income tax declare -2

Income Tax Declarations in TallyPrime (Payroll)

As per the Income Tax Act, while computing the Taxable Income the following
are deducted from the Gross Salary for the Employees.
Before configuring your income tax declarations, you can set the tax regime details for all employees. Employees opting for new option tax regime u/s 115BAC have to forego some of these deductions and exemptions. In order to simplify the calculations, the applicability of deductions and exemptions for each tax regime are predefined in TallyPrime. This means even when you declare the value for a deduction or exemption, it is not considered for tax calculation if the respective deduction or exemption is not eligible under the selected tax regime.
 

Exemptions: As per section 10, Allowances such as HRA, LTA, Transport
Allowance, Children Education Allowance and Children Hostel Expenditure
Allowance are exempted from Income Tax.
 

Deductions Under Chapter VI-A: As per Chapter VI-A of Income Tax, the
following Deductions are allowed while computing the taxable income:
 

Investments (U/s 80C, 80CCF, 80CCG, etc.): Subject to a ceiling. certain
investments are allowed as deduction when the system computes Taxable Income.
 

Others (U/s 80D, 80DD, 80E, etc.): Certain other expenses such as
Mediclaim, and Interest paid on higher education loan are deducted before
arriving at the taxable income.

IN THIS SECTION:

• Income Declared by Employee – Single Employee Multi Component
• Income Declared by Employee – Multi Employees Single Component
  Declare Investments U/s 80C, 80CCF, 80CCG, etc. – Single Employee Multi Component
• Declaring Investments U/s 80C, 80CCF, 80CCG, etc. – Multi Employees 
• Single Component Declaring Other Deductions under Chapter VI-A – Single Employee Multi Component
• Declaring Other Deduction under Chapter VI-A – Multi Employees Single Component