Income Tax Declaration is a document given by an employee to the employer which contains the employee’s gross income, expenses, and proof of tax-saving investments into instruments such as insurance, PF, annuity plans, etc. Taxation in India starts in IT declaration and ends with ITR filing.
The Income Tax declaration is generally submitted at the beginning of the financial year. IT declaration helps an employer to calculate the taxable income of an employee and the amount of tax to be deducted from the salary. An employee also needs to submit Form 12BB to the employer.
Once the TDS is deducted, the employer has to remit the same to the Income Tax department or Central Government via challan or online payment. The details are to be submitted to the Income Tax department every quarter.