ERPNext HR
What is Employee Tax Exemption in ERPNext?
- Employee Tax Exemption in ERPNext
- Employee Tax Exemption in ERPNext collects investment declarations from employees to reduce TDS deducted from salary.
What is Tax Exemption?
Under Indian income tax law, employees can declare investments (PPF, LIC, ELSS, HRA, etc.) to reduce their taxable income and lower TDS on salary.
Declaration vs Proof
ERPNext supports two stages: Employee Tax Exemption Declaration (at year start) and Employee Tax Exemption Proof Submission (at year end with actual documents). TDS is recalculated at each stage.
Payroll Integration
Approved exemptions automatically reduce TDS in Salary Slips, ensuring employees are not over-taxed during the financial year.
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