Investments

The Investments module provides you with an efficient way to manage and declare your investments. You can submit your investment details online, which reduces the need for extensive paperwork. Additionally, you can easily edit your investment information and declare your IT declarations at the start of each financial year. At the end of the year, you can submit the necessary proofs. By effectively managing your investments through this module, you can potentially save on taxes and ensure compliance with tax regulations.

Investment Declarations

You can declare your proposed investments, expenses, losses, and previous employment details, if any, in the form of a provisional statement called IT Declaration. Investment Declarations help you to reduce your taxable income, so that you can maximize your take home pay. Some of the common declarations are Public Provident Fund (PPF), and Life Insurance.

Declare Your Investments

Here’s how you can declare your investments:

• Go to Investments under Payroll on the left sidebar.

• In the Investment Declaration tab, click Declare Investments.

• Fill in the following details:

  • House Rent
  • Home Loan
  • Let Out Property
  • Other Sources of Income
  • 80C Investments
  • 80D Exemptions
  • Other Investments & Exemptions
  • Previous Employment
  • Other Allowance Details

House Rent

If you’re living in a rented accommodation, change the slider next to Are you staying in a rented house? to Yes, and provide the following details:

• Rental Period for the current financial year.
• Amount/Month (monthly rent amount).
• Address of the rented house.
• Landlord Name.
• Urbanization Type (metro/non-metro).
• Landlord’s PAN if the annual rent amount is in excess of ₹1,00,000.

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

Home Loan

If you are repaying a home loan for a self-occupied house, change the slider next to Are you repaying home loan for a self-occupied house property? to Yes, and provide the following details:

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

Let Out Property

If you’re a landlord, you can change the slider next to Do you have a let out property with or without rental income? to Yes, and provide the following details:

• Annual Rent Amount
• Municipal Taxes Paid

The property’s Net Annual Value, Standard Deduction, and Net Income/Loss from House Property will be calculated based on the inputs provided in the above fields.

• If you are repaying a house loan for this let out property, check I’m repaying home loan for this property and fill in the details provided in the Home Loan section.
• Click + Add Let-out Property to record details for another property.

Other Sources of Income

If you receive income from sources other than your current job, you have a legal obligation to declare them. Fill in the following details in the Other Sources of Income section:

• Income from other sources
• Interest earned from Savings Deposit
• Interest earned from Fixed Deposit
• Interest earned from National Savings Certificates

80C Investments

Section 80C contains a list of tax saving investments such as Life Insurance, Mutual Funds, NABARD Bonds, and Unit-linked insurance plans. If you’re investing in any of these, select an investment and enter the invested amount. The maximum limit for investments under Section 80C is ₹1,50,000.

Click + Add Investment to add another investment.

80D Exemptions

Section 80D contains mediclaim policies for you, your spouse, children, and parents. If you’re investing in mediclaim policies, select a policy and enter the invested amount. The maximum limit for investments under this section is ₹1,00,000.

Click + Add Investment to add another investment.

Other Investments & Exemptions

You can declare other investments & exemptions such as Voluntary NPS, Interest Paid on Education Loan, and Medical Expenditures in this section. Select an investment and enter the invested amount to declare it.

Click + Add Investment to add another investment.

Previous Employment

If you worked in another company, you need to fill in the following details from your previous employment:

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

Other Allowance Details

You can enter your Conveyance Allowance and Child Education Allowance in this section.

• If you need to make changes to your declarations, click Save as Draft.
• Once you’ve declared your investments, click Save and Compare Regimes.
• On the page that follows, compare your tax details for the Old Regime and the New Regime. Select a regime in which your total tax liability is less and click Submit.

Edit Your Investment Declaration

If you want to make changes to your declaration, you can do so until the Investment Declaration window is open. To edit your investment declaration:

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

Switch Tax Regimes

If you want to switch tax regimes, you can do so before your payroll admin runs the first payroll for the financial year provided the Investment Declaration is unlocked. Else, you can do it at the time of filing ITR. To switch tax regimes:

• Go to Investments under Payroll on the left sidebar.
• In the Investment Declaration tab, click the More icon and select Change Tax Regime.
• On the Compare Tax Details page, evaluate the tax liability under each regime and select the desired regime.
• Click Submit.

Proof of Investments

At the end of the financial year, you need to submit proofs for all the investments you had declared in your Investment Declaration. This is known as Proof of Investments (POI).

Proof of Investment can be submitted only when the POI submission window is opened by your payroll admin. You will receive an email and a notification in the Zoho Spend employee portal once the window is open.

Things To Remember

Based on the investments declared and submitted proofs, the following outcomes are possible:

• If the value of declared investments is equal to the value of the proofs submitted, there won’t be any change in your taxable salary from the time you declared your investments.
• If the value of declared investments is greater than the value of proofs submitted, then your taxable income increases. You have to pay more taxes.
• If the value of declared investments is less than the value of proofs submitted, then your taxable income decreases. You can reclaim the additional taxes paid through IT returns.
• If you do not declare any investments and do not submit any proof, only the Government mandated standard exemptions will be deducted from your salary. The remaining income will be taxed as it is.

Submit Investment Proofs

After your payroll admin has unlocked the POI submission, here’s how you can submit your investment proofs:

• Go to Investments under Payroll on the left sidebar.
• In the Proof of Investments tab, click Submit Proofs.
• Enter the actual amount invested in each investment.
• Add new investments if needed.
• Click Compute Tax to check the total tax liability.
• Click Save and Compare Regimes.
• On the Overall Tax Summary page, attach the proofs by clicking the Attach icon.
• 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 you want to switch tax regimes, you can do so before your employer runs the first payroll for the financial year provided, the POI is unlocked. Else, you can do it at the time of filing ITR. To switch tax regimes:

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

Withdraw and Edit Proof of Investments

If you want to make changes to your proof of investments after you’ve submitted them, you need to withdraw the POI and then edit it, provided your payroll admin has not locked or approved it.

To withdraw your proof of investments:

• Go to Investments under Payroll on the left sidebar.
• In the Proof of Investments tab, click Withdraw Proof of Investments.
• Click Yes in the pop-up that appears.

To edit your proof of investments:

• Click Edit POI after you’ve withdrawn your proof of investments.
• Make the necessary changes to your proofs and click Save.
• Review all the details and check the acknowledgment.
• Click Submit.