Configuring Tax Details (Payroll) in Tally ERP 9

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You can use the Tax Configuration screen to make all the necessary configuration in the following areas:.

  • Salary as per provisions contained in Sec 17(1)

  • Details of Perquisites

  • Details of Profits shared in lieu of salary

  • Details of Allowances exempted U/s 10

  • Deductions U/s 16

  • Other Income Declared by Employees

  • Deductions Under Chapter VI-A

  • Details of Relief’s granted

  • Tax Deduction details

To view the Tax Configuration screen

  • Go to Gateway of Tally > Payroll Info. > Income Tax Details > Tax Configurations

Tax Configurations

You can drill down into each component, and make the required changes.

Salary as per provisions contained in Sec 17(1)

To define the components for Salary as per provisions contained in Sec 17(1)

  1. Select  Salary as per Provisions contained in Sec 17(1), and press Enter.

Salary as per Provisions contained in Sec 17(1)

Press Enter on Define Salary.

Payhead configuration

You can configure the pay heads and ledgers to select the appropriate Income Tax Component, Tax Calculation Basis and Deduct TDS Across Period(s) as explained in the Pay Head Configuration screen.

Details of Perquisites

To enter the Perquisite details

  1. Select Value of Perquisites U/s 17(2) (as per Form 12BA) in Tax Configuration screen, and press Enter

Value of Perquisites Us 17(2) (as per Form 12BA)

  1. Select Single Employee or Multi Employee to define perquisite details for a single employee or all employees respectively.

Single Employee

  1. Select Single Employee from above screen, and press Enter.

  2. Select an employee from the List of Employees, and press Enter.

  3. In the Perquisites screen

  • Select the required allowances in the Nature of Perquisites field.

  • Specify the date from when the perquisites are applicable, in Effective From field.

  • Enter the perquisite amount in the Value of Perquisites Computed Value field.

  • Specify the Amount If Any Recovered From the Employee. If nothing is recovered, leave this field empty.

  • The Amount of Perquisite Chargeable to Tax is displayed, by default.

  • Specify the  Amount on which Tax is Paid by Employer.

Perquisites

  1. Press Enter to save

Multi Employee

  1. Select Multi Employee from Value of Perquisites u/s 17 (as per Form 12BA) sub screen, and press Enter.

  2. Select the required expenses from the perquisites list, and follow the same process as explained above.

Details of Profits in lieu of Salary

To enter the details of profits in lieu of salary

  1. Bring cursor, on  Profits in lieu of Salary u/s 17(3) (as per Form 12BA) in Tax Configuration screen, and press Enter.

Profits in lieu of Salary us 17(3) (as per Form 12BA)

  1. Select the required employee or All Employees.

  2. In Effective From field, specify the date from when the Profits in Lieu of Salary is applicable.

  3. In Amount Chargeable To Tax, specify the value which is paid to the employee as profit on which tax has be paid by the employee.

Amount Chargeable To Tax

  1. Press Enter to save

Details of Allowances U/s 10

To enter the details of allowances u/s 10

  1. Select the required allowance under Allowances U/s 10 in Tax Configuration screen, and press Enter

House rent allowances

  1. Drill down on Define Values  to enter the declaration details for selected allowance, as explained in Declarations menu.

  2. Drill down on Masters  to configure pay heads for the required income tax component, as explained in the Pay Head Configuration menu.

Deductions U/s 16

To enter the details of Deductions U/s 16

  1. Select Entertainment Allowance or Professional Tax under Allowances U/s 10 in Tax Configuration screen, and press Enter.

Professional tax on employement

  1. Press Enter to configure the pay head/ledger for the selected allowance or tax. This is similar to Pay Head Configurations discussed earlier.

Other Income Declared by Employees

To enter the details of Other Income Declared by Employees

  1. Select either Other Income (House Property / Other Sources) under Other Income declared by Employee in Tax Configuration screen, and press Enter

  2. Select the required employee from the List of Employees.

  3. Select the Particulars of Income Other than SalaryIncome from House Property from the list.

income Other than Salary - Income from House Property

  1. Specify the Effective From date.

  2. Specify the Details of Income from House Property. Based on the details provided the income from house property is calculated.

Income from House Property

Follow a similar process for the other incomes that are applicable.

other incomes that are applicable

  1. Press Enter to  save.

Deductions Under Chapter VI-A

To enter the details of Deductions under Chapter VI-A

1. Investments

  1. Select either Investments (80C and 80CCF) under Deductions under Chapter VI-A in Tax Configuration screen, and press Enter.

Investments (80C and 80CCF)

  1. To add investment declarations for all employees, select Multi Employee Single Component and follow the process explained in Investments – Multi Employee Single Component.

  2. To add investment declarations employees one by one, select Single Employee Multi Component, and follow the process explained in Investments – Single Employee Multi Component.

2. Other Deductions

  1. Select either Others (80D, 80DD and 80E etc.)  under Deductions under Chapter VI-A in Tax Configuration screen, and press Enter.

Others (80D, 80DD and 80E etc.)

  1. To add Others declaration for all employees, select Multi Employee Single Component, and follow the process explained in Investments – Multi Employee Single Component.

  2. To add Others declaration for employees one by one, select Single Employee Multi Component, and follow the process explained in Investments – Single Employee Multi Component.

Details of Relief’s granted

To enter the Relief Details

  1. Select  Relief (U/s 89, 90 & 91) in Tax Configuration screen, and press Enter.

  2. Select the required employee from the List of Employees, and press Enter.

  3. Select the required Section from Relief list under the Particulars of Relief.

  4. Enter the start date in the Effective From field.

  5. Specify the relief amount in the Annual Amount field.

Relief details

  1. Press Enter to save.

Tax Deduction Details

To enter the Tax Deduction Details

1. Advanced Tax Declared by Employee

  1. Select Advanced Tax Declared by Employee in Tax Configuration screen, and press Enter

  2. Select the required employee, and press Enter.

  3. Specify the details of the advance tax paid.

Advanced Tax Declared by Employee

  1. Press Enter to save

2.Tax Deducted by Previous Employer

  1. Bring cursor, on Tax Deducted by Previous Employer in Tax Configuration screen, and press Enter.

  2. Select the required employee, and press Enter.

  3. Specify the details of the Tax Deducted by Previous Employer.

Tax Deducted by Previous Employer

  1. Press Enter to save.

3. Tax Deducted Other than Salary

  1. Select Tax Deducted Other than Salary in Tax Configuration screen, and press Enter

  2. Select the required employee, and press Enter

  3. Specify the details of deductor, as shown below.

Tax Deducted Other than Salary

  1. Press Enter to save

4. Self Assessment Tax Declared by Employee

  1. Bring cursor, on Self Assessment Tax Declared by Employee in Tax Configuration screen, and press Enter.

  2. Select the required employee, and press Enter.

Self Assessment Tax Declared by Employee

Press Enter to save.

 

 

 

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