What are Investment Settings? What do they mean?

Investment settings often come with several configurable options that allow employers to manage how employees handle their investment declarations. You can navigate through Dashboard >> Payroll >> Payroll Settings >> Investment Settings >> Edit >> Save. Here’s a detailed explanation of each question included in these settings:

1. What level of access do your employees have on their Investment Declarations?

This setting determines the extent to which employees can view, edit, and submit their investment declarations. Employers can set access levels to:

• View Only: Employees can only see their investment declarations but cannot make changes.
• Edit and Submit: Employees can make changes to their investment declarations and submit them for approval.
• No Access: Employees do not have access to their investment declarations.

2. For new joiners, do you want to set a days limit up to how many days the Investment declaration page edit option should be available?

This setting specifies a time limit for new employees to edit their investment declarations after joining the company. For example, employers might allow new joiners to edit their declarations within the first 30 or 60 days of employment.

3. From what month onwards will employees submit their actual investment proof?

This setting defines the starting month from which employees are required to submit proof of their investments. Commonly, companies might require investment proof submissions to begin in the last quarter of the financial year, such as January.

4. Do you want to lock the investment declaration option while running payroll?

This setting determines whether employees will be able to edit their investment declarations while the payroll process is ongoing. Locking the declaration option ensures that no changes are made during critical payroll processing times to avoid discrepancies.

5. Would you like to collect employees' Investment proof in soft copies through Employee's Self-Service portal?

This setting allows employees to upload their investment proofs electronically via the self-service portal, making the submission process more streamlined and efficient.

6. Do you want to send a mailer to employees to submit investment proof?

This setting enables automated email reminders to be sent to employees, prompting them to submit their investment proofs by a specified deadline.

7. Do you want to enable the 80G Donation option under Investment Declaration?

Section 80G of the Income Tax Act allows tax deductions for donations made to charitable organizations. This setting allows employees to declare their 80G donations within their investment declarations.

8. Do employees receive an email notification when Admin approves the proof?

This setting enables notifications to be sent to employees once their submitted investment proofs have been reviewed and approved by the admin, keeping them informed about the status of their declarations.

9. Would you like to activate promissory declarations for employees?

Promissory declarations allow employees to declare their intention to invest in certain instruments within the financial year even if they have not done so yet. This setting can help employees plan their taxes better while providing a commitment to the employer.

10. Is House Rental Agreement Mandatory?

This setting determines whether submitting a house rental agreement is mandatory for employees who are declaring House Rent Allowance (HRA) for tax exemption purposes.

11. Do you want to activate auto-approval for tax declarations?

This setting allows for automatic approval of employee tax declarations without manual intervention from the admin. This can expedite the process but might require thorough validation rules to ensure accuracy.

12. Do you want to activate manage employee tax regime?

This setting allows the option for employees to select and manage their tax regime (e.g., new or old tax regime) through the self-service portal, giving them flexibility in their tax planning and declarations.

These settings help streamline the investment declaration process, ensuring that employees can manage their tax declarations efficiently while maintaining compliance with company policies and tax regulations. By configuring these options appropriately, employers can enhance the overall experience and accuracy of investment declarations within the organization.