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https://help.tallysolutions.com/docs/ts9rel54/ts9/installation_for_existing_user.htm

Installing Tally.Server 9 for an Existing User

Existing users may fall into one of the following categories:

Users who are using Tally.ERP 9 Series A Release 4.91 or lower

Users who are using Tally.ERP 9 Series A Release 5.0

Users who are using Tally.ERP 9 Series A Release 4.91 or lower, have to Upgrade to Tally.ERP 9 Series A Release 5.0 before installing Tally.Server 9 Series A Release 5.0 for smooth operations.

Tally.Server 9 can be installed either in the same folder where Tally.ERP 9 is installed, or in a different folder (same machine).

When Tally.Server 9 is installed in the same folder where Tally.ERP 9 is installed, then the Tally Gateway Server used to service Tally.ERP 9 Gold edition is used to service the Tally.Server 9.