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Tally.ERP 9 Series A Release 3.0
Income Tax
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Agenda
• Enabling Income Tax• Configuring Employee Masters
• Creating/Altering IT Pay Head
• Income Tax Master Configuration• Income Tax Reports
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Enabling Income Tax
• Gateway of Tally > F11: Features > Statutory & Taxation
Enable Payroll Statutory &
Specify Details
Provide Income Tax
Details
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Income Tax Computation
The approximate Income Tax Computation can be viewed immediately after enabling the Payroll
Statutory Feature, without any further configurations.
Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax > Computation
Tally.ERP 9 Identifies,•All earning components are considered as fully taxable•PF and PT are considered for Deduction
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Configuring Employee Masters
• 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
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Create TDS Pay Heads
• Gateway of Tally > Payroll Info. > Pay Heads > Create/Alter
Create/Alter Salary Details for all Employees for effect TDS Deduction.
Note: If TDS Pay Head already exists, you have to alter the same as shown.
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Income Tax Master Configuration
• Pay Head Configuration• Declarations• Override Exemption Value • Override Tax Value• Tax Configuration• Previous Employer Details
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Pay Head Configuration
• Gateway of Tally > Payroll Info > Income Tax Details > Pay Head ConfigurationBy default all pay heads are
grouped under Other Earnings/ Allowances(Fully
Taxable)
Select the Pay head and press enter to group the Income Tax Components
respectively
TDS gets computed based on Projected or On
Actuals whichever is selected
When method of calculation is On Projection then
Deduct TDS by default will be set Yes
When method of calculation is selected as On Actuals then
Deduct TDS across period can be manually set to Yes or No
Pay Head Configuration is Completed
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Declarations
• Exemptions U/s 10o Rent and Place of Accommodationo Children Education Allowanceo Children Hostel Expenditure Allowanceo Conveyance Allowanceo Leave Travel Allowance
• Deductions Under Chapter VIAo Investments (U/s 80C and 80CCF)o Others (U/s 80D, 80DD, 80E etc.)
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Declaration of Exemptions U/s 10
• Gateway of Tally > Payroll Info. > Income Tax Details > Declarations
Press Enter here, to declare Rent details
and Place of Accommodation re
Specify the Rent details, details of Actual rent Paid and Accommodation
Note: Actual rent Paid can be entered later also
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Deductions under Chapter VI-A
• Gateway of Tally > Payroll Info. > Income Tax Details > Declarations
• Press Alt+I for Multi Employee Single Component declaration
• Press Alt+N for Single Employee Multi Component declaration
Similarly, specify details for Other deductions
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Override Income Tax
• Go to Gateway of Tally > Payroll Info. > Income Tax Details
If the employer wants to override the earnings (Income) or Exemption value or even Tax value of the employee it can be done from the Override options
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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
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Allowance to the extent exempted U/s 10
• Gateway of Tally > Payroll Info. > Income Tax Details > Tax Configuration
Press Enter on the required Component
Press Enter to specify the Declaration
Press Enter here to Configure the Pay
Heads
Specify the required details and save
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Previous Employer Details
• Gateway of Tally > Payroll Info. > Income Tax Details
Previous Employer Income/Exemption and Tax
Deduction Details can be provided from the above masters
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Processing Payroll
• Gateway of Tally > Payroll Vouchers
Press Alt+A for Payroll Auto Fill
Income Tax amount Deducted
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Income Tax Payment
• Gateway of Tally > Accounting Vouchers > F5
Press Alt+A for Payroll Auto Fill
Specify the details for Challan printing
Press Enter to accept. Press Page Up and followed by Alt+P
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Payroll Income Tax Reports
• Computation• Salary Projection• Returns
o Form 16o Form 12BAo ITR 1
• Challan Reconciliation• Exception Reports
o PAN Not Availableo Other Recordso TDS Variance
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Payroll Reports
• Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax
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Income Tax
Thank You
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