Tax Regime
In this article, we will learn how to switch the Tax between Old Regime & New Regime in Saral PayPack Application.
The employees for whom tax have been ported will be visible under the Tax Regime option with Current Tax Regime type that they have opted in. If any employee wants to switch the Tax Regime type from the existing one. The same can be done under Switch Tax Regime Type. Select the required Regime and the value gets auto saved.
Taxable Income (Old):
This is the net taxable income under the old regime, after considering: standard deduction, HRA, LTA exemptions, 80C (PF, LIC, ELSS etc.), 80D (Health insurance), and other deductions.
Tax on Income (Old):
Tax on income (Old) is the income tax calculated on the taxable income of an employee as per the slab rates under the old tax regime. This amount is worked out after applying all eligible deductions and exemptions that are allowed in the old regime.
Surcharge & Cess (Old)
Surcharge & cess (Old) is the additional tax amount charged over and above the income tax calculated under the old regime. The surcharge is applied when income crosses certain limits, and the cess, which is usually 4% for health and education, is added on the total tax payable.
Total Tax (Old):
Final tax liability under the old regime. It is calculated by adding the income tax on taxable income with the applicable surcharge and cess.
Taxable Income (New):
Income considered for tax calculation under the new tax regime. In this regime, most exemptions and deductions are not allowed, so the taxable income is usually higher compared to the old regime, and it is directly taxed as per the new slab rates.
Tax on Income (New):
It is the tax calculated on the taxable income of an employee as per the slab rates defined under the new tax regime. This amount is arrived at without considering most deductions and exemptions, since they are not allowed in the new regime.
Filter: This option is used to refine the displayed employee records based on specific conditions or parameters.
IAX Info: This option opens the detailed income tax computation sheet for the selected employee. It provides a breakdown of the taxable income, applied deductions or exemptions, and the final tax liability under the chosen regime, allowing for a comprehensive review of the employee’s tax details.
This concludes the section on the tax regime
