How to Create Conveyance Earning Pay Heads in Tally Prime?
Step: GOT > Create > Pay Heads > Enter
Ø After reaching by follow above step, fill all details to create Conveyance Pay Heads like,
· Name–Enter the name of Earning Pay Heads. like I Enter “Conveyance”
· Pay head type – In this section different type of Pay heads are listed. Select “Earnings for Employees” 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 conveyance is fixed in every month then use this income type. Like conveyance of employee is fixed for a particular period.
v Variable – – If your employee’s conveyance is vary or changes in every month then use this income type
v I select “Fixed” from both of them income type because Conveyance is fix.
· Under – Select Indirect Expense because conveyance is indirect expense for Employer.
· Affect Net Salary – Set to this option “Yes” because Conveyance Affect net Salary.
· Name to be displayed in payslip – Leave it by default name “Conveyance”.
· 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 Conveyance.
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 – Select the required tax component for your Pay
heads like I select “Transport Allowance” for Conveyance form list.
§ Tax Calculation Basis – in this section two option are available first
1. On Projected Value – If Conveyance of employee will not change according to months or Year then select this option.
2. On Actual Value – If Conveyance 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 Conveyance is
taxable.
Ø
Fill details in Income tax details like following screenshot:
· Calculation Type – Select “Flat rate” from list for Conveyance because it is decided by employer to how much paid conveyance amount as Flat value in One Months.
· Calculation Period –select “Months”. Because Conveyance Paid according to Month wise as a flat value.
· Rounding Method –select “Not Applicable”. Because its value is flat rated.
Ø
Fill all Above details in Pay heads screen to create Conveyance Earning Pay heads like following screenshot:
Ø Press Enter or Ctrl+A to save this screen.
Dearness Allowance (DA) Earning Pay Heads
