Tax Deducted at Source (TDS) is income tax deducted from money paid at the time of making payments to the employee like rent, salary, interest, bonus, etc. by the company.
Challan is issued when the taxpayer deposits TDS and TCS.
As per the new tax regime in the Union Budget, 2020. There is an option for individuals and HUF to pay taxes at lower rates without claiming deductions under various sections. The new regime and old regimes tax rates are mentioned below:
| Income Tax Slab (inr) | Tax Rates As Per New (inr) | Tax Rates As Per Old Regime (inr) |
| 0 - 2,50,000 | Nil | Nil |
| 2,50,001 - 5,00,000 | 5% | 5% |
| 5,00,001 - 7,50,000 | 12500 + 10% of total income exceeding 5,00,000 | 12500 + 20% of total income exceeding 5,00,000 |
| 7,50,001 - 10,00,000 | 37500 + 15% of total income exceeding 7,50,000 | 62500 + 20% of total income exceeding 7,50,000 |
| 10,00,001 - 12,50,000 | 75000 + 20% of total income exceeding 10,00,000 | 112500 + 30% of total income exceeding 10,00,000 |
| 12,50,001 - 15,00,000 | 125000 + 25% of total income exceeding 12,50,000 | 187500 + 30% of total income exceeding 12,50,000 |
| Above 15,00,000 | 187500 + 30% of total income exceeding 15,00,000 | 262500 + 30% of total income exceeding 15,00,000 |
New tax regime slab rates are not differentiated based on age group. However, under old tax regime the basic income threshold exempt from tax for senior citizen (aged 60 to 80 years) and super senior citizens (aged above 80 years) is inr 3 lakh and inr 5 lakh respectively.
However, under new tax regime person cannot claim up to 70 income tax deductions while calculating taxes. Hence, every person has to make his/her own calculation as per old and new tax regime and calculate which one is beneficial based on type of investments made and returns earned on those investments.
TDS, otherwise known as Tax Deduction at Source, generally refers to the deduction of tax from the salary before an employee gets paid.
Generally, the TDS is calculated before the monthly salary is rolled out. Once the deduction has been carried out, the salary is processed.
This process is very crucial to ensure the accuracy has been maintained through and through.
While TDS processing can be considered through our payroll system - PionHR, certain factors need to be addressed.
TDS is considered a mandatory task for each organization as the deduction of the salary and submitting the tax to the government with the help of the Payroll Outsourcing Services like PionHR need to be carried out before the due date.
However, it has to be done without facing any erroneous issues to avoid penalties from the government. That is why one has to pay extra care towards the fulfillment of the formalities. It is at this time one single boxing payroll systemization such as PionHR can come in handy.
There are undoubtedly many formalities and requirements that a company has to go through to get the TDS processed. Some of these factors are mentioned below.
TDS processing service like PionHR provides more detailed assistance to assure the insurance of the whole procedure by delivering extra solutions such as,
The procedure of filing the TDS has to be conducted smoothly; nonetheless, that is why many human resources organizations have included certain payroll compliance policies to be carried outmore analytically and legally.
With the compliance checklist’s help and the respective place’s governing payroll process, the procedure can be completed. However, here are some of the bases that many payroll systems like PionHR use to customize the requirement.
Each country has its own sets of rules upon the minimum wages based on the occupation, sector, and employee variation. According to the Minimum Wage Act of India, the employer has to give a minimum wage to the employee.
The savings of the employee are primarily dependent on the provident fund. The PF is a tool for saving money. The EPFO comes with a set of regulations assuring the adherence of the whole step. If one organization fails to adhere to the rules, that firm will face the penalty.
The ESIC, generally known as Employee State Insurance Corporation, provides the employee and their respective family with healthcare schemes. An organization with more than 20 employees with a gross employee salary is less than the 21,000 INR must register to the ESIC Act.
According to the Payment of the Gratuity Act, 1972, all institutions, such as NGOs, educational institutes, the hospitality sector, etc., having an employee strength of 10 or more t are required to pay Gratuity to the employees.
Conclusion
To not attract the penalty bestowed by the government of the respective place, use PionHR, one of the best payroll software India, has accumulated knowledgeable and skilled people under their team having the proficiency over the outsourcing and managing payroll services. With us, you will never be running late on filing tax, as our precision and timely delivery will always keep you ahead.
