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Create Pay Heads and Define Income Tax Details (Payroll)

The salary components constituting an employee's pay structure are Pay Heads. A pay head may be a benefit or a deduction from the salary. The value of these pay heads could be fixed or variable for each payroll period.

For example, Basic Pay is a fixed pay component, whereas Variable Pay and Bonus are variable components.

A Pay Head Type is categorised as Earnings , Deductions or Reimbursements .

The default pay head types in Tally.ERP 9 are:

Earnings for Employees

o Attendance based Earnings Pay Head

o Computation based Earnings Pay Head

o Flat Rate based Earnings Pay Head

o Production based Earnings Pay Head

o User Defined Earnings Pay Head

Deductions from Employees

o Canteen Deduction Pay Head

o Loans and Advances Pay Head

Employees’ Statutory Deductions

o PF Deduction Pay Head

o ESI Deduction Pay Head

o Professional Tax Deduction Pay Head

o NPS Deduction Pay Head

o Income Tax Deduction Pay Head

Employer’s Statutory Contributions

o EPS Contribution Pay Head

o EPF Contribution Pay Head

o ESI Contribution Pay Head

o NPS Contribution Pay Head

Employer’s Other Charges

o PF Admin Charges Pay Head

o EDLI Contribution Pay Head

Bonus Pay Head

Gratuity Pay Head

Loans and Advances Pay Head

Reimbursements to Employees Pay Head

Income Tax Details

o Income Tax P ay Head Configuration

o Income Tax Declarations

o Override Income Tax Exemption Value

o Override Income Tax Value

o Income Tax Configuration

o Previous Employer Details for Income Tax

Note: For international customers, Employees' Statutory Deductions , Employer's Statutory Contribution and Employer's other Charges pay head types are not applicable.