© Tally Solutions Pvt. Ltd. All Rights Reserved

Tally.ERP 9 Series A Release 3.0

Income Tax

© Tally Solutions Pvt. Ltd. All Rights Reserved 2

Agenda

• Enabling Income Tax• Configuring Employee Masters

• Creating/Altering IT Pay Head

• Income Tax Master Configuration• Income Tax Reports

© Tally Solutions Pvt. Ltd. All Rights Reserved 3

Enabling Income Tax

• Gateway of Tally > F11: Features > Statutory & Taxation

Enable Payroll Statutory &

Specify Details

Provide Income Tax

Details

© Tally Solutions Pvt. Ltd. All Rights Reserved 4

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 5

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 6

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.

© Tally Solutions Pvt. Ltd. All Rights Reserved 7

Income Tax Master Configuration

• Pay Head Configuration• Declarations• Override Exemption Value • Override Tax Value• Tax Configuration• Previous Employer Details

© Tally Solutions Pvt. Ltd. All Rights Reserved 8

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 9

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.)

© Tally Solutions Pvt. Ltd. All Rights Reserved 10

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 11

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 12

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 13

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 14

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 15

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 16

Processing Payroll

• Gateway of Tally > Payroll Vouchers

Press Alt+A for Payroll Auto Fill

Income Tax amount Deducted

© Tally Solutions Pvt. Ltd. All Rights Reserved 17

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 18

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

© Tally Solutions Pvt. Ltd. All Rights Reserved 19

Payroll Reports

• Gateway of Tally > Display > Payroll Reports > Statutory Reports > Income Tax

© Tally Solutions Pvt. Ltd. All Rights Reserved 20

Income Tax

Thank You

For more information visitwww.tallysolutions.com