Choose the Tax Regime

You need to select your preferred tax regime for the financial year within the defined window period for selecting the tax regime.

As a Payroll Administrator user or an employee, you need to select the required tax regime. This timeline is available only at the beginning of each financial year. The tax regime can be the old or new tax regime, that forms the basis for the investment declaration flow. The tax regime needs to be maintained both for the regular employees and new hires.

Note: For first time setting, you need to save the Income Tax TRU association for an employee, before setting the tax regime.

As an employee you can select the tax regime from the Employee Self Service portal (Me > Pay > Income Tax > Investment Declaration).

Here's how you can set the tax regime for an employee:

1. As a Payroll User, from the home page navigate to Payroll Calculation > Manage Person > Manage Calculation Card > Income Tax Deductions > Choose Tax Regime.

2. Select the Old Tax Regime or New Tax Regime.

   • New Tax Regime is limited to a fewer sections in investment declaration such as declaring the house property, house loan, and other income information.
   • Old Tax Regime includes declaring the house rent, house property, house loan, deductions in Chapter VIA and other income information.

3. Click Save.