Tax Exemptions

• Navigate to Tax and Statutory Compliances → Tax Rules → Tax Exemptions

• This feature helps apply statutory exemptions to employees’ income for accurate TDS (Tax Deducted at Source) computation. These exemptions are pre-defined in the application as per the latest Income Tax Act provisions and are applied automatically during payroll processing.

• Exemptions are pre-defined and linked to the employee’s salary components.

• The system applies exemptions automatically based on component eligibility and tax regime (Old or New).

• Validation ensures exemption limits are not exceeded.

Fig: Tax Exemptions

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