How can admin automate TDS computations for employees with inoperative PANs, particularly for those in the 30% tax bracket?

For employees whose PAN is inoperative, admins can automate TDS computations from the Advanced Settings page. This automation ensures that the education cess is not applied to employees with inoperative PANs who fall under the 30% tax bracket. In such cases, a flat 20% TDS rate is applied to their taxable income.

To automate the TDS computation, the admin must perform the following actions:

1. From the greytHR Admin portal, navigate to the Settings icon > System Settings > Income Tax > Advanced Settings. The Advanced Settings page opens.

2. From the Financial Year dropdown list, select the relevant year.

3. From the table, select the CALCULATE_INVALID_PAN_TAX_AS_PER_CIRCULAR_ NO_01/2017 row, double-click the cell under the Value column, and enter Yes.

4. Select the ENABLE_PAN_VALIDATION row, double-click the cell under the Value column, and enter Yes.

5. Select the DO_NOT_CONSIDER_FIRST_SLAB_FPR_INVALID_PAN_HOLDER row, double-click the cell under the Value column, and enter No.

6. Click Save to update the changes. A success message appears.

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Related Links:

Video - To watch the video PAN updation, click here.

FAQs - To read more FAQs about PAN, click here.

Documentation - To read more about the PAN page, click here.

Product Update - To read about the product update, click here.