Accounting entry for deduction from salary

Debit Salary Debit Penalty Credit Salary Payable

When Paid:

Debit Payable Credit Cash

salary a/c....dr. penalty a/c.... dr. To Employee's a/c

When penalty is paid:

Penalty A/c ... Dr

   To  cash/bank

and when penalty is charged from employee as deduction:

Employee' salary payable a/c.... Dr.

   To Penalty A/c

i want to know about deduction in salary a/c 
i m paying 23500pm salary to one of my staff as per her monthly salry come around rs. 282000/- for that i want to know which deduction is applicable to her & at what %...
kindly reply me in details asap.

Dear Prit

You should deduct TDS @ 10% on the income above Rs 2lakh.

Also deduct professional tax @ Rs 200 pm.

Agree with Praveen the company has not suffered any loss as such.

But it is penalising the employee at fault so deducting some amount from his or her salary.

In my view entries should be

Salary 1000

To Penalty 1000 (assume)

To Salary Payable 9000

Salary Payable 9000

To Bank 9000

My question is What is this penalty of Rs. 1000 for the company.

Unless other deductions like EPF, ESI or TDS it is not the Current Liability of the company which it needs to deposit with the suitable department within a particular time frame.

It is not an expense for the company either as it has not suffered any loss as such.

Under what head shall we put it while passing its entry in Tally?

Thanks

Shivani

You need to first establish the accounting method your organization adopted. But i trust is accural method of accounting. kindly follow the postings bellow. The ugly truth is that the company made money from the staff, and usually classified as income(Fine and Penalty). See it this way, Assumed that you paid the employee full salary and ask him/her to pay for the fine without you deducting from salary.  That it the exact and true senario.

In this case, Penalty will be treated as under Indirect Incomes of company.

Dear sir... Under which Accounting Head penalty Account will Come...?

It will be under Indirect Incomes (Accounting Head).

penalty charges account comes udner General expenes a/c head

@ Mr. Rama Chary: In given case, company is not paying that amount, only charging that amount to his employee. It will be only addition for a company. So, in company books it would be other income.