Payroll | IT Declarations Experience Improvements

We’ve enhanced the IT Declarations experience in Keka Payroll to provide clearer visibility into declared versus approved amounts, explicit reasons for partial approvals, and better transparency into tax impact.

These improvements reduce employee confusion during declaration and proof submission cycles, especially during the proof cut-off period.

What’s Improved

1. Clear Separation: Declared vs Approved Amounts
Employees can now clearly see:

• Declared amount (planned investment/expense)
• Approved amount (validated after proof submission)
• Final TDS calculated strictly on approved values

This eliminates ambiguity around why actual deductions may differ from initial projections.

2. Explicit Reasons for Partial Approvals
If the approved amount is lower than the declared amount, the system now displays the reason, such as:

• Statutory deduction limits
• Invalid or incomplete proofs
• Regulatory restrictions

This provides contextual clarity instead of silent adjustments.

3. Dual Tax Computation Views
Employees can toggle between:

• Declared View – Tax calculated based on submitted declarations
• Approved View – Tax calculated based on verified proofs

This helps employees anticipate changes in TDS before payroll processing.

4. Improved Proof Cut-Off Communication

During the approval month (typically February), the system clearly communicates that:

• Tax calculation will switch to approved amounts
• TDS may increase if proofs are not submitted or validated

A mandatory acknowledgment pop-up is now displayed highlighting:

• The last date for proof submission
• The financial year cut-off
• The impact of non-approval on TDS

Employees must acknowledge this alert before proceeding, ensuring awareness of potential tax changes.

Business Impact

• Reduced employee confusion during IT declaration cycles
• Fewer payroll-related clarification tickets
• Increased transparency in TDS computation
• Improved compliance alignment during proof validation

This release strengthens clarity, compliance, and employee trust in payroll tax calculations.

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