Updated in March- 2025 | Subscribe to watch greytHR how-to video
greytHR is ready to make the latest budget changes hassle-free. With revised income tax slabs under the new regime, greytHR will automatically function according to the latest budget changes for FY 2025-26 from April 2025. This ensures a seamless transition to the new tax rules and payroll compliance requirements.
You will see these changes directly in your greytHR Admin portal on the Income Tax page and in the ESS portal on the IT Declaration page.
No tax on income up to ₹12 lakh (₹12.75 lakh for salaried individuals with standard deduction).
The Marginal Relief (relief on additional tax) threshold has been increased to INR 12 lakh, ensuring taxpayers close to a tax slab change do not pay disproportionately higher taxes. This applies to the New Tax Regime only.
Lower tax rates for middle-income groups, making payroll calculations more efficient.
Revised tax slabs for the New Tax Regime:
| Revised tax slabs | Revised tax % |
|---|---|
| Up to INR 4 lakh | Nil |
| Above INR 4 lakh to INR 8 lakh | 5% |
| Above INR 8 lakh to INR 12 lakh | 10% |
| Above INR 12 lakh to INR 16 lakh | 15% |
| Above INR 16 lakh to INR 20 lakh | 20% |
| Above INR 20 lakh to INR 24Lakh | 25% |
| Above INR 24 Lakhs and above | 30% |
The new tax slabs and related updates will be effective from April 1, 2025.
The updated tax slabs under the New Tax Regime are reflected in several sections within greytHR, including:
Payroll Inputs → Income Tax: Displays updated tax calculations based on the new slabs.
Employee IT Declaration (Admin & ESS): This shows the revised tax structure when employees declare their income details.
Proof of Investment (POI) Overview: Updates in tax computations based on submitted investment proofs.
Form 16 & 24Q: Automatically considers the revised slabs for tax filing and documentation.
System Settings → Income Tax → Tax Slabs (New Regime): Displays the updated slab structure for reference.
Income Tax Reports (Monthly & Annual Statements): Reflects changes in monthly and annual tax reports.
The following key pointers from the last budget remain unchanged for FY 25-26:
Standard Deduction:
INR 75,000 for employees opting for the New Tax Regime.
INR 50,000 for employees opting for the Old Tax Regime.
Employer NPS Exemption:
For the New Tax Regime, the deduction for contributions to the New Pension Scheme (NPS) will be 14% of the employee’s Basic salary.
For the Old Tax Regime, it will remain at 10%.
No, the Old Tax Regime remains unchanged.
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