The income tax components in payroll software are an essential part of ensuring compliance with tax laws and regulations, maintaining accurate payroll records, and minimizing the risk of costly errors or penalties. The purpose of editing income tax components in payroll software is to ensure that the correct amount of taxes is being withheld from an employee's paycheck in accordance with the relevant tax laws and regulations.

The Income Tax page in the greytHR Admin portal helps you to view and edit the income tax component details for employees individually. The page also displays the selected employee's current Tax Regime selection. The application divides the components between various tabs. These tabs are Income, Income from Previous Employer, Exemptions, Perquisite, Deductions, Other Income, House Property Income, Regime, and Result.

To view the Income Tax page, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

You can perform the following actions on the Income Tax page:

View income details.
Add income details from previous employer.
Add HRA exemption.
Add other exemption details.
View perquisite details.
View deductions details.
View and add Chapter VIA deductions details.
View and add other income details.
Add interest on housing loan details.
Add income/loss from Let Out Property.
Choose regime.
View and verify Income Tax results.
Preview and download the Income Tax report.

View income details

The Income tab displays the various components of the employee's Income Tax for the entire financial year. The tab also displays the Total Annual Salary and the Total Ad-hoc Salary amount for the selected employee.

Add income details from previous employer

If an employee has joined in the middle of a financial year, you can add the employee's income details from the previous employer on the Income Tax page. To add the details for the current financial year, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Income From Previous Employer tab, double-click on an empty row cell under the Month column to start adding the details.
From the Month dropdown list, select the month for which you are adding the income details.
Repeat the procedure for the remaining columns, i.e., Income After Exemption, Professional Tax paid, PF paid, Total Tax paid, and LTA Exemption.
Click Save to save the income details from the previous employer.
Note: The application calculates Income Tax, Surcharge, and Cess automatically based on the values entered.

Add HRA exemption

To add/edit the HRA exemption, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Exemptions tab, click Monthly Rent. The House Rent pop-up appears.
In the first text box, enter the amount employee pays monthly towards house rent and click the Meatball button (…) to add the value to the table.
In the second text box, enter the appropriate HRA amount and click the Meatball button (…) to add the value to the table.
Click Save to save the values and Close to close the pop-up.
Note: If you are editing the existing HRA amount, click Clear to clear the table and start with step 3.
Click Rent Proof Info to add the employee's rent proof details.
Add the relevant details, click Save and Close to finish adding the rent proof details.
Select Is Proof Submitted.
Click Save to save the exemption details.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Add other exemption details

To add other exemption details for the selected employee, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Exemptions tab, the other exemptions are available under the section Other Exemptions. Let us take the example of LTA Exemption.
Select the LTA Exemption checkbox and left-click the text box to enter the exemption amount.
Click Save to save the exemption details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

The Exemptions tab now displays the Total Exemptions Amount based on your changes.

View perquisite details

Perquisites are additional benefits an organization offers to its employees free of cost or at discounted rates. These benefits are taxable for employees. The Perquisite tab displays the perquisite calculation for the selected employee.

View deductions details

This Deductions tab displays statutory deductions like PF. Once you, as an admin, consider the employee's IT declaration, the amount of the deductions reflect here. The tab also displays the Total Chapter VI A Deduction and Total Prof.Tax amount.

Add Chapter VIA deduction details

Under the Deductions tab, you can add deduction details related to Chapter VIA for an employee. To add the details, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Deductions tab, from the Section dropdown list, select 80C and Others. The table displays the related components.
Under the Narration column, double-click an empty row and select the component related to Chapter VIA. The Section and Max Limit amount automatically display.
Double-click the cell under the Gross column to enter the amount employee has invested in the scheme. The Qualifying amount automatically displays.
Select the checkbox under the Proof column, if applicable.
Double-click the cell under the Remarks column to add remarks, if any.
Click Save to save the deduction details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

View and add other income details

Under the Other Income tab, you can view the Other Income and Short Term Income details of the selected employee. To view and add other income details, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Other Income tab, in the Other Income table, under the Description column, double-click an empty row and select the required option. The Max Limit amount of the selected option automatically displays.
Double-click the cell under the Amount column to enter the amount employee has received.
Double-click the cell under the Remarks column to add remarks, if any.
Click Save to save the details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Add interest on housing loan details

The House Property Income tab displays the Interest on Housing Loan (Self Occupied) and Total Income/Loss from Let Out Property. Based on the inputs provided by the employee in the Self Occupied and Let Out Property sections, the application calculates the Total Income from House Property.

You can add the lender's details under the House Property Income tab. To add the details, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the House Property Income tab, in the Income from self-occupied property table, left-click the cell under the Amount column to enter the amount.
In the Lender's Name text box and Lender's PAN number, enter the relevant details.
Click Save to save the details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Add income/loss from let out property

Under the House Property Income tab, you can calculate and add the selected employee's income/loss from the property employee has let out on rent. To add the details, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the House Property Income tab, in the Income from Let-out property table, left-click the cell under the Amount column to enter the amount against each detail in the Particular column.
Click Save to save the details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Note: If the employee has let out more than one property on rent, you can click Add Let-out Property to add details of the second property.

Choose regime

To choose a regime for the employee on behalf of whom you are editing Income Tax, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Regime tab, from the Regime dropdown list, choose a regime.
Click Save to save the details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

View and verify income tax results

The Result tab displays the summary of the Income Tax calculations. The tab displays Income Tax, Surcharge, Education Cess, Total amount, and Remaining Months in the current financial year for calculating tax. You can also use this tab to verify the tax calculation amount.

To verify the Income Tax calculations, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Result tab, click Verify. A success message appears.

Preview and download the Income Tax report

To preview and download the Income Tax report, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under any tab, click Preview to view the Income Tax report in the browser.
Click Download to download the Income Tax report in excel format.

Frequently Asked Questions:

What is the purpose of the Income Tax page in greytHR?

The Income Tax page allows admins to view, update, and verify employee-wise income tax details to ensure accurate tax calculation and statutory compliance.

Can Income Tax details be edited employee-wise?

Yes, Income Tax components can be viewed and edited individually for each employee.

What information is shown under the Income tab?

The Income tab displays all income components for the financial year, including Total Annual Salary and Total Ad-hoc Salary.

Can I only view income details, or can I edit them?

You can view income details. Editing is allowed only where applicable, based on payroll configuration.

When should income from a previous employer be added?

Income from a previous employer should be added when an employee joins the organization in the middle of a financial year.

What details can be added from a previous employer?

You can add income after exemption, professional tax paid, PF paid, total tax paid, and LTA exemption.

How can admin add income details from previous employer?

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Income From Previous Employer tab, double-click on an empty row cell under the Month column to start adding the details.
From the Month dropdown list, select the month for which you are adding the income details.
Repeat the procedure for the remaining columns, i.e., Income After Exemption, Professional Tax paid, PF paid, Total Tax paid, and LTA Exemption.
Click Save to save the income details from the previous employer.
Note: The application calculates Income Tax, Surcharge, and Cess automatically based on the values entered.

Is tax recalculated automatically after adding previous employer income?

Yes, Income Tax, surcharge, and cess are calculated automatically based on the entered values.

How can admin add or edit HRA exemption details?

To add/edit the HRA exemption, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Exemptions tab, click Monthly Rent. The House Rent pop-up appears.
In the first text box, enter the amount employee pays monthly towards house rent and click the Meatball button (…) to add the value to the table.
In the second text box, enter the appropriate HRA amount and click the Meatball button (…) to add the value to the table.
Click Save to save the values and Close to close the pop-up.
Note: If you are editing the existing HRA amount, click Clear to clear the table and start with step 3.
Click Rent Proof Info to add the employee's rent proof details.
Add the relevant details, click Save and Close to finish adding the rent proof details.
Select Is Proof Submitted.
Click Save to save the exemption details.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Is it mandatory to submit rent proof for HRA?

Yes, rent proof details must be added and marked as submitted for HRA exemption to be considered.

Can other exemptions like LTA be added?

Yes, exemptions such as LTA can be added under the Other Exemptions section.

How can an admin add other exemption details for a selected employee?

To add other exemption details for the selected employee, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Exemptions tab, the other exemptions are available under the section Other Exemptions. Let us take the example of LTA Exemption.
Select the LTA Exemption checkbox and left-click the text box to enter the exemption amount.
Click Save to save the exemption details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

The Exemptions tab now displays the Total Exemptions Amount based on your changes.

What are perquisites in Income Tax?

Perquisites are taxable benefits provided to employees, either free of cost or at concessional rates.

Can perquisite details be edited?

No, perquisite details are system-calculated and available for view only.

What information is shown under the Deductions tab?

It displays statutory deductions like PF, Professional Tax, and total Chapter VIA deductions.

When do deduction values appear here?

Deductions appear once the employee’s IT declaration is considered.

What deductions can be added under Chapter VIA?

You can add deductions such as 80C and other eligible sections as per tax rules.

How can admin add Chapter VIA deduction details?

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Deductions tab, from the Section dropdown list, select 80C and Others. The table displays the related components.
Under the Narration column, double-click an empty row and select the component related to Chapter VIA. The Section and Max Limit amount automatically display.
Double-click the cell under the Gross column to enter the amount employee has invested in the scheme. The Qualifying amount automatically displays.
Select the checkbox under the Proof column, if applicable.
Double-click the cell under the Remarks column to add remarks, if any.
Click Save to save the deduction details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Is proof mandatory for Chapter VIA deductions?

Proof is optional unless mandated by company policy or statutory requirements.

Does the system validate maximum limits automatically?

Yes, the qualifying amount is calculated automatically based on section limits.

What types of income can be added under Other Income?

You can add other income and short-term income details declared by the employee.

How can admin view and add other income details

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Other Income tab, in the Other Income table, under the Description column, double-click an empty row and select the required option. The Max Limit amount of the selected option automatically displays.
Double-click the cell under the Amount column to enter the amount employee has received.
Double-click the cell under the Remarks column to add remarks, if any.
Click Save to save the details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

How to add interest on housing loan details?

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the House Property Income tab, in the Income from self-occupied property table, left-click the cell under the Amount column to enter the amount.
In the Lender's Name text box and Lender's PAN number, enter the relevant details.
Click Save to save the details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Is lender PAN mandatory?

Yes, lender PAN details are required while adding housing loan interest.

How can admin add income/loss from let out property?

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the House Property Income tab, in the Income from Let-out property table, left-click the cell under the Amount column to enter the amount against each detail in the Particular column.
Click Save to save the details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

Note: If the employee has let out more than one property on rent, you can click Add Let-out Property to add details of the second property.

Can multiple let-out properties be added?

Yes, you can add details for more than one let-out property.

Can an admin change the employee’s tax regime?

Yes, the admin can select or change the tax regime under the Regime tab.

How can admin choose regime for an employee?

To choose a regime for the employee on behalf of whom you are editing Income Tax, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Regime tab, from the Regime dropdown list, choose a regime.
Click Save to save the details. A success message appears.
Click Recalculate to recalculate the Income Tax for the selected employee. A success message appears.

What information is shown in the Result tab?

It shows Income Tax, surcharge, education cess, total tax amount, and remaining months in the financial year.

What does the Verify option do?

Verify confirms that the Income Tax calculation has been reviewed and validated.

How can admin view and verify income tax results?

The Result tab displays the summary of the Income Tax calculations. You can also use this tab to verify the tax calculation amount.

To verify the Income Tax calculations, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under the Result tab, click Verify. A success message appears.

Can I preview the Income Tax report before downloading?

Yes, you can preview the report directly in the browser.

In which format can the Income Tax report be downloaded?

The report can be downloaded in Excel format.

How can admin preview and download the Income Tax report?

To preview and download the Income Tax report, from the greytHR Admin portal, hover over the 9 dots and go to Payroll > Payroll Inputs > Income Tax.

On the Income Tax page, from the select an employee search box, search for the employee whose details you want to update.
Under any tab, click Preview to view the Income Tax report in the browser.
Click Download to download the Income Tax report in excel format.

Related articles:

Manage Income Tax (IT) declaration

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