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