Category: evetan – Payroll Application

Tax Proposals Applicable for FY 15-16

General Tax Payers Proposed Tax Rates
Up to Rs 2,50,000 NIL
Rs 2,50,001 to Rs 5,00,000 10 per cent
Rs 5,00,001 to Rs 10,00,000 25,000 + 20 per cent
Rs 10,00,000 and above 1,25,000 + 30 per cent
For Senior Citizens of 60 years But less than 80 years Proposed Tax Rates
Up to Rs 3,00,000 NIL
Rs 3,00,000 to Rs 5,00,000 10 per cent
Rs 5,00,001 to Rs 10,00,000 20,000 + 20 per cent
Rs 10,00,000 and above 1,20,000 + 30 per cent
Very Senior Citizens of 80 Years and Above Proposed Tax Rates
Up to Rs 5,00,000 NIL
Rs 5,00,000 to Rs 10,00,000 20 per cent
Rs 10,00,000 and above 1,00,000 + 30 per cent

 

  • Surcharge of 12% of tax on income exceeding Rs. 1 Crore.
  • 3% education cess remains
  • Section 80D tax deduction amount increased from Rs. 15,000 to Rs. 25,000. Plus an additional Rs 30,000 if paying for dependent parents who are senior citizens.
    • For senior citizens limit increased to from Rs. 20,000 to Rs. 30,000
    • For very senior citizens (80 years or more) – who are not covered by health insurance, medical expenditure upto Rs. 30,000 is tax deductible
    • Deduction limit of Rs. 60,000 towards expenditure on account of specified diseases of serious nature to be enhanced to Rs. 80,000 for very senior citizens
  • Section 80U and Section 80DD
    • Additional deduction of Rs. 25,000 will be allowed for differently abled persons under section 80DD and 80U
  • Deduction on account of contribution to a Pension fund and New Pension Scheme enhanced from Rs. 1 lac to Rs. 1.5 lacs
  • 80CCD – additional deduction of Rs. 50,000 for contribution to New Pension Scheme
  • 80C – Investments under Sukanya samriddhi scheme is already eligible for deduction under 80C. Now even interest payments will be exempt. (Sukanya Samriddhi scheme to be included in 80 C Sub Sections)
  • Conveyance allowance or transport allowance – amount eligible for deduction increased to 1600 per month from 800 per month
  • Section 80CCG Rajiv Gandhi Equity Scheme – For first time investors in listed shares and Mutual funds. Eligible Benefit available for 3 consecutive years
  • Tax rebate of Rs 2,000 for all whose total income is upto Rs. 5 lacs…Section 87a continues

Summary

1 Deduction under Sec 80C Rs.1,50,000
2 Deduction under Sec 80CCD Rs.50,000
3 Deduction on account of interest for home loans (self occupied property) – Section 24 Rs.2,00,000
4 Deduction under Section 80D on health insurance premium Rs. 25,000
5 Exemption on Transport Allowance Rs. 19,200
6 Exemption on Medical Allowance Rs. 15,000
7 HRA Benefit Applicable as before
8 LTA Benefit Applicable as before
9 Reimbursements for expenses under Section 10(14) applicable

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In Case of General Assesses:

Income Bracket Rate
0 to Rs. 1,80,000 0   %
Rs. 1,80,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

In Case of Women Assesses:

Income Bracket Rate
0 to Rs. 1,90,000 0   %
Rs. 1,90,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

In Case of Senior Citizens (> 60 Years but less than 80 Years):

Income Bracket Rate
0 to Rs. 2,50,000 0   %
Rs. 2,50,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

In Case of Very Senior Citizens (80 Years and above):

Income Bracket Rate
0 to Rs. 5,00,000 0   %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

eVetan is a simple, easy to use, self-service and completely online payroll processing platform; that also helps you generate all reports required for employee related statutory compliances.

Before we begin to understand how you can operate eVetan, let us understand what it does for your business:

1)        Setup all your employee records; their personal & professional information, tax declarations, salary summary, leaves, advances & loans details.

2)        With eVetan; you can process accurate salaries for your employees and also deduct sums whether Professional Tax, Income Tax, advances, loans etc.; to arrive at the monthly net pay.

3)        With eVetan; you can give online access to your employees through the online ESS (employee self service). Employees can login to check their pay slips, declare their investments for tax purposes and also view other summaries such as leaves, advances and loans history.

FAQs

1)      How do I start using eVetan for processing payroll?

To start using eVetan; you will have to first register yourself as a business by accessing the following URL:

http://www.evetan.com/online-payroll-software-system-india/sign-up.php

When you register, you will receive an automated email on your email address which will ask you to click on a link. On clicking this link; we verify your email address and also send you the password for your eVetan account on your mobile phone.

To login to your eVetan account, you will need to access the following URL:

http://www.evetan.com/userauth/login.php

2)      While registering, what do I need to register as – Business, Service Provider or Reseller?

If you want to use eVetan for your own company’s payroll needs; you will have to register as a Business.

Service Provider registration is for businesses/individuals that wish to use our online platform to offer payroll services to their clients.

Resellers are businesses/individuals who wish to become our authorized partners. These entities are typically software distributors who take our product to the market. With a reseller login, entities can allocate credits to their clients.

3)      Tell me the process flow of setting up data on eVetan and processing salaries on a monthly basis?

Once you have registered with us and you receive a username and password for your online eVetan account; you have access to all features of eVetan. As soon as you login; the system takes you to your home page. Here you can create as many companies as you want by clicking on “Add a new company”. With this you have created the database which will records all your company information for processing payroll.

Setting up data on eVetan is easy and a step by step process. The entire setup process is divided into 3 categories

a)      Company Details – Please enter the information asked by the system. The most important sub category here is “Policy Information’ where you need to enter Policy rules for the company whose payroll you wish to process.

b)      Salary Heads – This section within Setup lets you define your monthly allowances, annual allowances, your deductions and various other heads as per the needs of the organization. You can create as many heads as you want.

c)      Employees – a simple click through process will guide you in setting up employee records here.

4)      Once I have finished the setup process, what is the next step?

Once you have finished setting up your company, salary heads and employee details; you are ready to start processing salaries for the first month.

To do this, you need to go to the “Pay” page from within the “Company” home page or access “Process Payroll” from your Home Page.

Payroll processing is divided into 2 steps –

a)      Process Pay – in this section; you can enter the number of days that the employee was present in a month and overtime hours (if applicable). Additionally, you have an option to enter any ad-hoc allowances or deductions by clicking on Ad-hoc, that opens up a pop-up window for any last minute editing.

b)      Approve Pay – Approve Pay gives you the option to review the net pay details before you finalise the payroll for a particular employee for the month. In this stage, you have an option to make any last minute changes to the deductions by clicking on “Change” under deductions heading.

5)      How do I set Overtime feature on eVetan?

To be able to pay your employees Overtime; you will need to select this allowance head by accessing

Setup — >Salary Heads — > Heads for Monthly Earnings.

Once you have selected Overtime as an allowance head; you can set the Overtime rate by accessing

Setup — > Employees — > Pay

6)      How do I setup leaves on eVetan?

You can define leave heads for your company by accessing

Setup — >Salary Heads — > Heads for Leaves

Once you have defined leave heads; you can allocate leaves for a particular employee by accessing

Setup — > Employees — >Leaves

This section lets you define annual or monthly leaves for the particular employee. If you setup a type of leave as an Annual Leave; these will be valid for the entire year (eVetan considers the year as the financial year from April to March)

Similarly you can also define a leave as a Monthly Leave also. In this scenario; leaves are allocated every month.

You also get the option to define whether the leaves are forwarded or encashed in this sub-section.

7)      How do I ensure that eVetan does not deduct pay for absent days if such absenteeism was approved or leave was granted?

To ensure that eVetan does not deduct for absent days; you will have to sanction those number of days as approved leaves.

You can do this by accesing

Setup — > Employees — > Leaves — > Sanction Leave

(You will have to ensure that leaves that you sanction are less than the leave balance that the employee has in his account. Refer to FAQ 6 to understand how you can allocate leave balance to an employee)

Once you do this, you will see that the “Process Pay” page (when you are processing payroll for a particular month) carries the number of leaves sanctioned for a particular employee under the “Leaves” head.

8)      How does eVetan manage Advance and Loans?

When you give an advance or a loan to an employee; eVetan gives you the option to manage these payout and to collect them with or without interest over subsequent months.

You can setup Advance or Loan details for a particular employee by accessing

Setup — > Employee — > Pay — > Give an Advance/Give a Loan

9)      How does eVetan manage all statutory compliances related to employees?

With eVetan, you don’t have to worry about various statutory compliances that are applicable to your employees. eVetan has inbuilt formulae  setup that ensures that when you process payroll for your employees, the system calculates accurate PF, ESI, PT and TDS deduction.

To turn this auto feature on, you need to access

Setup — > Salary Heads — > Heads for Deductions

Here you can select the deductions that you wish to comply with; whether PF (Employee Provident Fund Contribution), ESI (Employee State Insurance Contribution, PT (Professional Tax) or TDS (income tax).

However, for some employees, where you do not wish to deduct any PF, ESI, PT or TDS contribution; you can choose to turn this feature off by accessing

Setup — > Employees — > Pay — > Deductions

10)      How do I give online logins to employees?

eVetan allows you to allocate online accounts called as Employee Self Service (ESS) to your employees.

This feature gives username and password details to employees which they can use to login to their own personal and secure payroll account; to view their paylips, and other details. With their online ESS, they can also declare investments for tax purposes and you need not collect physical investment forms from the employees.

To give online ESS

Setup — > Employees — > ESS

Tax Slabs

1) In Case of General Assesses:

Income Bracket Rate
0 to Rs. 1,60,000 0   %
Rs. 1,60,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

2) In Case of Women Assesses:

Income Bracket Rate
0 to Rs. 1,90,000 0   %
Rs. 1,90,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

3) In Case of Senior Citizens:

Income Bracket Rate
0 to Rs. 2,40,000 0   %
Rs. 2,40,001 to Rs. 5,00,000 10 %
Rs. 5,00,001 to Rs. 8,00,000 20 %
Above Rs. 8,00,000 30 %

* On final tax amount, a surcharge of 3 %
**No surcharge above 10 lacs.

Exemptions:

1) 80 C Limit Unchanged (Rs. 1,00,000)(refer to our earlier blog for all options under section 80 C (http://bit.ly/4px5hz)

2) 80 CCF – Additional Rs. 20,000 on investments towards approved Infrastructure bonds

3) 80CCD:

Contribution to NPS and returns on NPS tax free, but withdrawal still taxable

4) 80 D

Mediclaim Premium on the Health of Investment limit
a)     Self Spouse and Children Rs. 15,000
b)    Parent/Parents Rs. 15,000
c)     If Parent/ Parents Senior citizen Rs. 20,000

5) Section 80DD

Deduction under section 80DD

  • Exemption given for Expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid towards maintenance of such dependant.
  • Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1 Lakh in case of severe disability.

6) 80DDB

Deduction under section 80DDB

  • Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids.
  • Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens, maximum deduction allowed is Rs. 60,000/-

7) Section 80E

Deduction under section 80E

Deduction is allowed for repayment of interest component of Higher Education loan. All education after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government.

8 ) Section 80G

  • Contribution to exempt charities – 25/50/75/100% depending on the charity and as per approval
  • 100% exemption on donation to political parties

 

9) 80U

Deduction under section 80U

  • Deduction upto Rs. 50,000/- is allowed in case of Permanent Disability.
  • In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs. 75,000/-.

10) Section 24(1)(vi)

  • Housing loan interest.Maximum Investment Limit – Rs. 1,50,000 (for loans taken after 1 April 1999, for loans before that Maximum Investment Limit 30,000).

 

11) Superannuation – Any contribution made by a company to superannuation fund upto Rs. 1,00,000 tax free in the hands of the employee

12) Conveyance/Transport Allowance – Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 9,600 /- (No Supporting Bills required)

13) Medical Allowance – Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /- (Supporting Bills required)

14) HRA – Any House Rent Allowance given to an employee is tax free upto the minimum value of the following conditions (subject to – when an employee can produce rent paid receipts from landlord for the period and if the employee has not availed of tax exemptions for home loan interest / principal repayment):

a) 50% of Annual Basic (40% of Annual Basic in case of non-metros)

b) Actual HRA received

c) Rent Paid – (10% of Annual Basic)

15) Professional Tax – Any Professional Tax deducted from an employee’s salary can be reduced from the annual salary income to arrive at taxable salary

16) Provident Fund – Provident Fund contributions (under section 80 C and subject to an overall investment limit of Rs. 1,00,000 ) deducted from an employee’s salary are tax exempt.

Team eVetan

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Why eVetan?

Friends, family, ex-colleagues wonder !!!!

Why a venture the concept of which would put the vast majority to sleep…. Considering the team that we have, the backgrounds, the intellect; why of all business ideas was eVetan conceptualized? Obviously, this isn’t a Google-kinds search play, neither an uber-cool consumer portal nor the next-gen social network.

Well eVetan serves a purpose, and it serves pretty well. It’s for the lacs and lacs of small businesses who want to incorporate a professional process in their organizations. Something that till now was only for the big boys; large businesses, which did not have to think twice before implementing an expensive payroll application.

The founding team has had experience of running startups prior to eVetan, and that’s when the concept of eVetan came about. We had the fortune of working with large MNCs and when we started our own entities, the idea was to implement the best that they have in terms of systems & processes into our own startups. Obviously that was not to be. So whether it was a finance control package or an HRMS or a stand alone payroll system; we realized that there was nothing for us. Everything that we wanted had an expensive upfront cost, prohibitive AMCs and features that were more than we ever needed.

eVetan.com is our endeavor to address this need gap. Offer the most reliable and professional industry benchmarked payroll application at prices that small & mid sized businesses can easily afford.

And yes, for our friends, family and ex-colleagues, we will be one of those internet plays that will go onto make money; what with more than 13 mio SMBs as our potential market.

This means we can continue to hire the best talents, offer the most exhaustive online features & quality service to our customers, generate scale & tech efficiencies to continually offer more value for money; and be the one point source of all knowledge related to Indian Payroll & Employee Regulations for SMBs.

Obviously, this isn’t a Google-kinds search play, neither an uber-cool consumer portal nor the next-gen social network…