What are pre-tax and post-tax deductions in Zoho Payroll?

What are pre-tax and post-tax deductions in Zoho Payroll?


Pre-Tax DeductionsPost-Tax Deductions
DefinitionAmounts deducted before calculating income taxAmounts deducted after calculating income tax
Impact on IncomeReduces net taxable income and lowers income taxDoes not affect net taxable income
ExamplesNational Pension Scheme (NPS), Voluntary Provident Fund (VPF)Purchases made in the company grocery store or food court
RecurrenceDeductions occur regularly in each pay runOne-time deduction, doesn’t recur in subsequent pay runs