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Create Pay Heads and Define Income Tax Details in TallyPrime (Payroll)

The salary components constituting an employee’s pay structure are Pay Heads. A pay head may be a benefit or a deduction from the salary. The value of these pay heads could be fixed or variable for each payroll period.

For example, Basic Pay is a fixed pay component, whereas Variable Pay and Bonus are variable components.

A Pay Head Type is categorised as Earnings, Deductions or Reimbursements.

The default pay head types in TallyPrime are:

• Earnings for Employees
  • Attendance based Earnings Pay Head
  • Computation based Earnings Pay Head
  • Flat Rate based Earnings Pay Head
  • Production based Earnings Pay Head
  • User Defined Earnings Pay Head
• Deductions from Employees
  • Canteen Deduction Pay Head
  • Loans and Advances Pay Head
• Employees’ Statutory Deductions
  • PF Deduction Pay Head
  • ESI Deduction Pay Head
  • Professional Tax Deduction Pay Head
  • NPS Deduction Pay Head
  • Income Tax Deduction Pay Head
• Employer’s Statutory Contributions
  • EPS Contribution Pay Head
  • EPF Contribution Pay Head
  • ESI Contribution Pay Head
  • NPS Contribution Pay Head
• Employer’s Other Charges
  • PF Admin Charges Pay Head
  • EDLI Contribution Pay Head
• Bonus Pay Head
• Gratuity Pay Head
• Loans and Advances Pay Head
• Reimbursements to Employees Pay Head
• Income Tax Details
  • Income Tax Pay Head Configuration
  • Income Tax Declarations
  • Override Income Tax Exemption Value
  • Override Income Tax Value
  • Income Tax Configuration
  • Previous Employer Details for Income Tax

Note: For international customers, Employees' Statutory Deductions, Employer's Statutory Contribution and Employer's other Charges pay head types are not applicable.