Tax Exemptions
TAX SECTIONS
Tax Exemptions
Configure salary components eligible for tax exemption — HRA, LTA, meal vouchers, and more — with proof tracking.
Exemptions
👥 WHO USES THIS
▸Payroll admins defining exemptions
▸Finance configuring tax rules
▸HR designing tax-efficient packages
✨ WHAT YOU'LL ACHIEVE
▸Tag components as exempt
▸Track required proofs
▸Apply exemptions in TDS
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