Validating employee tax deductions and exemptions

To accurate calculate an employee’s take home salary, Opfin has to calculate several deductions like TDS, PF, ESI and Professional Tax. Of these, the TDS (tax deducted at source) is probably the trickiest since there are a lot of tax exemptions and deductions that are usually applicable. For example -

  • HRA exemption
  • Section 80C (Investments in ELSS funds, PPF, FD, ULIP etc.)
  • Section 80CCD (Investments in NPS)
  • Section 80D (Expenses towards medical insurance, preventive health checkup and other medical expenses)
  • Section 80DD (Deduction for rehabilitation of handicapped dependent relative)
  • Section 80E (Interest on Education Loan)
  • Section 80G (Donations to charitable institutions)
  • Section 24 (Home loan interest)
  • Section 80EE (further tax benefits for first time home buyers)

Managing all these deductions is a nightmare not just for the employees, but also for organizations since they are supposed to validate that all the deductions that an employee has applied for are actually valid. Typically, organizations will let employees declare their intentions for such deductions at the beginning of the year, and then ask for proof of the same towards the end of the year.

In our effort to simplify matters, Opfin automatically gathers this information from employees through our portal. Employees can enter the deductions that they think are going to apply to them, and Opfin will use that to calculate their TDS liability. When it is time to submit proofs, Opfin again provides a simple interface for employees to upload these and will then validate them for the organization as well. Thus, the company HR or administrators can offload this entire exercise on Opfin, and we will ensure that all the compliance is taken care of correctly.

Make your Payroll Process Hassle-free with Opfin

Want to use Opfin to validate your employees’ tax deductions? If you’re already a customer, please send us an email at If not, what are you waiting for? Sign up!