How to Create Income Tax Details for Employee in TallyERP.9

Did you know Tally has feature to create Income Tax Computation of each employee like a professional income tax software. But for this you need to configure the Income Tax Details for each employee. Configuration can be filled up one by one or filled all employee details combine.

So How to Create Income Tax Details for an Employee:

Gateway of Tally - Payroll Info - Income Tax Details - Declaration

Select Declaration and Income Tax Declaration appear on your next screen like 

Exemptions

House Rent Allowance 

Leave Travel

Transport Allowance 

Children Education Allowance

Children Hostel Expenditure 

Income Declarated By Employee

Income From House Property

Income From Other Source

Interest on Housing Loan - Self Occupied

Deductions Under Chapter VI-A

Insurance Premium

Investment in Long Term Infrastructure Bonds

NPS (National Pension Scheme)

Public Provident Fund (PPF)

Deposit in Tax Saving Fixed Deposit Nationalized Bank

Tution Fees etc.

Deductions u/s 80D 80DD, 80E etc

Contribution to Political Parties or Electoral Trust (80GGC)

Donation for Scientific Research or Rural Development (80GGA)

Donations (80G)

Expenditure for Medical Treatment for Handicapped Dependent (80DD)

Expenditure for Specified Disease (80DDB)

Income From Loyalty or Patents (80RRB)

Interest on Housing Loans (80EE)

Interest on Saving Bank A/c (80TTA)

Medical Insurance (80D)

Medical Insurance Dependent (80D)

Payment of Interest on Higher Education Loan (80E)

Person with Disability (80U)

Rent paid but not in Receipt of HRA (80GG)

After filling all details Computation will look like below image:

We will discuss in our next post about How to enter Income, Deductions for an employee to create perect computation.