Gateway of Tally > F11: Features > Statutory & Taxation Enable Payroll Statutory & Specify Details
Income Tax Computation
Tally.ERP 9 Identifies, All earning components are considered as fully taxable GatewayThe ofPF Tally > Payroll Reports > Statutory and > PT Display are considered forTax Deduction approximate Income Computation can beReports • •
Income Tax > Computation viewed immediately after enabling the Payroll Statutory Feature, without any further configurations.
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Configuring Employee Masters
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Gateway of Tally > Payroll Info. > Employees > Alter
Income Tax slab will be applied based on Gender & Date of Birth (Senior Citizen)
Income Tax rate gets selected based on PAN availability & non availability
Create TDS Pay Heads
Create/Alter Salary Details for all Employees for effect TDS Deduction. •
Gateway of Head Tallyalready > Payroll Info. > alter PaytheHeads Note: If TDS Pay exists, you have to same as > shown. Create/Alter
Income Tax Master Configuration • • • • • •
Pay Head Configuration Declarations Override Exemption Value Override Tax Value Tax Configuration Previous Employer Details
Pay Head Configuration
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PayPayroll Head Configuration Gateway of Tally > Info > Income Tax is Completed By default> all Pay pay heads are Configuration Details Head
grouped under Other Earnings/ Allowances(Fully Taxable)
TDS gets computed based When method ofcalculation calculation When isis Selectmethod the Payofhead and on Projected or On Actuals selected as then Actuals On Projection then Deduct press enter toOn group the whichever isperiod selected can be Deduct across TDS byTDS default will be set Yes Income Tax Components manually set to Yes or No respectively
Declarations •
Exemptions U/s 10 o o o o o
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Rent and Place of Accommodation Children Education Allowance Children Hostel Expenditure Allowance Conveyance Allowance Leave Travel Allowance
Declaration of Exemptions U/s 10 Press Enter here, to declare Rent details and Place of Accommodation re •
Gateway of Tally > Payroll Info. > Income Tax Details > Specify Declarations the Rent details, details of Actual rent Paid and Accommodation Note: Actual rent Paid can be entered later also
Deductions under Chapter VI-A Single Component declaration Press Alt+I for Multi Employee •
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Press Alt+N for Single Employee Multi Component declaration
Gateway of Tally > Payroll Info. > Income Tax Similarly, specify details for Other deductions Details > Declarations
Override Income Tax
If the wantsoftoTally > Go employer to Gateway override the earnings (Income) Tax Details or Exemption value or even Tax value of the employee it can be done from the Override options
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Payroll Info. > Income
Tax Configuration • • • • • • •
Gross Salary Allowance to the extent exempt U/s 10 Deduction U/s 16 Other Income reported by Employee Deductions under Chapter VI-A Relief Tax Deduction Details
Press Enter to specify Allowance to the extent exempted U/s 10 the Declaration
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Gateway of Tally > Payroll Info. > Income Tax required details and save DetailsSpecify > Taxthe Configuration Press Enter on the required Component Press Enter here to Configure the Pay Heads
Previous Employer Details
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Gateway of Tally > Payroll Info. > Income Tax Details Previous Employer Income/Exemption and Tax Deduction Details can be provided from the above masters
Processing Payroll
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Gateway of Tally > Payroll Vouchers Income Tax amount Deducted
Press Alt+A for Payroll Auto Fill
Income Tax Payment
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Gateway of Tally > Accounting > F5 Specify the detailsVouchers for Challan printing Press Alt+A for Payroll Press Enter to accept. Press Page Auto Fill Up and followed by Alt+P
Payroll Income Tax Reports • • •
Computation Salary Projection Returns o o o
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Form 16 Form 12BA ITR 1
Challan Reconciliation Exception Reports o o o
PAN Not Available Other Records TDS Variance
Payroll Reports
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Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax