{"id":4554,"date":"2026-05-29T22:06:50","date_gmt":"2026-05-29T22:06:50","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4554"},"modified":"2026-05-30T02:53:09","modified_gmt":"2026-05-30T02:53:09","slug":"income-tax-regime-zoho-payroll","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/income-tax-regime-zoho-payroll\/","title":{"rendered":"Income Tax Regime (Old vs New)"},"content":{"rendered":"<style>\n.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}\n.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}\n.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}\n.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}\n.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}\n.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}\n.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}\n<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">The Income Tax Regime in Zoho Payroll is the tax computation framework an employee selects for a financial year: the Old Regime (allowing exemptions like HRA, LTA, and deductions under 80C, 80D, 80CCD) or the New Regime (lower slab rates but no exemptions or most deductions except standard deduction of Rs 75,000 from FY 2024-25). Zoho Payroll applies the selected regime in TDS computation from the moment the employee declares their choice.<\/div>\n<div class=\"gt-section\">\n<h2>Old Regime vs New Regime Tax Slabs<\/h2>\n<p>Under the old regime, slabs are: up to Rs 2.5 lakh (nil), Rs 2.5-5 lakh (5%), Rs 5-10 lakh (20%), above Rs 10 lakh (30%). Under the new regime (FY 2024-25): up to Rs 3 lakh (nil), Rs 3-7 lakh (5%), Rs 7-10 lakh (10%), Rs 10-12 lakh (15%), Rs 12-15 lakh (20%), above Rs 15 lakh (30%). Section 87A rebate makes income up to Rs 7 lakh tax-free under the new regime.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Selecting and Switching Regimes in Zoho Payroll<\/h2>\n<p>Employees declare their preferred regime at the start of the financial year through the Zoho Payroll ESS portal. Salaried employees can switch regimes once per year at the time of filing their ITR. For TDS purposes, the regime declared in Zoho Payroll is used throughout the year. If an employee wants to change mid-year, they must update their declaration and Zoho Payroll will recompute TDS accordingly.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Default Regime in Zoho Payroll<\/h2>\n<p>From FY 2023-24, the new tax regime is the default for salaried employees. If no declaration is received, Zoho Payroll computes TDS under the new regime. Employees who benefit more from the old regime (due to large HRA, home loan interest, or 80C investments) should actively declare old regime early in the year to avoid higher TDS.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Example:<\/strong> An employee earning Rs 12 lakh annually declares the old regime and has HRA exemption Rs 1.2 lakh, 80C Rs 1.5 lakh, 80D Rs 25,000. Taxable income = Rs 9.05 lakh. Tax = Rs 1,02,500 (approx). Under the new regime, taxable income = Rs 11.25 lakh (standard deduction only), tax = Rs 1,12,500. Old regime saves Rs 10,000 here. Zoho Payroll computes both on request.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/tds-on-salary-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">TDS on Salary<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/investment-declaration-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Investment Declaration<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/form-16-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Form 16<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/hra-house-rent-allowance-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">HRA<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is the Income Tax Regime in Zoho Payroll?<\/strong><\/p>\n<p>The income tax regime in Zoho Payroll is the employee&#8217;s choice between the old regime (with exemptions and deductions) and the new regime (lower slab rates, minimal deductions). The selected regime determines how monthly TDS is computed. Employees declare their choice through the Zoho Payroll self-service portal.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>What is the default tax regime in Zoho Payroll?<\/strong><\/p>\n<p>From FY 2023-24, the new tax regime is the default in Zoho Payroll. If an employee does not declare a regime, Zoho Payroll computes TDS under the new regime. Employees who prefer the old regime must actively submit their declaration through the portal early in the financial year.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Income Tax Regime in Zoho Payroll refers to the employee&#8217;s choice between the old regime with exemptions and deductions, and the new regime with lower slab rates but no exemptions.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Income Tax Regime (Old vs New) | Zoho Payroll Glossary","seo_description":"The Income Tax Regime in Zoho Payroll refers to the employee's choice between the old regime with exemptions and deductions, and the new regime with lower","seo_keyword":"income tax regime (old vs new) zoho payroll","seo_faqs":"[{\"q\": \"What is the Income Tax Regime in Zoho Payroll?\", \"a\": \"The income tax regime in Zoho Payroll is the employee's choice between the old regime (with exemptions and deductions) and the new regime (lower slab rates, minimal deductions). The selected regime determines how monthly TDS is computed. Employees declare their choice through the Zoho Payroll self-service portal.\"}, {\"q\": \"What is the default tax regime in Zoho Payroll?\", \"a\": \"From FY 2023-24, the new tax regime is the default in Zoho Payroll. If an employee does not declare a regime, Zoho Payroll computes TDS under the new regime. Employees who prefer the old regime must actively submit their declaration through the portal early in the financial year.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1250],"class_list":["post-4554","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-payroll"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4554"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}