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
