How to Create Income Tax deduction Pay Heads in Tally Prime?

Step: GOT > Create > Pay Heads > Enter

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

· Name–Enter the name of statutory deduction Pay Heads. like I Enter “Income Tax”

· Pay head type – In this section different type of Pay heads are listed. Select “Employees’ Statutory Deductions” from list to create Statutory Deduction Pay heads.

· Statutory pay type – In this section different type of Employee Statutory Deduction are listed. Select “Income Tax” from list to create Employee‘s Income tax deduction Pay heads.

· Under – Select “Duties & Taxes” because Income Tax deduction is Tax for Employer.

· Affect Net Salary – Set to this option “Yes” because Income Tax deduction Affect net Salary.

· Name to be displayed in payslip – Leave auto set name “Income Tax“ to print in Pay slip

· Calculation Type – Automatic set “As Per Income Tax Slab”.

· Calculation Period –Select “Months” for Calculation of Income Tax as Month-wise.

· Rounding Method – Auto set as “Upward Rounding”

· Limit – Auto set limit as “1”.

·
Fill all Above details in Pay heads screen to create Income Tax Deduction Pay heads like following screenshot:

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

Professional Tax (PT) Statutory Deduction Pay Heads