Professional tax is a direct tax that applies to individuals earning by way of employment or practising their profession. Explore more through this article.
Form 12BB is a tax declaration form where an employee needs to mention all tax-saving investments made or to be made in the financial year and submit it to their employers. Employers consider such details for deducting income from employee’s salary.
Read on to understand the year-end payroll checklist and ensure a seamless closure to your current financial year accounting books.
TDS Challan 281 is used to pay TDS by corporates and non-corporate businesses. There are 2 modes for making TDS payments – Online and offline mode.
Employee Provident Fund (EPF) registration is mandatory for an organisation where employee strength exceeds 20. For most employees, the contribution rate is 12% of the fixed wages of an employee, excluding HRA.
Section 194A of the Income Tax Act states that tax has to be deducted at source on interest (other than interest on securities).
RazorpayX Payroll not only automates PF registration for employees but also takes care of the entire payroll process for startups and small business owners.
According to the draft of new wage rules under the Code on Wages 2019, wages for calculation of PF contributions will be at least 50% of employee total pay.
Allowances are a part of employees’ CTC (Cost-to-Company) and are paid in addition to basic salary. Employees can use these allowances to save their taxes.
Deductions under Section 80 of the Income Tax Act can be claimed only if tax-saving investments are made, or eligible expenses are incurred.