Investments

The Investments module in Zoho ERP enables you to declare investments and submit proofs digitally, eliminating paperwork and simplifying tax compliance. You can declare your investments at the beginning of the financial year and submit the required proofs at the end of the year. These declarations help your payroll team calculate income tax accurately and maximize your take-home pay based on eligible exemptions and deductions.

Investment Declarations

Investment Declarations allow you to declare your proposed investments, expenses, losses, and previous employment details, if any, in the form of a provisional IT declaration. These declarations are used to estimate your taxable income and calculate TDS during payroll processing. Common declarations include Public Provident Fund (PPF), Life Insurance, and other tax-saving investments.

Declare Your Investments

To declare your investments:

• Go to Payroll on the left sidebar and select Investments.
• In the Investment Declaration tab, click Declare Investments.
• Enter the required details in the following sections:
  • House Rent
  • Home Loan
  • Let Out Property
  • Other Sources of Income
  • 80C Investments
  • 80D Exemptions
  • Other Investments and Exemptions
  • Previous Employment
  • Other Allowance Details

House Rent

If you live in a rented house, enable Are you staying in a rented house? and provide the following details:

• Rental Period for the current financial year
• Monthly Rent Amount
• Rented House Address
• Landlord Name
• Urbanization Type (Metro / Non-metro)
• Landlord’s PAN (mandatory if annual rent exceeds ₹1,00,000)

Home Loan

If you are repaying a home loan for a self-occupied property, enable Are you repaying home loan for a self-occupied house property? and enter:

• Principal Paid on Home Loan
• Interest Paid on Home Loan
• Name of the Lender
• Lender PAN

Let Out Property

If you own a property that is let out (with or without rental income), enable Do you have a let out property? and provide:

• Annual Rent Amount
• Municipal Taxes Paid

Based on these details, the system calculates the Net Annual Value, Standard Deduction, and Net Income or Loss from House Property.

If a home loan applies to this property:

• Select I’m repaying home loan for this property and enter the loan details.
• Click + Add Let Out Property to declare additional properties.

Other Sources of Income

If you earn income outside your current employment, declare the following details:

• Income from Other Sources
• Interest from Savings Deposits
• Interest from Fixed Deposits
• Interest from National Savings Certificates

80C Investments

Section 80C includes tax-saving investments such as Life Insurance, Mutual Funds, NABARD Bonds, and Unit-Linked Insurance Plans (ULIPs). Select the applicable investments and enter the invested amount. The maximum deduction allowed under Section 80C is ₹1,50,000.

Click + Add Investment to add more investment.

80D Exemptions

Section 80D covers medical insurance premiums for yourself and your dependents (spouse, children, and parents). Select the applicable policies and enter the amount invested. The maximum deduction allowed under this section is ₹1,00,000.

Click + Add Investment to add more investment.

Other Investments and Exemptions

Declare other eligible investments and exemptions such as Voluntary NPS, Interest on Education Loan, or Medical Expenditure by selecting the investment type and entering the amount.

Click + Add Investment to add more investment.

Previous Employment

If you were employed elsewhere during the same financial year, enter the following details from your previous employer:

• Income After Exemptions
• Income Tax Paid
• Professional Tax
• Employee Provident Fund
• Leave Encashment Exemptions

Other Allowance Details

Declare allowances such as Conveyance Allowance and Child Education Allowance in this section.

• Click Save as Draft to modify your declaration later.
• Click Save and Compare Regimes to compare tax liability under the Old and New tax regimes.
• Select the preferred tax regime and click Submit.

Edit Your Investment Declaration

You can edit your investment declaration while the declaration window remains open.

To edit your declaration:

• Go to Payroll on the left sidebar and select Investments.
• In the Investment Declaration tab, click Edit Declaration.
• Make the necessary changes and click Save and Submit.

Switch Tax Regimes

You can change your tax regime before the first payroll run of the financial year, provided the Investment Declaration is unlocked. Otherwise, you can switch regimes while filing your income tax return.

To switch tax regimes:

• Go to Payroll on the left sidebar and select Investments.
• In the Investment Declaration tab, click the More icon and select Change Tax Regime.
• Compare tax liability under both regimes and select the preferred one.
• Click Submit.

Proof of Investments

At the end of the financial year, you must submit proofs for the investments declared earlier. This process is referred to as Proof of Investments (POI).

You can submit POI only when the payroll administrator opens the submission window. You will be notified through email and the Zoho ERP employee portal.

Things To Remember

• If declared amounts and submitted proofs match, there is no change in taxable income.
• If declared amounts exceed the value of proofs, taxable income increases and additional tax is deducted.
• If the value of proofs exceed the declared amounts, excess tax paid can be claimed while filing income tax returns.
• If no investments are declared or proofs submitted, only standard exemptions are applied.

Submit Investment Proofs

To submit your investment proofs:

• Go to Payroll on the left sidebar and select Investments.
• In the Proof of Investments tab, click Submit Proofs.
• Enter the actual invested amounts and add new investments if required.
• Click Compute Tax to check the total tax liability.
• Click Save and Compare Regimes.
• On the Overall Tax Summary page, attach proof document and add comments if needed.
• Review all the details and check the acknowledgment. Click Edit Proof of Investment if you want to make changes to your investment proofs.
• Click Submit.

Switch Tax Regimes

If POI is unlocked and payroll is not yet processed, you can switch tax regimes during proof submission. Here’s how:

• Go to Payroll on the left sidebar and select Investments.
• In the Investment Declaration tab, click the More icon and select Change Tax Regime.
• Compare tax details, select a regime, and click Save.
• Review all the details on the Overall Tax Summary page and check the acknowledgment.
• Click Submit.

Withdraw Proof of Investments

If your payroll administrator has not locked or approved your POI, you can withdraw and edit it.

To withdraw your proof of investments:

• Go to Payroll on the left sidebar and select Investments.
• In the Proof of Investments tab, click Withdraw Proof of Investments.
• Click Yes in the popup that appears.

Edit Proof of Investments

To edit your proof of investments:

• Click Edit POI.
• Make the necessary changes and click Save.
• Review the details and click Submit.