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.

Ø
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