XPayroll will automatically verify proof of tax deductions (or IT declaration) for all employees of customers who have the setting enabled under Settings > Tax Deductions Setup > Let XPayroll verify tax deductions.

XPayroll will start sending out email reminders to all employees who have claimed tax deductions in the month of December. The email contains a summary of their declaration, along with a last date by which the employee must upload proofs. On a separate note, while XPayroll does provide the functionality for employees to upload Form 12BB, this is not required by us and is only provided in case you want it for your own records.

Once the last date passes, the XPayroll team will start approving/rejecting the proofs that have been uploaded. Once all the employees have been processed, we will automatically change the following setting under Settings > Tax Deductions Setup. It will be changed to calculate tax on the basis of approved proofs only -

This setting will be changed to require admin approval for any further updates -

Once both these settings have been changed, it will be up to the organization's administrators to approve any further changes to your employees' tax deductions. XPayroll will not process any further updates to proofs either.

As an employer, please encourage your employees to upload these proofs as soon as possible. Once the setting to calculate tax on the basis of proofs is enabled, most employees who have not uploaded proofs will see an increase in their TDS and this should not come as a surprise to them. Once TDS is deducted and paid, it is not possible to refund it to the employee later either.