How to Create Gratuity Earning Pay Heads in Tally Prime?

Step: GOT > Create > Pay Heads > Enter

Ø After reaching by follow above step, fill all details to create Gratuity Pay Heads like,

· Name–Enter the name of Earning Pay Heads. like I Enter “Gratuity Expense”

· Pay head type – In this section different type of Pay heads are listed. Select “Gratuity”

from list to create Gratuity Pay heads.

Ø
After Selection of Gratuity Pay heads a new window appear in front of you like that screenshot:

Ø This is Gratuity calculation screen fill this screen by this way following screenshot:

Ø After filling it Press enter or Ctrl+A to save

· Under – Select “Provision” because Gratuity is Provision & Current Liabilities for Employer.

· Set/Alter Income tax details – Set to this option “No” Because Gratuity amount is exempted in Income tax.

· Rounding Method – Select any rounding method to round off Decimal portion of

Gratuity amount. Like I select “Normal Rounding”.

· Limit – Type Limit amount of rounding to round off according to limit. Like I type “1”.

Ø Fill all Above details in Pay heads screen to create Gratuity Pay heads like following screenshot:

· Press Enter or Ctrl+A to save this screen.

a) Variable Pay Earning Pay Heads