How to set a cut-off date or restrict employees from changing their tax regime?

For Indian Taxation, we currently follow 2 types of tax regimes the New Tax Regime and the Old Tax Regime. Each has its own benefits and an employee can choose which regime is best for them based on their income and investments. The major difference between the two would be the net taxable income limit for tax exemption, the percentage of tax as per slabs, and the investments allowed to be exempt from tax.

In Keka, you can allow or restrict employees from changing their tax regimes.

To do this, go to Payroll (1) and navigate to Settings (2). Here, go to Pay Groups and click on Configure (3) adjacent to the Pay Group for which you would like to change the settings.

Here, move to Taxes & Deductions and under the options available on the right select Update Tax Regime.

In the overlay window, you can uncheck Allow employees to change the tax regime in case you do not want to allow employees to change their tax regime. When this is unchecked only admins will be able to change the tax regime on behalf of the employee. In case you would like to allow employees to change it but have a cut-off date, you can check the box and use the options available to configure the cut-off date.

We hope you now have a better understanding of how to set a cut-off date or restrict employees from changing their tax regime on Keka.

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