Define Window Period for Tax Regime

You can define the period within which the employees can select the preferred tax regime for the financial year.

As a Payroll Administrator or Payroll User, you need to define the period in which employees can set 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.

If you opt for the new tax regime, it cannot be changed in that finanacial year. For new joiners, joining in the middle of a financial year, the new tax regime can be selected.

Define Window Period to Select Tax Regime

Here's how you can define the window period to set the tax regime for an employee:

1. Set the scope for this task by selecting the parent Legal Entity and then the Legal Reporting Unit, as described in previous tasks.

2. Select Manage Legal Reporting Unit HCM Information in the implementation project task list.

3. On the Manage Legal Reporting Unit HCM Information page, select the Tax Reporting Unit and click Next.

4. Select the Tax Reporting Unit Type and click Next to fill the respective information.

5. In the Tax Regime Window Information section, specify the timeline to select the tax regime.

   Window Period for Selecting the Tax Regime

   Field	Description
   Effective Period Start Date	Enter the start date from when the required tax regime can be selected.
   Effective Period End Date	Enter the end date before which the tax regime needs to be selected.

6. Click Submit.