How to Create Bonus Earning Pay Heads in Tally Prime?
Step: GOT > Create > Pay Heads > Enter
Ø After reaching by follow above step, fill all details to create Bonus Pay Heads like,
· Name–Enter the name of Earning Pay Heads. like I Enter “Bonus”
· Pay head type – In this section different type of Pay heads are listed. Select “Bonus”
from list to create Earning Pay heads.
· Income type – These are two type of Income gain by employee first fixed and second Variable.
§ Fixed – If your employee’s overtime is fixed in every month then use this income type. Like overtime of employee is fixed for a particular period.
§ Variable – If your employee’s Overtime is vary or changes in every month then use this income type
v I select “variable” from both of them income type because Bonus is variable.
· Under – Select Indirect Expense because Bonus is indirect expense for Employer.
· Affect Net Salary – Set to this option “Yes” because Bonus Affect net Salary.
· Name to be displayed in payslip – Left it by Default name “Bonus” to Print in Pay Slip.
· Use for Calculation of Gratuity – Set to this option “No” because Gratuity calculated
only on the basis of (Basic Salary + dearness allowance).
· Set/Alter Income tax details – Set to this option “Yes” for income tax deduction from employee’s Bonus.
Ø After income tax details set to “Yes” a new window appear in front of you.
Ø In this window select the appropriate option like,
§ Income tax Component – tax component already selected for Bonus Pay heads. Leave as it is.
§ Tax Calculation Basis – in this section two option are available :
1. On Projected Value – If Bonus of employee will not change according to months or Year then select this option.
2. On Actual Value – If Bonus of Employee will change according to months or year then select this option.
Ø I select “On Actual Value”
§ Deduct TDS across periods – Set to this option “Yes” because Bonus is taxable.
Fill details in Income tax details like following screenshot:
· Calculation Type – Select “As User Defined Value” from list for Bonus because it is decided Employer that how much he Paid Bonus Amount to Employee.
· Fill all Above details in Pay heads screen to create Bonus Earning Pay heads like following screenshot:
· Press Enter or Ctrl+A to save this screen.
Gratuity Earning Pay Heads