Employees have the option to select either the New Tax Regime or the Old Tax Regime based on which is more advantageous for their tax circumstances.
By default, the New Tax Regime will be considered if they have not opted for any regime.
The employee can directly update the tax regime in ESS or on behalf of the employee, the tax regime can be imported into the system. To learn more about "How to import the tax regime", please refer to our document“How to import Tax Regime” by clicking here.
Once imported, you can export the same to verify and check the tax regime options chosen by an employee using the “Export Tax Option selection”.
To export the tax regime :
On the home page click “Teams”
Scroll down to the “Employees” menu.
Click “Directory”
Click “Employee Tax”
Click “View Declaration”
Click “Export tax option selection.”
The Tax Option Report is downloaded. In the report, we can see all the employee regime selections.
In the Old Regime, you have the option of Section 10 exemption, Section 24 deduction, and Chapter VI A deduction which is not available in the new regime.
