Which regime is applicable if admin processes payroll for the month of April without carrying forward IT declarations?

There are currently two income tax regimes in India: the old tax regime and the new tax regime. Under the old tax regime, individuals are allowed to claim various deductions and exemptions available under the Income Tax Act. The new tax regime, introduced in the Union Budget 2020, offers lower tax rates but eliminates most deductions and exemptions.

If the admin processes payroll for April month without carrying forward the IT declarations,  the new regime is applicable by default.

To carry forward the IT declaration, the admin must perform the following actions:

1. From the greytHR Admin login, navigate to the Settings icon> Sys Admin Backroom > Income Tax Utils > IT Carry Forward. The IT Declaration Carry Forward page opens.
2. On the IT Declaration Carry Forward page, select any or all of the following options: Chapter 6, Rent Paid, and Other Income.
3. Select All Employees or Selected Employees as per your requirements.
4. Click Carry Forward to carry forward the IT declaration of selected or all employees to the current financial year.

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