP.

In case of LOP, enter the Gross Annual Value, Municipal Tax Paid and Let out interest as details as declared by the employee.

Note: Principal Amount on LOP Loan will be merged and declared along with SOP loan principal amount.

The option under HRA Monthly/Yearly is to consider the HRA amount is Monthly or Yearly wise during the computation of TDS.

If you enable the checkbox against the employee, the HRA computation will be also by default monthly else it will be yearly.

Next, we will see on Benefit Inst. Free Loans.

When the employer has given some Interest-free loan to the employee and the benefits received is taxable in the hands of the employee. Then you can use these details.

For enabling this, we need to enable Loan under Options Setting features of Initial setting Menu.

So, after enabling this option, go to Loan under the Pre-salary Transaction menu. Enter the Loan details with separate principle or interest accounting.

While creating the loan account, we get an option Consider Interest Free Benefit loan, enable the option.

Next, go to Automated Int. Free Loan Calc. under TDS Details menu. Update the Benchmark interest rate for the required loan and save.

On selecting the required FY and loan, the applicable employees will be listed. Click on Update to update the benefit rate for the particular employee.

In the update screen, select the employees for whom the details have to be ported to TDS computation. The Benefit Amount is then auto computed and displayed.

By clicking Port, the detail will be then ported for TDS computation of the employee.

You can view the details ported under Benefit Int. Free Loans tab.

Note: If you do the calculation of Benefit amount manually, the same can be entered in the other column of the tab.

To enter the Saving and Investments detail of the employee, click on VI-A Ded.

Here, select the applicable Section, Saving/Investments type, Assured Amount and Proof amount (if any) and Save. The sections that can be entered here are 80C, 80CCG, 80D, 80G, 80GGA, 80GGC.

Note: For any other sections, enter the details in the Computation window.

The 80C and 80D details can be the same for the previous year and the current year. then you can transfer it to the current year by clicking on Transfer (80C) VI A Ded.

So, if the employee has invested in National Saving Certificate (NSC) and has declared the same, click on NSC Det.

Here, enter the NSC details and save.

For employees who have declared HRA above Rs. 100000 and those who have declared Home Loan Interest, PAN of the Landlord/ Lender has to be entered. You can enter it by clicking on PAN Details.