Type search words and press enter
GSTR-1 upload is now as easy as 1-2-3! Upload your returns on the GST portal right here from TallyPrime. Don't worry about opening the portal or doing any other manual activity.
https://help.tallysolutions.com/docs/te9rel51/Payroll/Employer_NPS_Contribution_Pay_Head.htm

Creating Employer's NPS Contribution Pay Head

Any contribution by the employer towards NPS will fall under the Tier I account of the scheme. Such employer's contribution towards NPS will be allowed to the employee under Section 80CCD (2) of the Income Tax Act, 1961, to the extent of 10% of Basic Pay and Dearness Allowance (DA).

To create Employer’s NPS Contribution Pay Head

  1. Go to Gateway of Tally > Payroll Info. > Pay Heads > Create

  2. Enter the name of the Pay Head in the Name field

  3. Select Employer’s Statutory Contributions as the Pay Head Type from the list of Pay Head Types

  4. Select National Pension Scheme (Tier - I) in the Statutory Pay Type field

  5. Select Indirect Expenses from the List of Groups in the Under field

  6. By default, Affect Net Salary is set to No. Type Yes, if you want this component to be included in the Pay Slip

  7. In the Calculation Type field, select the required type of calculation, User Defined Value, Flat Rate or As Computed Value. On selection of Calculation Type, the Calculation Period is pre-filled with Months by default

  8. Select Normal Rounding from the list of Rounding Methods and type 1 as the rounding Limit

  9. If the Calculation Type is set to As Computed Value, then

  10. In the Compute field, select On Specified Formula from the Computation On list. The Compute sub-screen appears.

  11. Select Basic Pay from the List of Pay Heads, in the Pay Head column.

  12. Select Add Pay Head to add other Pay Heads to be considered for NPS calculation.

  13. Select End of List to return to Pay Head Creation.

  1. In the Effective Date field, enter the date from when the NPS deduction will be effective.

  2. Select Percentage from the List of Slabs, in the Slab Type field.

  3. Enter the required percentage for NPS in the Value Basis field.

Note: The Calculation Type can be set to As Computed Value/Flat Rate/User Defined. If User Defined is selected as the Calculation Type, then while recording a payroll voucher, NPS Process has to be selected in the Process For field of the Payroll Auto Fill sub-screen.

  1. Press Enter to accept.

Mail this article