Declarations

As per the Income Tax Act, while computing the Taxable Income the following are deducted from the Gross Salary for the Employees.

The Employee can provide the Exemption and Deduction details to the Employer and these details can be entered in the system as Employee Declaration by following the process given below:

Go to Gateway of Tally > Payroll Info. > Income Tax Details > Declarations

You can select the required Exemption and Investments and enter the Employee Declarations details.

Declaring House Rent Allowance

Note: Metro should be selected for Delhi, Mumbai, Kolkata and Chennai. For all others cities, Non-Metro should be selected.

Similarly, the HRA details for single Employees can also entered.

Leave Travel Assistance

Declaring Transport Allowance

Note: Employee Status will be used for Transport Allowance exemption limit.

Declaring Children Education Allowance

Declaring Children Hostel Expenditure Allowance

Income Declared by Employee - Single Employee Multi Component

Under this head, you can define employee(s) declarations & proofs/eligible amount for the other incomes like House Property, other sources & Interest on housing Loan if self occupied.

Similarly, you can select the applicable other Income.

Income Declared by Employee - Multi Employees Single Component

Declaring Investments U/s 80C, 80CCF, 80CCG, etc. - Single Employee Multi Component

Declaring Investments U/s 80C, 80CCF, 80CCG, etc. - Multi Employees Single Component

Declaring Other Deductions under Chapter VI-A - Single Employee Multi Component

Note: In case of Mediclaim Insurance taken for the dependant parents in addition to self, the maximum Qualifying Amount is Rs. 40,000 [Self (if Senior Citizen) Rs.20000 + Parents (Senior Citizens) Rs. 20000).

Declaring Other Deduction under Chapter VI-A - Multi Employees Single Component