{"id":2821,"date":"2021-03-23T17:35:11","date_gmt":"2021-03-23T12:05:11","guid":{"rendered":"https:\/\/rzpwp.blog\/?p=2821"},"modified":"2022-07-26T11:05:20","modified_gmt":"2022-07-26T05:35:20","slug":"dual-tax-regime-compliant-payroll-software-opfin","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/dual-tax-regime-compliant-payroll-software-opfin\/","title":{"rendered":"Upgrade to a Dual Tax Regime Compliant Payroll Software this Financial Year"},"content":{"rendered":"<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Earlier this year, the Finance Ministry of India introduced the dual tax regime, a whole new tax regime to the existing one, bringing in prevalent changes to the way taxes are calculated for employees from the financial year 2020-2021.\u00a0\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Since the financial year has just begun, businesses need to quickly upgrade to a payroll software that is compliant with the dual tax regime and automate their <a href=\"https:\/\/razorpay.com\/payroll\/payroll-processing\/\">payroll process<\/a>.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Let\u2019s talk a little bit about the tax regime.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">As opposed to the higher tax slabs with benefits and exemptions, the new tax regime is all about lower tax slabs, but without the benefits and exemptions. The Union Budget 2020 allows employees to choose from the two options.<\/span><\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2902 aligncenter\" src=\"http:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/04\/Dual-tax-1.png\" alt=\"dual tax regime payroll software\" width=\"2400\" height=\"1256\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/04\/Dual-tax-1.png 2400w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/04\/Dual-tax-1-300x157.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/04\/Dual-tax-1-1024x536.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/04\/Dual-tax-1-768x402.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/04\/Dual-tax-1-1536x804.png 1536w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/04\/Dual-tax-1-2048x1072.png 2048w\" sizes=\"auto, (max-width: 2400px) 100vw, 2400px\" \/><\/p>\r\n<ul data-read-aloud-multi-block=\"true\">\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The new income tax for employees whose income lies between \u20b95 lakh and \u20b97.5 lakh is 10% whereas according to the old regime, the income tax is 20%<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The next slab is for the range between \u20b97.5 lakh and \u20b910 lakh, where the tax is 15% while the tax is 20% in the old regime<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Employees with income between \u20b9 10 lakh and \u20b9 12.5 lakh would pay 20% tax, which is reduced from 30% in the old regime<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Finally, for income over \u20b9 15 lakh, the tax is 30%<\/span><\/li>\r\n<\/ul>\r\n<h2 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The perks of the new income tax regime<\/span><\/h2>\r\n<h3 data-speechify-sentence=\"\"><b>Lower taxes<\/b><\/h3>\r\n<p data-speechify-sentence=\"\"><b> <\/b><span style=\"font-weight: 400;\">Your employee can take home more money than before under the new tax regime since the taxes are reduced. Meaning, your employee need not exclusively invest in tax saving schemes.<\/span><\/p>\r\n<h3 data-speechify-sentence=\"\"><b>Fewer compliances<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The new tax regime is very straightforward compared to the old regime. Except for NPS, savings interest from the post office, and PPF, benefits, and exemptions are cut off, making the tax filing process much simpler.<\/span><\/p>\r\n<h3 data-speechify-sentence=\"\"><b>Flexible investments<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">With the new tax regime, your employee can personalise their investments that provide better fluidity to withdraw their money.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Like we mentioned before, the benefits and exemptions are nearly cut off. HRA (House Rent Allowance), housing loan interest, investments like life insurance, provident fund, etc. (Section 80C investments), medical insurance, education loan interest, savings bank interest, and leave travel allowance are removed.\u00a0\u00a0<\/span><\/p>\r\n<h2 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">What exemptions are still available in the new regime<\/span><\/h2>\r\n<ul data-read-aloud-multi-block=\"true\">\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Leave encashment on retirement<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Scholarship received for education<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Funds received on VRS up to <\/span><span style=\"font-weight: 400;\">\u20b95 lakh<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Maturity amount and short term withdrawals from NPS<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Pension commutations<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><a href=\"https:\/\/razorpay.com\/learn\/employee-provident-fund-epf-scheme\/\"><span style=\"font-weight: 400;\">EPF<\/span><\/a><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Death, retirement benefits<\/span><\/li>\r\n<\/ul>\r\n<h2 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">How to choose between the two income tax regimes<\/span><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Your employee should consider both the advantages and disadvantages of the new tax regime in comparison with the old one. They should calculate their deductions, income after taxes, and the total tax for their annual income, based on both the regimes.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">This will help them understand what works for them the best.\u00a0<\/span><\/p>\r\n<h2 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">How the new income tax regime will impact your payroll\u00a0<\/span><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/payroll\/payroll-compliance\/\">Payroll compliance<\/a> is absolutely important, especially when there is a change in regulations. Having out-of-date payroll software will definitely not help you with change management and will limit your productivity since payroll can be largely time-consuming if done manually.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Also, let\u2019s not disregard the fact that your HR team will have to spend hours and hours every month to keep step with compliance, whereas they could be contributing to the business.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">If you\u2019re wondering what can help your business minimise impact, let\u2019s introduce <a href=\"https:\/\/razorpay.com\/payroll\/\">RazorpayX Payroll<\/a>, a payroll software that will put an end to all your payroll processing troubles.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll is compliant with the dual tax regime. The payroll software allows your employee to choose their preferred regime during the time of their investment declaration for the financial year.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">They can also see their projected taxes for the year based on their income and regime so that they can make an informed decision keeping their tax liabilities and savings in mind.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Your employee can then file their declarations and edit them based on their regime.<\/span> <span style=\"font-weight: 400;\">RazorpayX Payroll<\/span><span style=\"font-weight: 400;\">\u00a0also recommends a breakup predicated on their salary, so that they\u2019re aware of the benefits of both regimes.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5658\" src=\"https:\/\/razorpay.com\/blog-content\/uploads\/2020\/02\/Screenshot-2021-03-23-at-5.12.52-PM.png\" alt=\"Dual tax regime\" width=\"2876\" height=\"1583\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/02\/Screenshot-2021-03-23-at-5.12.52-PM.png 2876w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/02\/Screenshot-2021-03-23-at-5.12.52-PM-300x165.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/02\/Screenshot-2021-03-23-at-5.12.52-PM-1024x564.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/02\/Screenshot-2021-03-23-at-5.12.52-PM-768x423.png 768w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/02\/Screenshot-2021-03-23-at-5.12.52-PM-1536x845.png 1536w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/02\/Screenshot-2021-03-23-at-5.12.52-PM-2048x1127.png 2048w\" sizes=\"auto, (max-width: 2876px) 100vw, 2876px\" \/><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">This helps you completely automate your payroll process without having to worry about the dual tax regime compliance, without any manual intervention.<\/span><\/p>\r\n<p style=\"text-align: center;\" data-speechify-sentence=\"\"><strong>[ Suggested read: <a href=\"https:\/\/razorpay.com\/blog\/automate-payroll-process-with-payroll-software-opfin\/\">Automate Your Employee Salaries with <span style=\"font-weight: 400;\"><strong>RazorpayX Payroll<\/strong><\/span><\/a>\u00a0]<\/strong><\/p>\r\n<h2 data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll for all your payroll needs<\/span><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Relying on outdated payroll software will create a big setback for your business. <\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">RazorpayX Payroll will help you carry out your business operations without any interruptions since the software scales itself and helps you stay up-to-the-minute with changing regulations and compliance.\u00a0<\/span><\/p>\r\n\r\n<div style=\"text-align: center;\" data-speechify-sentence=\"\"><a style=\"border-radius: 3px; background: #528ff0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/payroll\/?r=dualtaxregime\" target=\"_blank\" rel=\"noopener noreferrer\">Try RazorpayX Payroll today!<\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>RazorpayX Payroll is compliant with the dual tax regime. It allows your employee to choose their preferred regime during the time of their investment declaration.<\/p>\n","protected":false},"author":32,"featured_media":2825,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[66],"tags":[57],"class_list":{"0":"post-2821","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payroll","8":"tag-technology"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/2821","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=2821"}],"version-history":[{"count":0,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/2821\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/2825"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=2821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=2821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=2821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}