How to Create Professional 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 Professional Tax deduction Pay Heads like,

· Name–Enter the name of statutory deduction Pay Heads. like I Enter “Professional 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 “Professional Tax” from list to create Employee‘s Professional tax deduction Pay heads.

· Registration Number – Type Professional tax registration number of your company or Employer. Like I type “KA/PT/34567345”.

· Under – Select “Current Liabilities” because Professional tax deduction is Current Liabilities for Employer.

· Affect Net Salary – Set to this option “Yes” because Professional tax deduction Affect

net Salary.

· Name to be displayed in payslip – Type name “Professional Tax“ to print in Pay slip

· Calculation Type – Automatic set “As Computed Value”.

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

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

amount. Like I select “Normal Rounding”.

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

· Compute – Select “On Current Earning Total” Because we Calculate Professional Tax

basis on total earning current earning of Employee.

· Effective from – Type Date from which you apply Professional tax rate for employee in Tally prime. Like I type “1/Jan/2021”.

Ø After typing date, Fill Professional Tax slab rate which is apply in your state. Like I filling a slab rate which is apply in my state just this following table:

Amount Greater than

Amount Up To

Slab type

Value

0

5000

Value

0

5000

8000

Value

60

8000

10000

Value

100

10000

15000

Value

150

15000

Value

200

Ø Fill all Above details in Pay heads screen to create Professional tax Deduction Pay heads like following screenshot:

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

Part 4: Create Statutory Contribution of Employer Pay heads

Statutory Contribution Pay Heads – All amount Contributed by Employer to his employees as fund for them. Like EPS, PF, ESI, NPS contribution etc.

a. PF Statutory Contribution Pay Heads