Maintaining Tax Rates

Section 115BAC was Introduced in the Union Budget 2020 and effective from the financial year 2020-21, the New Regime offers a simplified tax structure with lower tax rates. While the Old Tax regime adhere to the conventional exemptions and deductions under various sections, which is now not permissible in the New tax regime. The New Tax regime and the Old Tax regime have differential tax calculations and the Tax incidences and would vary depending on what the employee chooses. In Peoplesoft, different rules are there for the New Regime and the Old regime and Taxes are calculated accordingly. Supporting elements incl Formulas are modified to cater to the tax treatment depending on what tax savings options the employee chooses. TDS VR TAX RGM defines the Regime chosen by the employee.

Tax Slabs for AY 2024-25 ( FY 2025-26) year’s tax budgetary changes can be accessed through position statement Id <statement id no:>.