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Tally tds not calculating right

Ravishankar K (Accountant) (461 Points)

07 October 2011

Dear Friends,

In the past year we calculated the income tax of our employees using the EXCEL SHEET and inputting the income and deductions and exemptions, when inputted the same values in TALLY . ERP 9 Release 1.2 latest version, the salary TDS is not getting calculated corrected for eg. take the case of my salary in the excel sheet my IT amoount is O but in tally every month its showing 110 Rs as ITax..

I have attached tally file, excel calculation file and you can see the difference, if anyone is ready to look into the attachment and help me it would be very grateful.

Regards,

Ravishankar

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4 Replies

subramanya (Professional) (907 Points)
Replied 08 October 2011

Hi Ravishankar,

I am using Payroll feature of Tally from last 3 years. I have gone through the data, following corrections needs to be done.

1.       Financial Year Mar 2011 – 12
2.       Pay head configuration for DA & Trans DA is different for March month hence two effective dates needs to be specified with respective percentages.
3.       HRA declaration should be effective from March and the value should be 4500/- and not 75000/-
4.       Professional Tax needs to be specified in Salary details
5.       House Rent allowance pay head – set/alter income tax details > Income tax component should be ‘House Rent Allowance’
6.       Interest on Housing Loan Rs. 150,000/-. Define under Other income (House Property/Other Sources) > Income from House Property with negative symbol i.e. -150000.
7 PT slabs should be specified based on period...

pls modify as applicable

Incase still problem persists, please revert.

Subramanya

1 Like

Ravishankar K (Accountant) (461 Points)
Replied 10 October 2011

Hi Subramanya,

Thank you very much for your advice FY did not matter much, as the first salary im giving from April 11 onwards only, but in future will surely make the FY as March 11- Feb 12 (but will this affect the other accounting entries, is there any place where we can specify the FY for salary only, hope you understood my point, setting FY Mar - Feb for Salary and for other Accounting Entries as Apr - Mar)

but the HRA was the culprit as per your advice i changed / altered the pay head to HRA and inputted the declaration to 4500/- per month .

Now I am getting 0 as income tax for my pay so goal achieved , also have to look into the advice given by you for Professional Tax in chennai we have twice in year deduction Apr - Sep & OCt - Mar so if i give the slabs , when will ptax be deducted , once the slab is reached or at end of period payroll i.e Sep payroll & Mar Payroll. Once i do testing and am satisfied with the performance planning to migrate to tally for payroll, presently payroll is being maintained manually, in excel with excel macros and automation, so wanted ur opinion is is viable to go for tally payroll for staff of 10 nos which in future will go max 20 only, because in excel if any prob is there it can easily be checked corrected or manually overrided, whereas in tally you need to correctly catch the point / area / field and rectify it, please suggest me,

Also have some confusion about the Payroll Heads & their IT implications:

what exactly is meant by

TAX CALCULATION BASIS (Projected or Actual) - Which one should we set? and what it exactly means

DEDUCT TDS across PERIOD ( Yes or No)

For this if i get it correctly for monthly recurring incomes it should be Yes (like basic, da, hra, ta etc) and No for rare incomes ( medical benefit, da arrears, canteen allowance etc which is of dynamic nature and is not same in each month )

subramanya (Professional) (907 Points)
Replied 14 October 2011

Hi Ravishankar,

Please find the corrected data attached.

subramanya

Attached File : 52750 850649 tbk900.zip downloaded: 262 times

1 Like

Kannan (Accounts Officer) (79 Points)
Replied 11 April 2012

Dear Sir,

I am using tallyerp9 build 3.4. We have deducted TDS on salary, contract, rent etc., and remitted to on due date. On 31st March all balances lying TDS collected transferred to TDS payable a/c. On 7th April and afterwards we have paid tds accordingly. My doubt is, while generating Form 16 & Form 16A, how to include CIN of TDS challans paid in previous year books. i.e., TDS collected on 31st march but paid in next FY. I have splitted the company also. Then how to include the TDS payment details in the previous year by which Form 16 & Form 16A having the payment details of April 2012 .

Please help me to solve this

Thanks in advance

Kannan.N