Dear,
System is working fine refer below calculation employee is joined on 01.01.2014 it means up to march 2014 3 month income is consider for i tax calculation as per your payslip screen shot rs 50,000.00 per month his earning means for 3 month i.e. 150,000.00 and this is under thresh out of income tax limit so system is not deducting any income tax.
Regards
Balwant.
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