{"id":3032,"date":"2020-05-30T10:34:30","date_gmt":"2020-05-30T05:04:30","guid":{"rendered":"https:\/\/rzpwp.blog\/?p=3032"},"modified":"2022-07-26T10:45:16","modified_gmt":"2022-07-26T05:15:16","slug":"payroll-changes-atmanirbhar-bharat-abhiyaan-opfin-razorpay-payroll","status":"publish","type":"post","link":"https:\/\/razorpay.com\/payroll\/payroll-changes-atmanirbhar-bharat-abhiyaan-opfin-razorpay-payroll\/","title":{"rendered":"Payroll Changes Due to Atmanirbhar Bharat Abhiyaan"},"content":{"rendered":"<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Recently, the Atmanirbhar Bharat Abhiyaan package made headlines all across the country. <\/span><span style=\"font-weight: 400;\">The government announced major steps that will be taken to alleviate some of the impacts of the pandemic on the economy.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The package involves fiscal policy and relief measures for various industries as the economic ramifications of the pandemic have left no sector untouched.<\/span><\/p>\r\n<p style=\"text-align: center;\" data-speechify-sentence=\"\"><strong>Read more: <a href=\"https:\/\/razorpay.com\/learn\/highlights-atma-nirbhar-bharat-abhiyaan-economic-package\/\">Highlights from the Atmanirbhar Package<\/a><\/strong><\/p>\r\n<h2 data-speechify-sentence=\"\"><strong>How does Atmanirbhar prompt payroll changes?<\/strong><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">As a part of the relief package, the government also introduced a few measures that will change <a href=\"https:\/\/razorpay.com\/blog\/ebook-payroll-processing-and-compliance\/\">payroll processing<\/a> to an extent. Here are the major payroll changes in effect.<\/span><\/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;\">Reduction in EPF contribution<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Minimised TDS rates\u00a0<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Changes in Direct Tax (ITR filing deadline)<\/span><\/li>\r\n<li style=\"font-weight: 400;\" data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Selection of tax regime (Dual Tax Regime)<\/span><\/li>\r\n<\/ul>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3065\" src=\"https:\/\/razorpay.com\/blog-content\/uploads\/2020\/05\/Table-3.png\" alt=\"payroll changes atmanirbhar razorpay payroll\" width=\"1200\" height=\"469\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/05\/Table-3.png 1200w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/05\/Table-3-300x117.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/05\/Table-3-1024x400.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/05\/Table-3-768x300.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\r\n<h2 data-speechify-sentence=\"\"><strong>EPF contribution rate<\/strong><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Under the Atmanirbhar package, the EPF contribution rate of both employer and employee is reduced to 10% from the previous 12%. This is for all categories of businesses that come under the EPF &amp; MP Act, 1952.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">This payroll change is introduced to aid both employers and employees of over 6 lakh businesses manage funds in a slightly relaxed manner.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">As a result of the reduction in the EPF contribution rate, employees will have access to higher liquid funds because of higher take-home pay. This also helps lower the liabilities of employers to a certain extent.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><b>This payroll change is applicable for the months of May, June, and July.<\/b><\/p>\r\n<p data-speechify-sentence=\"\"><em><b>Note<\/b><span style=\"font-weight: 400;\">: The reduced EPF contribution rate is the minimum number for the period mentioned above. However, employers and employees can make higher contributions.<\/span><\/em><\/p>\r\n<h2 data-speechify-sentence=\"\"><strong>New TDS rates<\/strong><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">During the Atmanirbhar package announcement, the government also called forth the new TDS rates.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">According to the announcement, there is a reduction in the tax deducted at source by 25% for all non-salaried payments. Dividend Income, interest on Fixed Deposit, and more fall under the category and the TDS rates are applicable at different levels.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><strong>The new TDS rates have come to effect as of May 14th 2020 and will continue to be applicable for the financial year 2020-21.\u00a0<\/strong><\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-3066\" src=\"https:\/\/razorpay.com\/blog-content\/uploads\/2020\/05\/Table-4.png\" alt=\"payroll changes atmanirbhar razorpay payroll\" width=\"1200\" height=\"727\" srcset=\"https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/05\/Table-4.png 1200w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/05\/Table-4-300x182.png 300w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/05\/Table-4-1024x620.png 1024w, https:\/\/blog.razorpay.in\/wp-content\/uploads\/2020\/05\/Table-4-768x465.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\r\n<h2 data-speechify-sentence=\"\"><strong>ITR filing deadline\u00a0<\/strong><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The Atmanirbhar relief package also pushed forward a change in filing Income Tax Returns.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The government announced that there would be an extension for ITR filing deadline. Earlier, the ITR filing deadline was July 31st 2020, from which the due date is pushed to December 31st 2020.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">The extension in the deadline is a part of the earlier extension made for receiving Form 16 from March 31st 2020 to June 30th 2020. This is to ease some burden on the taxpayers for the financial year.<\/span><\/p>\r\n<h2 data-speechify-sentence=\"\"><strong>Tax regime selection (Dual Tax Regime)<\/strong><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Although not a part of the Atmanirbhar package, the <a href=\"https:\/\/razorpay.com\/blog\/dual-tax-regime-compliant-payroll-software-opfin\/\">Dual Tax Regime<\/a> has also resulted in payroll changes. The regime brings prevalent changes in the way taxes are calculated from the financial year 2020-21.<\/span> <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.<\/span><\/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=\"\"><strong>Payroll changes &#8211; how to be compliant<\/strong><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Since there are multiple changes in payroll, it is absolutely important for businesses to be compliant.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">If you are dealing with payroll using spreadsheets or an outdated payroll software, it can set you back in more ways than one. Change management is one of the biggest troubles if you have to implement every single one of the payroll changes. This can limit your productivity since payroll processing is laborious and time-consuming.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Next, your HR team will have to spend long hours every month to keep up.\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">If you are wondering how you can manage payroll with minimum impact while being compliant, we have a solution for you.<\/span><\/p>\r\n<h2 data-speechify-sentence=\"\"><strong>RazorpayX Payroll is 100% compliant with payroll changes<\/strong><\/h2>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/payroll\/payroll-compliance\/\">RazorpayX Payroll is compliant<\/a> with all the new regulations that have come about as a part of the Atmanirbhar relief package. You don\u2019t have to worry about dealing with compliance ever again!\u00a0<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">It is also compliant with the Dual Tax Regime, allowing employees 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;\">Employees can 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;\">Further, you completely <a href=\"https:\/\/razorpay.com\/blog\/automate-payroll-process-with-payroll-software-opfin\/\">automate your payroll process<\/a> without any manual intervention.<\/span><\/p>\r\n<p data-speechify-sentence=\"\"><span style=\"font-weight: 400;\">Don\u2019t rely on outdated payroll software while you can carry out your payroll operations without any interruptions. Stay up-to-the-minute with changing regulations and compliance with RazorpayX Payroll while it does all the hard work for you.<\/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=atmanirbhar\" target=\"_blank\" rel=\"noopener noreferrer\">Get started with RazorpayX Payroll<\/a><\/div>\r\n","protected":false},"excerpt":{"rendered":"<p>Payroll changes like reduced EPF and TDS, change in ITR filing deadline, etc were made as a part of Atmanirbhar Bharat Abhiyaan. Read all the details here.<\/p>\n","protected":false},"author":32,"featured_media":3034,"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-3032","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\/3032","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=3032"}],"version-history":[{"count":0,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/3032\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/3034"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=3032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=3032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=3032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}