Relevance of “declaration form” (which needs to be submitted by the E’ee to the E’er)
Every employee has to provide the information in the Declaration Form if during the Financial Year 2010–11 (i.e, from 01 Apr 2010 –31 Mar 2011) if Employee earnings are expected to exceed the Basic Exemption Limits *
Information to be provided in the Declaration form <Format Attached>
a) Expenditure incurred by the Employee (Eg: House Rent Allowance),
b) Savings (Eg: Investments Under Sec.80 C),
c) Contributions (Eg: donations under Sec.80.G)]
* Basic Exemption Limit (As per the Finance Bill Presented in the Parliament)
a. In case of Male Employee – Rs.1,60,000/-
b. In case of Female Employee – Rs.1,90,000/-
Role of the Employer
i. The Employer has to ensure that the declaration forms are been circulated to All the Employees during Apr 2010
ii. The filled copy of the Declaration form has to be submitted by the Employee before processing the Payroll for the month of Apr 2010
iii. The Employer has to define the CUTOFF Date towards the submission of the relevant supporting documents given by the Employee in the declaration Form. (Say eg: 15th FEB 2011)
iv. The employer has to ensure that all the relevant supporting as per the declaration form given by the Employee is received before 15th FEB 2011 (So that any short fall of TDS can be recovered from the balance period payroll before 31st Mar 2011)
Role of the Employee:
v. The Employee has to ensure that the declaration form is been submitted to the Employer well before processing the Apr 2010 Payroll.
vi. There is no necessity of giving the Investment Proofs at the time of giving the declaration form to the Employer
vii. The Employee has to ensure that the necessary proofs (mentioned in the declaration Form) has to submit before the date specified by the Employer (in the above case it is 15th Feb 2011)