Tax declarations & employee loans

Tax declarations let each employee pick their tax regime for the year and, under the old regime, declare planned investments (§80C, §80D, HRA, home-loan interest and so on) and upload proofs. HR verifies the proofs and the verified amounts true up the employee's TDS. Under the new regime (§115BAC) there's nothing to declare — only the standard deduction and employer NPS apply.

Employee loans & advances are interest-free in this version. The EMI is added automatically as a payroll deduction, so repayment comes out of salary each month, and any outstanding balance is recovered in the employee's full-and-final settlement when they leave.

• Employees set their own regime, declaration and proofs, and can request a loan or advance for themselves.
• HR admins / accountants (a company_admin, hr_manager or accountant) verify declarations in the queue and approve, disburse, prepay or write off loans.
• Plan & 2FA: the Payroll module must be enabled — see pricing. Disbursing or writing off a loan uses step-up two-factor (TOTP), so set up 2FA first.

For declarations, employees should know which regime suits them — the old regime only helps if their deductions beat the new regime's lower slabs. Note that once a payroll run has been processed for the year, the regime locks and HR has to re-open it to change. For loans, decide the principal and (for a loan rather than a one-off advance) the tenure in months.

1. Open My tax declaration, pick the financial year, then choose new or old regime.
2. Under the old regime, fill the declaration heads (§80C, §80D, HRA with rent/landlord details, home-loan interest, etc.), then Submit declaration.
3. Upload proofs (PDF / JPG / PNG) against each head, then Submit all proofs for review.
4. HR reviews them in the verification queue, sets the verified amount per item, and finalises. The verified amounts then drive your TDS true-up.

1. Open Loans and click New. Pick Loan (EMIs) or Advance (recovered in the next payroll), enter the principal, and for a loan set the tenure. A live EMI schedule preview shows the monthly amounts.
2. Submit the request. An interest-free loan over ₹20,000shows a §17(2) perquisite note — that's informational only; the platform doesn't value the perquisite.
3. HR / finance approves the request, then disburses it (step-up TOTP). Disbursing generates the EMI schedule and posts the loan to the books.
4. Each EMI then auto-deducts in payroll. HR can record a prepayment (which re-amortises and shortens the tenure) or write off the balance (step-up TOTP). Any remaining outstanding is recovered in full-and-final when the employee exits.

• The EMI preview comes from the same engine that builds the real schedule on disbursement, so what an employee sees is what they get.
• Under the new regime the declaration form is hidden by design — investment declarations don't change new-regime TDS.
• Verified declaration amounts (not the declared amounts) are what actually move the employee's TDS, so the HR proof check matters.

• Run your first payroll — where the TDS and EMI deductions land.
• Add or onboard an employee — set up the people these inputs belong to.
• Payroll software for India — what the module covers.