Creating House Rent Allowance Pay Head (Payroll) in Tally ERP9

As computed value is used if the pay head value is dependent on another pay component. You can also specify either percentage or value or combination of both.

 

Path: Gateway of Tally -> Payroll Info -> Pay Heads -> Create

 

 

Name: House Rent Allowance

 

Pay head type: Select Earnings for Employees from the list of pay head types

 

Income type: Fixed

 

Under: Select Indirect Expenses from the list of groups

 

Affect net salary: Yes

 

Name to be displayed in payslip: House Rent Allowance

 

Currency of ledger: ₹

 

Use for calculation of gratuity: No

 

Set/alter Income Tax details: Yes, once enable this option then the below screen will appear.

 

Calculation type: As Computed Value

 

Calculation Period: Months

 

Rounding method: Normal rounding

 

Limit: 1

 

 

Computation Information

 

Compute: On Specified Formula and select pay head as basic pay

 

Effective From: 01.04.2017

 

Slab Type: Percentage

 

Value: 40%

 

Press enter to save the screen

 

 

 

Income Tax component: House Rent Allowance

 

Tax calculation basis: On Projected value

 

Deduct TDS across Periods: Yes

 

Press enter to save the screen