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Tax Configuration in Tally.ERP 9

The Tax Configuration screen allows the user to make all the necessary Income Tax related Configuration changes from one single screen.

The Tax Configuration screen allows the users to configure the following:

  • Salary as per provisions contained in Sec 17(1)

  • Details of Perquisites

  • Details of Profits shared in lieu of salary

  • Details of Allowances exempted U/s 10

  • Deductions U/s 16

  • Other Income Declared by Employees

  • Deductions Under Chapter VI-A

  • Details of Relief's granted

  • Tax Deduction details

The detailed process is explained one by one for each of the above.

To view the Tax Configuration screen,

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


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Tally.ERP 9 allows the user to drill down into each component and configure/define the same.

Salary as per provisions contained in Sec 17(1)

To define the components for Salary as per Provisions contained in Sec 17(1),

  • Bring cursor, on Salary as per Provisions contained in Sec 17(1) and press Enter


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  • Press Enter on Define Salary


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The Pay Heads and Ledgers can be configured to select the appropriate Income Tax Component, Tax Calculation Basis and Deduct TDS Across Period(s) as explained in the Pay Head Configuration screen.

Details of Perquisites

To enter the Perquisite details,

  • Bring cursor, on Value of Perquisites U/s 17(2) (as per Form 12BA) in Tax Configuration screen and press Enter


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  • Select Single Employee or Multi Employee to define perquisite details for a single Employee or all Employees respectively.

Single Employee

  • Select Single Employee from above screen and press Enter

  • Select an Employee from the List of Employees and press Enter

  • In the Perquisites screen,

  • Select the required allowances in the Nature of Perquisites field

  • In Effective From field, specify the date from when the Perquisites are applicable

  • Enter the Perquisite Amount in the Value of Perquisites Computed Value field

  • In Amount If Any Recovered From the Employee, specify the amount if any which recovered from Employee. If nothing is recovered, the leave this field empty.

  • The Amount of Perquisite Chargeable to Tax is prefilled

  • Specify the Amount on which employer is paying the Tax on behalf of Employee in the Amount on which Tax is Paid by Employer field


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  • Press Enter to accept and save

Multi Employee

  • Select Multi Employee from Value of Perquisites u/s 17 (as per Form 12BA) sub screen and press Enter

  • Select the required Expenses from the Perquisites list and follow the process similar to single Employee as explained above.

Details of Profits in lieu of Salary

To enter the details of Profits in lieu of Salary,

  • Bring cursor, on  Profits in lieu of Salary u/s 17(3) (as per Form 12BA) in Tax Configuration screen and press Enter


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  • Press Enter on Profits in lieu of Salary u/s 17(3) (as per Form 12BA)

  • Select the required Employee or All Employees

  • In Effective From field, specify the date from when the Profits in Lieu of Salary is applicable

  • In Amount Chargeable To Tax, specify the value which is paid to the Employee as profit on which tax has be paid by the Employee


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  • Press Enter to save

Details of Allowances U/s 10

To enter the details of Allowances U/s 10,

  • Bring cursor, on the required Allowance under Allowances U/s 10 in Tax Configuration screen and press Enter


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  • Drill down under Define Values  will allow the user to enter the Declaration details for selected Allowance similar to Declarations menu already discussed

  • Drill down under Masters  will allow the user to configure the Pay heads for the required Income Tax Component as explained in the Pay Head Configuration menu already discussed

Deductions U/s 16

To enter the details of Deductions U/s 16,

  • Bring cursor, on either Entertainment Allowance or Professional Tax under Allowances U/s 10 in Tax Configuration screen and press Enter


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  • Press Enter to Configure the Pay Head/Ledger for the selected Allowance or Tax similar to Pay Head Configurations discussed earlier

Other Income Declared by Employees

To enter the details of Other Income Declared by Employees,

  • Bring cursor, on either Other Income (House Property / Other Sources) under Other Income declared by Employee in Tax Configuration screen and press Enter

  • Select the required Employee from the List of Employees

  • Select the Particulars of Income Other than Salary - Income from House Property from the List


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  • Specify the Effective From date

  • Specify the Details of Income from House Property. Based on the details provided tally will calculate the income from house property.


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Similarly you can select the applicable other Income.


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  • Press Enter to Accept and save

Deductions Under Chapter VI-A

To enter the details of Deductions under Chapter VI-A,

1. Investments

  • Bring cursor, on either Investments (80C and 80CCF)  under Deductions under Chapter VI-A in Tax Configuration screen and press Enter


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  • To add Investment declarations for all employees, select Multi Employee Single Component and follow the process explained in Investments - Multi Employee Single Component.

  • To add Investment declarations for each employee one by one, select Single Employee Multi Component and follow the process explained inInvestments - Single Employee Multi Component.

2. Other Deductions

  • Bring cursor, on either Others (80D, 80DD and 80E etc.)  under Deductions under Chapter VI-A in Tax Configuration screen and press Enter


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  • To add Others declaration for all employees, select Multi Employee Single Component and follow the process explained in Investments - Multi Employee Single Component.

  • To add Others declaration for each employee one by one, select Single Employee Multi Component and follow the process explained in Investments - Single Employee Multi Component.

Details of Relief's granted

To enter the Relief Details,

  • Bring cursor, on Relief (U/s 89, 90 & 91) in Tax Configuration screen and press Enter

  • Select the required Employee from the List of Employees and press Enter

  • Select the required Section from Relief list under the Particulars of Relief

  • Enter the start date in the Effective From date field

  • Specify the relief amount in the Annual Amount field


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  • Press Enter to save

Tax Deduction Details

To enter the Tax Deduction Details,

1. Advanced Tax Declared by Employee

  • Bring cursor, on Advanced Tax Declared by Employee in Tax Configuration screen and press Enter

  • Select the required Employee and press Enter

  • Specify the details of the Advance Tax paid as shown:


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  • Press Enter to Accept and save

2. Tax Deducted by Previous Employer

  • Bring cursor, on Tax Deducted by Previous Employer in Tax Configuration screen and press Enter

  • Select the required Employee and press Enter

  • Specify the details of the Tax Deducted by Previous Employer as shown:


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  • Press Enter to Accept and save

3. Tax Deducted Other than Salary

  • Bring cursor, on Tax Deducted Other than Salary in Tax Configuration screen and press Enter

  • Select the required Employee and press Enter

  • Specify the Deductor and tax deduction details as shown:


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  • Press Enter to Accept and save

4. Self Assessment Tax Declared by Employee

  • Bring cursor, on Self Assessment Tax Declared by Employee in Tax Configuration screen and press Enter

  • Select the required Employee and press Enter


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  • Press Enter to save the details

 
 
 
 
Tally.ERP 9 Reference Manual LIBRARY
1.
Installation of Tally.ERP9
2.
Site Licensing of Tally.ERP9
3.
Shortcut Keys in Tally.ERP9
4.
Maintaining Company Data
5.
Creating Masters
5a. Accounts Information [Creating Masters]
5b. Inventory Information [Creating Masters]
6.
Voucher Entry
7.
Reports in Tally.ERP9
8.
Excise for Dealer
9.
Excise for Manufacturer
10.
Reports [ Excise for Manufacturer]
11.
Excise for Importer
12.
Service Tax in Tally.ERP9
13.
Tax Collected at Source (TCS) in Tally.ERP9
14.
Tax Deducted at Source (TDS) in Tally.ERP9
15.
Value Added Tax (VAT) in Tally.ERP9
16.
Central Sales Tax (CST) in Tally.ERP9
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
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