Will your income tax outgo change under the new Labour Codes

As India moves toward implementing the Four Labour Codes, the new framework will directly affect taxable income, monthly TDS and payroll calculations. The revised wage definition and overtime rules will change how much of an employee’s earnings fall under the tax net. According to Preetha S, Partner at JSA Advocates & Solicitors, the new wage definition “demands a proactive review of existing salary structures for optimal compliance and cost efficiency,” but any change “will require employers to assess consent or notification requirements” before roll-out. She adds that granular implementation depends on detailed rules still awaited from the Centre and states. Read more