The reintroduction of standard deduction, new tax slab for health and education cess, changes in medical reimbursement and transport allowance, and benefits for senior citizens, are supported as per the finance bill for the financial year 2018-19.
Note: Press Ctrl+Alt+I from the Gateway of Tally to import the latest statutory changes supported for payroll.
Standard deduction of Rs. 40,000 is supported.
To view the standard deduction slab
● Go to Gateway of Tally > Display > Payroll Statutory Info. > Income Tax Classifications > Standard Deduction .
To view the income tax computation report with standard deduction
1. Go to Gateway of Tally > Display > Statutory Reports > Payroll Reports > Income Tax > Computation .
2. Select the employee, and press Enter to view the Income Tax Computation report.
3. Select Standard Deduction and press Enter to view the Standard Deduction report for the employee.
The health and education cess slab of 4% tax rate, is supported.
To view the health and education cess slab
● Go to Gateway of Tally > Display > Payroll Statutory Info. > Income Tax Slabs > Health and Education Cess Slab .
To view the health and education cess in the income tax computation report
1. Go to Gateway of Tally > Display > Statutory Reports > Payroll Reports > Income Tax > Computation .
2. Select the employee.
3. Select Tax on Total Income in the Income Tax Computation report, and press Enter .
To print the ITNS Challan 281
1. Go to Gateway of Tally > Accounting Vouchers > F5: payment > A : Payroll Autofill .
2. Select Income Tax Challan to Process for the payment.
3. Print the voucher challan.
The ITNS Challan appears as shown:
The exemption on medical reimbursement and transport allowance is removed effective from 1st April 2018.
To view the medical reimbursement and transport allowance classifications
1. Go to Gateway of Tally > Display > Payroll Statutory Info. > Income Tax Classifications .
2. Select Medical Reimbursement .
3. Press Escape and select Transport Allowance .
Increase of exemption limit for senior citizens in mediclaim insurance and expenditure for specified diseases, is supported.
To view the medical reimbursement and transport allowance classifications
1. Go to Gateway of Tally > Display > Payroll Statutory Info. > Income Tax Classifications .
2. Select Mediclaim Insurance .
3. Press Escape and select Mediclaim Insurance (Dependent) .
4. Press Escape and select Expenditure for Specified Disease .
