New vs old tax regime: what employees see in My pay

Before you start

• The employee's company is enrolled in TDS under Payroll › Statutory. Until it is, the tax card doesn't appear.
• In the TDS enrolment, Regime until the person chooses sets who is taxed under which regime before they pick. The law defaults to the new regime.

Steps

1. 1

   Step 1: Open My pay

   The employee opens My pay. The Income tax card for the year says how their tax is projected from their salary and deducted in equal parts each month.

2. 2

   Step 2: Compare the two regimes

   A table puts the regimes side by side on the person's own figures: projected gross, exemptions, the standard deduction, professional tax, personal deductions, taxable income, tax for the year, what has been deducted so far and this month's deduction. The regime in use is marked chosen.

   The card doesn't recommend one: the person reads both columns and decides.

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3. 3

   Step 3: Choose a regime

   In Regime, each option shows the tax it means a month. Choosing one and saving is enough for payroll to use it from the next run.

4. 4

   Step 4: Declare deductions and attach proofs

   Under the old regime, the person enters what it lets them deduct, such as rent paid a month for HRA, investments and health insurance, and uses Attach proof or Link proof for each. A person who joined this year can add what a previous employer paid them.

   Save draft keeps it to finish later; Submit for the year sends it to HR.

5. 5

   Step 5: HR verifies or returns it

   HR opens the person's profile, Compensation tab, reads the declaration and its proofs, and chooses Verify, or Return with a note saying what needs changing.

   A returned declaration's deductions are left out of the tax until the person resubmits. Once verified, the person can't change it themselves.

Demo workspace · fictional clinic group

What to check

• The card's status reads Draft, Submitted · awaiting verification, Verified or Returned — see the note.
• This month's deduction on the card matches the TDS line on the next payslip.
• The tax rule's version shows on the card; the rule versions below say whether it is still marked for review.

Related guides

• Run your first payroll in India, and fix a "would be refused" run →
• Set up CTC structures and gratuity inside CTC →
• Generate and upload your PF ECR, ESI and PT returns →