What is the New Tax Regime?

A simplified tax structure with lower rates but fewer deductions/exemptions like HRA or 80C.

When should Form 16 be issued?

Employers must issue Form 16 by June 15th of the assessment year.

Should I choose the Old or New Tax Regime?

It depends on your investments. If you have high HRA and 80C deductions, Old might be better; otherwise, New is simpler.

What is the maximum limit for Section 80C deductions?

Currently, you can deduct up to ₹1.5 Lakhs through investments like PF, LIC, and ELSS.

How is HRA exemption calculated?

It's the minimum of: Actual HRA received, 40/50% of salary, or Rent paid minus 10% of salary.

When is the deadline to submit investment proofs to HR?

Usually by January or February to ensure correct TDS deduction in the final quarter.

Does my bonus get taxed differently?

No, bonuses are added to your total income and taxed at your applicable slab rate.

What is Professional Tax (PT)?

It is a state-level tax (max ₹2,500/year) deducted from your salary by the employer.

What is a 24Q statement?

It is a quarterly return filed by the employer to the IT department reporting TDS on salaries.

Are food coupons/vouchers taxable?

Up to ₹50 per meal (roughly ₹2,200/month) is usually tax-exempt if provided via vouchers.

Payroll Compliance

Indian Income Tax Laws (HR)

Refers to the sections of the Income Tax Act, 1961, that govern how employers must deduct tax at source (TDS) from employee salaries and report it to the government. This is a key part of Indian payroll software.

Key Takeaways

Section 192 governs TDS on salary.
Differentiation between Old and New Tax Regimes.
Mandatory issuance of Form 16 to employees.
Quarterly filing of 24Q statements.

Expert Profile

Ameena Abdurahiman

Subject Matter Expert (HR & Compliance)

Ameena Abdurahiman

Subject Matter Expert (HR & Compliance)

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