TDS & Taxes: The Smarter Way to Do Employee Taxes

Taxes are tough to grasp due to continually changing tax regulations and words such as tax exemption, tax saving, tax deduction, tax refund, and so on. Most of the time, we are unaware of our tax liabilities and potential savings.

In this blog, we will show you how to do employee tax calculation and introduce the essential tax-saving choices – so that next time, you can do your arithmetic and take the necessary steps to save the most Tax.

Before we proceed, let us define income tax and the components used to calculate income tax.

What is Income Tax?

The Income Tax Act of 1961 states that the federal government charges taxpayers (individuals and organizations) an income tax depending on their earnings (commonly known as taxable income).

Typically, income tax is calculated by multiplying the amount of taxable income by the tax rate. Tax rates may differ depending on the qualities of the taxpayer and the source of income.

A person’s income is divided into five categories under the Income Tax Act of 1961:

  • Earnings from Salary
  • Income from a home investment
  • Profit from Business Income
  • Investment and capital asset income
  • Revenue from unrelated sources

How Is Income Tax Calculated Under the Salary Head?

A straightforward procedure for figuring out income tax is as follows:

Basic Salary, in addition with HRA, Special Allowance, Transport Allowance, and Any Other Allowances is considered as a Gross Income from Salary.

The Gross income subtracted by the Deductions and Professional Tax (if any), equals the Net Income of an individual. To accurately calculate the Tax payable, all investments must be disclosed at the beginning of the assessment year.

To accurately calculate the Tax payable, all investments must be disclosed at the beginning of the assessment year. Understanding taxes, deductions, and returns is critical for establishing a sound financial foundation.

The Smarter Way to Do Taxes With an Income Tax Calculator

ConfluxHR’s Automatic Employee Tax Calculator is revolutionizing how businesses manage their taxes. Organizations used to rely on manual methods like spreadsheets, which were prone to errors and inefficiencies.

Organizations may now manage their taxes more efficiently and precisely thanks to the advent of ConfluxHR’s automatic tax calculator. Employee taxes are calculated using information such as pay, exemptions, and deductions from the SaaS-based program.

It computes employee taxes automatically based on the most current tax rules. The program also automatically updates as tax regulations change, so firms don’t have to worry about manual adjustments.

Automatic employee tax calculation also assists firms in remaining tax-compliant. Manual techniques make it simple to overlook essential tax rate modifications, resulting in noncompliance with tax rules.

This risk is eliminated by the automatic tax calculator, which allows HR to update the program with the most recent tax slabs and aids in seamless tax computations. This enables businesses to avoid costly penalties and fines for noncompliance.

Furthermore, the automatic employee tax calculator simplifies the tax computation process, saving businesses time and money.

Instead of having to calculate taxes for each employee manually, the software performs it for you. This assists organizations in becoming more productive and efficient.

Additionally, the automatic employee tax calculation gives complete results and insights. This enables businesses to quickly manage and analyze their tax bills, which can aid in budgeting and forecasting.


Finally, ConfluxHR‘s automatic employee tax calculator is a game changer for businesses wishing to manage their taxes swiftly and accurately.

Organizations may now handle their taxes simply because of its automatic calculations, compliance with tax rules, time-saving tools, and detailed reports.


Digital TDS Calculator: The Way To Go for Startups and SMEs

Owning a business has its own set of difficulties. One of the most significant is income tax calculation and reporting. In this blog, we will look at why a Digital TDS calculator is the way of the future for corporate tax calculations.

Calculating taxes on staff income is as simple as using ConfluxHR’s automated income tax calculator. However, it is critical to understand the fundamentals of how employees are taxed in India. Let’s start with the fundamentals of corporate taxation.

India’s Taxation Rules for Employees

The Indian tax system can be complex, but the following information will provide a general overview of the key aspects that are relevant to employees.

Income Tax

In India, income tax is levied on an individual’s total income, which includes salaries, pensions, rent, and any other taxable income. The income tax rates beyond the financial year 2023 are as follows:

  • Rs 0 to Rs 3 lakh – 0% tax rate.
  • Rs 3 lakh to 6 lakh – 5%
  • Rs 6 lakh to 9 lakh – 10%
  • Rs 9 lakh to Rs 12 lakh – 15%
  • Rs 12 lakh to Rs 15 lakh – 20%
  • Above Rs 15 lakh – 30%

It is important to note that these rates are for individual taxpayers and may differ for different types of tax payers such as senior citizens and women taxpayers.

TDS (Tax Deducted at Source)

TDS is a tax that is deducted at the source of income, meaning it is deducted from an individual’s salary before it is credited to their bank account. Employers are required to deduct TDS from their employees’ salaries if their annual income exceeds the tax-free limit of INR 2,50,000.

Other Taxes

In addition to income tax, employees in India may also have to pay other taxes, such as:

Professional Tax: This is a state-level tax that is deducted from an employee’s salary and is payable by all individuals who are engaged in a profession or trade.

Provident Fund Tax: This is a tax on the contribution made to an employee’s provident fund account. The current tax rate is 12% of the contribution made.

With the ever-changing environment of tax laws and regulations, ensuring a fool-proof method of computing taxes is becoming increasingly important. Digital TDS calculator will be the future of employee tax calculation in 2023, offering various advantages over old techniques.

The Benefits of Using Digital TDS Calculators

Gone are the days when you had to submit your employee taxes separately each time. It was a complicated and time-consuming process that required documentation every time. On top of that, you had to work extra hard to keep your tax returns accurate.

ConfluxHR’s automated TDS calculator can help businesses simplify and expedite their TDS management processes while ensuring compliance with TDS requirements.

With the Digital TDS calculator becoming more popular, here are some important advantages of a income tax calculator to consider:

  • Accurate and up-to-date calculations
  • Time-saving
  • Ease of use and accessibility
  • Integration with other financial software

Experience The Future With Digital TDS Calculator By ConfluxHR

Traditional techniques of tax calculation are becoming obsolete as the world gets more computerized. Because of their ease of use, precision, and speed, digital calculators are currently the favored method for many enterprises.

These Digital TDS calculators are also gaining popularity and integration with existing accounting software, such as employee tax planning and compliance management. Finally, computerized calculators are the way of the future for corporate tax calculation.

They provide a variety of advantages, including precision, speed, ease of use, efficiency, adaptability, and cost savings.

The Way Forward

Once you start utilizing ConfluxHR’s Digital TDS Calculator, you will never go back to traditional tax computation and advanced tax calculation methods. You can calculate error-free taxes for each individual in the organization, remotely or in person.