Pay Head Configuration

Pay Head Configuration screen allows the user to configure the Income Tax Components for all the existing Pay Heads. The Ledgers which are used for making the Payroll payments also can be configured for the respective Income Tax Component.

Go to Gateway of Tally > Payroll Info. > Income Tax Details > Pay Head Configuration

Those Pay Heads which are already configured for the Income Tax will be shown in bold. The Pay Heads which are not configured are shown in Italics.

Note: The EPF A/c No. 1 and Professional Tax are also configured internally.

On Projection: Will take the Pay Head/Ledger Value from Salary Details or from Voucher ( in case of User Defined pay head) and the same will get projected for remaining period.

 

On Actuals: Will take the Pay Head Value (latest) and the same will get projected for the remaining months also.

Similarly, all other Pay Heads can also be configured for Income Tax.

Button options in Pay Head Configuration screen

A: Add Ledger

Click on A: Add Ledger or press Alt+A to select and Configure any Ledger for Income Tax. The Ledger which are used for making payments to employees can be considered for Income Tax using this option.

Example, Conveyance can be paid as an expense also by the Employer using an accounting entry. To compute the Income Tax, it will be important for the Employer to configure Conveyance Ledger for Income Tax.

Once, the Ledger is configured for the Income Tax, it will appear in the Pay Head / Ledger Configuration screen  as shown:

T: Tax Config.

Click on T: Tax Config. or press Alt+T, to view the Tax Configuration screen.