With Payroll21, Income Tax (IT) handling related to employee salary is very simple.

All the relevant IT sections are predefined in Payroll21 with qualifying/deduction amount/percentage. At the time of defining salary components, if IT is applicable on a component, then the relevant information are tagged (IT section, component level qualifying amount etc). A set of investment/saving components are available that are eligible for IT benefits. User can define new investment/saving components by specifying the IT section and qualifying amount at component level, if applicable.

Any other income with qualifying amount can also be entered (that appears in Form 16).

User can decide if IT to be calculated manually or automatically for individual employees. If manual option is selected, then user can import from an excel file or manually enter the IT to be deducted for those employees. In automatic calculation, Payroll21 calculates the IT (at the time of salary processing) based on the total estimated IT for that year, IT already paid, investment made by the employee in tax saving scheme etc. After calculating the remaining IT to be paid, it is distributed equally on the remaining months in the financial year.

After salary processing, Payroll21 allows user to change manually the final IT to be deducted, before confirming the process.

IT computation sheet, Form 16, Form 24 , Form 24Q and Form27A are the standard IT related outputs from Payroll21.

To know more on Payroll21 click here.