New Tax Declarations and Proofs – Now Fully Inside HR Blizz for India Payroll Read the release note
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May 5, 2026 ·HR Blizz ·🇮🇳 India

Tax Declarations and Proofs – Now Fully Inside HR Blizz for India Payroll

Employees declare investments and upload proofs directly in ESS. Admins configure, audit and approve from a single dashboard. Every action is logged, transparent, and tied to TDS calculations automatically.

Country-Specific Compliance New Feature New Module Country-Specific (India) Employee Payroll Admin HR Manager Finance / Compliance

The problem it solves: Every year, India payroll teams run the same exhausting cycle. Employees declare investments through emails, spreadsheets, or offline forms. Proofs arrive as scanned attachments or physical documents. Payroll admins reconcile the two manually before TDS finalisation – chasing missing data, decoding inconsistent formats, and answering the same employee queries again and again.

The result is predictable: errors in TDS calculation, audit trails that are hard to defend, and avoidable workload across HR, payroll, and finance.

What we built: A complete, end-to-end India Tax Declaration and Proof Submission Module – built directly into HR Blizz Employee Self-Service and the Payroll Admin Console. Employees declare, upload, and track their tax submissions in one place. Admins configure, audit, and approve from a single dashboard. Every action is logged, transparent, and tied to TDS calculations automatically.

What this means for your team

Tax declarations and proof submissions are

no longer collected over email, spreadsheets, or paper

🔄
TDS calculations are based on admin-approved amounts

not unverified declarations

Employees self-serve from declaration through to

status tracking, removing repeat queries to HR and payroll

📅
The entire process leaves a clean, auditable trail

useful at year-end, during audits, and for compliance reviews

How it works – a clear two-phase process

The module replaces the legacy declaration-and-collection cycle with a structured, time-bound workflow that admins control.

Phase 1 – Declaration (typically April): At the start of the financial year, employees declare their planned investments through the ESS portal. No documents are required at this stage – this phase is for planning. Submissions are auto-approved and feed directly into monthly TDS calculations.

Phase 2 – Proof Submission (typically Q4): Later in the year, employees upload supporting documents against each declared investment. Admins review every proof, validate amounts, and approve, reject, or partially approve. The approved figures replace the planned figures and become the basis for final TDS adjustment.

Timing note: Both phases are governed by submission windows that admins configure to align with the organisation’s payroll calendar. Employees can only submit or edit when the relevant window is open.

What employees can do

CapabilityDetail
Tax Regime SelectionChoose Old or New Regime once per financial year. The system displays a confirmation warning before locking the choice.
Structured Declaration FormTab-organised form covering HRA, 80C/80CCC/80CCD, 80D, Chapter VI-A, House Property, and Other Income & TDS
HRA Copy DataEnter rent and landlord details for April and auto-populate all 12 months in one click – no repetitive entry.
Document UploadUpload proofs (PDF, JPG, PNG, up to 50 MB) against individual line items during the proof submission phase.
Real-Time Status TrackingTrack every submitted item live – Under Review, Approved, Rejected – with admin remarks visible inside the portal.
Save as DraftSave progress at any point and resume later before final submission
Resubmit on RejectionView the admin’s reason for rejection, correct the document or amount, and resubmit – all without leaving the portal.

What payroll admins can do

CapabilityDetail
Centralised DashboardView every employee’s tax regime, declared amount, and submission status in a single screen.
Configurable Submission WindowsSet start and end dates for the Declaration Phase and Proof Submission Phase via Settings → Entity Fields.
Proof Audit WorkflowOpen submissions in Review Mode. Navigate section by section. View uploaded proofs in a side panel and adjust approved amounts where needed.
Approve, Reject, or Partially ApproveEach proof has three possible outcomes. Partial approvals require a written reason – visible to the employee.
Mandatory Comments on DecisionsComments accompany every approval and rejection – employees see them instantly inside ESS, reducing back-and-forth.
Final Audit SummaryThe Final Audit tab consolidates declared vs. approved amounts across all sections – a one-click final approval or rejection.
Tax Regime MonitoringSee Old vs. New regime distribution across the workforce. Mid-year regime changes are system-restricted to protect TDS accuracy.

Tax sections covered

The module supports all major investment and income categories under the Indian Income Tax Act:

HRA
House Rent Allowance

Month-wise rent, landlord PAN, city type.

80C
80C, 80CCC, 80CCD

Life Insurance, PF, ELSS, NPS, LIC Annuity (combined limit ₹1,50,000; additional ₹50,000 via 80CCD(1B) for NPS).

80D
Section 80D

Health insurance premiums for self, family and parents (including preventive health check-up).

VI-A
Chapter VI-A (Others)

Education loan interest (80E), donations, disability deductions (80DD/80U), EV loan interest (80EEB), first-home buyer interest (80EEA).

HP
House Property

Home loan interest and rental income (self-occupied and let-out).

TDS
Other Income & TDS

Interest income, TCS paid, and previous employment income (Form 12B).

Important to know before activation

Tax regime is locked once selected: Each employee selects Old or New Regime once per financial year. Once confirmed, it cannot be changed through ESS. Mid-year backend changes are strongly discouraged and should only be considered with your Account Director.

Storage prerequisite (commercial consideration): Document storage requires an S3 bucket. Two options are available – Mercans-managed storage (billed via Mercans) or customer-purchased storage (configured in the system). Discuss the right option with your Account Director before activation.

Pro tip: Communicate the submission window dates to employees well in advance. Once a window closes, declarations and uploads are locked until the next phase opens – late submissions can directly affect TDS accuracy for that employee.

Works well with: Embedded Employee Change History – every tax declaration action is captured in the employee record alongside other payroll changes.

Audience at a glance

RolePrimary action
EmployeeDeclare investments, upload proofs, track status, resubmit on rejection
Payroll AdminConfigure windows, audit submissions, approve/reject proofs, finalise audit
HR ManagerMonitor regime distribution and submission progress across the workforce
Finance / ComplianceReview final approved amounts before TDS finalisation; verify audit trail
Available now for all India ESS clients on the current platform version. Contact your Mercans consultant to confirm storage configuration and activate the module for your environment.