What is Income Tax ?

What is Income Tax ?Income Tax Income Tax

March 25, 2016 at 10 : 09 AM

Income tax is the annual charge levied on both earned income (wages, salaries, commission) and unearned income (dividends, interest, rents). In addition to financing a government's operations, progressive income taxation is designed to distribute wealth more evenly in a population, and to serve as automatic fiscal stabilizer to cushion the effects of economic cycles. Its two basic types are
1. Personal income tax, levied on incomes of individuals, households, partnerships, and sole-proprietorships
2. Corporation income tax, levied on profits (net earnings) of incorporated firms.

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What is Payroll Software?Payroll Payroll Software

November 22, 2019 at 05 : 45 AM

A Payroll Management Software is a software used to calculate salary of employees and calculate deductions such as PF, PT, ESIC and Income tax. Payroll software takes attendance of the month and calculate salary as per the defined values and formula set. Arrears, Bonus, Reimbursement, Advance deduction and other heads can be imported from excel file.
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Manage Salary Allowances with Intellipayroll SoftwareeReturns Manage Allowances

August 08, 2018 at 03 : 56 AM

What is an Allowance?

An allowance is the financial benefit given to the employee by the employer over and above the regular salary. These benefits are provided to cover expenses which may be incurred to facilitate the discharge of service.

The salary allowances can be bifurcated into three broad categories, taxable, non-taxable and partly taxable allowances.

A.Taxable Allowances

  • Dearness Allowance (DA)
Dearness Allowance (DA) is an allowance paid to employees as a cost of living adjustment allowance paid to the employees to cope with inflation. DA paid to employees is fully taxable with salary. 

  • Entertainment Allowance (EA)
Employees are allowed the lowest of the declared amount one-fifth of basic salary, actual amount received as allowance or Rs. 5,000. This is an allowance provided to employees to reimburse the expenses incurred on the hospitality of customers. However, Government employees can claim exemption in the manner provided in section 16 (ii). All other employees have to pay tax on it.

  • Overtime Allowance
Employers may provide an overtime allowance to employees working over and above the regular work hours. This is called overtime and any allowance received for this is fully taxable.

B.Partly Taxable Allowances

  • House Rent Allowance (HRA)
House rental allowance (HRA) is allowance paid for house rent .
HRA as per actuals received by the employee
  • Rent paid as per actuals less 10% of Basic Salary
  • In Metros i.e Delhi, Mumbai, Chennai or Kolkata, as much as 50% of basic salary or else 40% of it if the accommodation is in a non-metro.any amount of House Rent Allowance received after claiming such deduction is taxable.

  • Conveyance Allowance (CA)
Conveyance allowance, also called Transport Allowance.  That’s paid by the company towards cost of travel from home to work and back and is exempt from Income tax. Allowances are generally offered to employees on top of their basic salary component and may or may not be taxable as per the Income Tax Act.

  • Education Allowance
Employees are given a certain amount to educate their children in India. Any sum spent more than the provided limit of Rs. 100 per month per child for maximum two children, is taxable.

  • Medical Allowance
This is an allowance paid by the employer when the employee or any of his family members fall sick for the cost incurred on their treatment. If any such reimbursement exceeds Rs.15,000 per year; the same is taxable.

C. Non Taxable Allowances

Some of the allowances, usually paid to Government servants, judges and employees are not taxable.These are:
  • Allowances paid to Govt. servants abroad: When servants of Government of India are paid an allowance while serving abroad,such income is fully exempt from taxes.
  • Allowances to Judges of Supreme Court or High Court are not taxable.

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Statutory Compliances in india(PF,ESI,TDS )eReturns Statutory Compliances

May 10, 2018 at 05 : 19 AM

Statutory compliance is all about the organizations those must follow the standard Laws. Statutory Compliances such as PF, Factories Act, ESI Act, Minimum Wages Act, Bonus Act, Professional Tax Act, Shop and Establishment Act are required of Indian companies, organization etc.

Intellipayroll is 100% compliant with all government  laws.  Which  includes PF, ESIC, PT, TDS, LWF, Bonus and other modules. So now your HR can devote quality time to their core responsibilities and forget about complicated compliances hassle.

Timely and efficient statutory compliance process means:

• Avoid legal implications & penalties

• Access to regional and local expertise 

• Centralized error free data & documents that is readily available

• Professional support during inspections / audits 

• Assured ethical practices with strict timeline adherence 

• Achieve 100% compliance

1. Provident Fund - PF

PF is calculated on Basic (BA), DA, and arrear on BA and DA. The amount on which PF is calculated is called PF wages. All statutory forms and electronic challans are auto generated every month with the help of Intellipayroll.

2. Employee State Insurance - ESI

Employees' State Insurance (abbreviated as ESI) is a self-financing social security and health insurance scheme for Indian workers. ESI calculation is completely configurable in Intellipayroll.

3. Income Tax and TDS

Intellipayroll calculates TDS automatically. The TDS applicability slab is predefined which can also be changed. Concessions provided by government under various sections are also configured. One can save tax by declaring under these sections.

4. Professional Tax - PT

Professional Tax (PT) is state based tax allowed as a deduction from the gross income before computing the tax. All PT calculations are calculated through Intellipayroll and necessary forms are generated.

5. Labor Welfare Fund - LWF

Labour welfare fund is a statutory contribution managed by individual state authorities. Labour welfare refers to all the facilities provided to labor in order to improve their working conditions.

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IntelliPayroll ESS Portal FeaturesESS Portal Features of ESS

November 27, 2017 at 05 : 53 AM

1. Compatible with popular browsers and mobile devices
Employee can apply for his leave from anywhere and can upload supportive documents.
2. Interactive dashboard
Displays useful information like employee image, his information, list of the documents submitted/not submitted.
3. Payslip, TDS projection
Employee can generate important reports like pay slips, TDS Projection.
4. Password protected salary slips
As we know payslip is a very sensitive part of an employee’s salary and as per any organization’s rule, it needs to be confidential. To protect the confidentiality of the document, the HR can password protect the payslips.
5. Secure and confidential payroll data
Secure and confidential payroll data which ensures that the payroll data of the employees is not exposed.
6. Apply for leave, reimbursement, and investment declaration on the go
Our Employee Self Service (ESS) portal employee can apply for leave and check status of his leave.
Employees can claim various reimbursements including fuel, LTA, medical, phone. Admin can approve/decline these reimbursements.
Employees can submit their investment declaration during the start of the financial year and subsequently, with their proof details.
7. Dedicated support team
You will have a dedicated Prodigy Support Team that's built around you and your needs. It's the Team's responsibility to know and understand the problems faced by you and solve them immediately.
8. List of not submitted documents
Employee can view list of necessary documents which are to be submitted. He can submit those documents on a single click.
9. Loan calculations
Employee can calculate his third party loan premiums to get an idea of his deductions.

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Attendance Management SoftwareAttendance Attendance Management

May 01, 2016 at 10 : 39 PM

In IntelliPayroll, the attendance of employees is managed at ease. An Excel sheet containing sample format of attendance can be exported from the application itself which can be filled by admin or by branch heads and imported.

The leave types that are created by the user will be automatically added in the sample format being exported. The format will have the fields regarding attendance details such as Over time, Week offs and leaves taken. User can define the ratio of emoluments to be given on the attendance and over time. Weekly offs of each employee can be maintained separately. Once the details are added into the Excel file, the user just needs to import the file back into the application and within a fraction of a second, the software intelligently imports data from the Excel sheet and generates error if there are any discrepancies in attendance or leave data.

In online IntelliPayroll, the attendance of employees of various branches can be managed. The branch supervisor can import the attendance for employees of his branch and within no time, the attendance gets imported in the application. This version of web-based IntelliPayroll has all the features that are present in desktop version plus it can be managed from anywhere and at anytime.

In this manner, IntelliPayroll manages the attendance of employees without any hassle.

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