Believe it or not, tax planning remains an area where HR strategists could craft a loyal employee-employer relationship. Tax planning could also enable individuals with additional savings, which in turn could be used to meet various financial goals.
Sayeed Anjum, Co-founder & CTO, greytHR explains, while tax planning is assumed as a core HR function, new-age CHROs have automated payroll systems that make tax planning look like a thing of the past. Moreover, tax planning is mostly relegated to crafting attractive offer letters for new-joinees or a plan that employees have to share during the start of a new fiscal year. But, despite the automation, HR heads in India have their hands full. First, when it comes to providing an understanding of new budget announcements and second, the investment documentation cycle during the January-March period of a financial year.
Salaried employees, mostly freshers, usually scrutinise their offer letter to understand the salary breakup, such as house-rent allowances, leave-travel encashment, tax slabs, and other benefits. But, knowing a few tax principles help employees and employers make rational decisions. Knowing the finances and asking appropriate questions is vital to avoiding unpleasant surprises.
