As the Indian finance minister rolled out new alternate income tax slabs for fiscal year 2020-21, it has been a discussion among HR and payroll officials on how to manage the new scheme in their existing payroll software?
If you are also worried about this, we have got you covered. Moreover, if you are still not using a payroll software and managing payroll using spreadsheets, there was never a better time to switch to a payroll software.
Our payroll solution, Runtime Payroll, supports the new alternate income tax slabs. Since this choice can be exercised by employees individually, you have the option to specify the preference for each employee.
What is alternate tax scheme?
Under the alternate tax scheme, an individual can choose to opt for alternate rates of taxation that provide lower tax but disallows certain deductions under chapter VI-A. There are around 70 such deductions which will be unavailable to an individual if he/she choose the new scheme. Those who continue under old scheme, will get taxed at existing rates from previous fiscal year and will get benefit of all the existing deductions. It is a move towards simplification of tax laws and is considered as a step towards elimination of many deduction options altogether in future years.
How Runtime HRMS can help?
Runtime Payroll comes equipped with the option to specify alternate tax slabs for individual employee as per their preference. The program automatically calculates tax as per chosen option by allowing/disallowing applicable deductions.
Ensure complete peace of mind with Runtime HRMS & Payroll Software.
Conclusion
To stay updated with the latest compliance you must use an HRMS & Payroll Software. Manual processes are prone to risky errors and legal issues. We suggest you to take a free trial of Runtime HRMS to explore it's feature and suitability for your business.
