Union Budget 2025-26: Key Payroll & Compliance Highlights

Union Budget 2025-26: Key Payroll & Compliance Highlights
The Union Budget 2025 brings significant relief to salaried employees by restructuring income tax slabs. Individuals earning up to ₹12 lakh per annum are now effectively exempt from income tax under the new tax regime. These changes require payroll teams to update salary structures and tax deductions to ensure compliance.

Key Budget Updates for Payroll & HR Compliance

1. Revised Tax Slabs: Higher Take-Home Pay
The revised tax structure aims to reduce the tax burden on employees while simplifying payroll tax calculations.

Impact on Payroll Compliance:
Increased take-home salary for employees earning up to ₹12 lakh.
Payroll teams must update salary structures, tax deductions, and TDS calculations.

2. TDS & Compliance Simplifications
The budget also introduces changes in TDS thresholds, impacting payroll compliance.

Key Changes:
Higher TDS limits for rent, interest, and dividend income.
TCS on education loans removed, easing payroll tax deductions.

CloudServ’s Role in Budget 2025 Compliance
With these new reforms in place, businesses must ensure compliance while optimizing payroll operations. CloudServ provides seamless payroll and compliance automation to help businesses navigate these updates.

✔ Automatic Payroll Tax Updates – No manual effort required. ✔ TDS & Compliance Automation – Real-time alignment with new tax thresholds. ✔ Enhanced Employee Benefits Processing – Integrating new social security provisions efficiently.

Stay Compliant with CloudServ
With tax and payroll regulations evolving, businesses must stay informed and compliant. CloudServ simplifies payroll processing, ensuring accuracy and efficiency.

📢 Have questions about payroll compliance? Our team is here to help!

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