To create a Flat Rate based Pay Head (e.g. Conveyance which is does not depend on Attendance),
Go to Gateway of Tally > Payroll Info. > Pay Heads > Create
Enter Pay Head name in the Name field.
Select Earnings for Employees as the Pay Head Type from the list of Pay Head Type.
Select Income Type for the Pay Head.
There are two Income Types: Fixed and Variable
Pay Heads categorised under the Income Type - Fixed, form a part of the employee’s Total Gross Salary. For example: Basic Pay
Pay Heads categorised under the Income Type - Variable, form a part of the employee’s Total Earnings only. For example: Overtime Wages
Select Indirect Expenses from the List of Groups in the Under field.
By default, Affect Net Salary is set to Yes. Type No, if you do not want this component to be included in the Pay Slip.
By default, the Pay Head component name entered in the Name field will appear in the Pay Slip, if you want to change the default pay head component name then type required name in Name to appear in Payslip field.
By default, Use for Gratuity is set to No. Set this to Yes, if you want this Pay Head to be considered for Gratuity calculation.
In the Income Tax Details screen,
Select the required Tax component in the Income Tax Component field (Transport Allowance)
In Tax Calculation Basis select On Projection if the Tax has computation has to be spread across the remaining period or else select On Actual Value
Deduct TDS across Period(s) will be set to Yes for Tax Calculation Basis as On Projected Value. It can be set to Yes or No for On Actual Value.
Select the required method of calculation from the List of Calculation in the Calculation Type field.
Select the required calculation period from the List of Calculation Periods.
In the Calculation Period field select the required calculation period from the List of Calculation Periods.
Select the required Rounding off method from the Rounding Methods list and enter the required rounding limit in the Limit field.
Press Enter to accept.
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