Tally Tutorial : How to compute Income Tax of Employee

 Tally.EP 9 Income Tax computation

Tally.ERP 9 with its new release 3.0 has lots of new features. One of the main attraction of this release is Income Tax computation for Employees. With payroll in place this feature now complements payroll of Tally. Now Employees salary calculation as well as its Income Tax computation is now possible. As described Tally Income Tax computation has following features.

  • Forms 16, Form 16AA*, Form 12BA
  • Form 24Q* (Quarterly) and Form 24* (Yearly) as hard copy and ‘e’ formats
  • ITR1 to file Return
  • ITNS 281 Challan
Following reports in Income Tax has been provided
  • Employee wise – Computation Report
  • Employee wise – Salary Projection Report
  • Challan Reconciliation report
  • Income Tax related Exception Reports

This presentation gives us detailed view of how Income Tax can be computed and How to see above mentioned reports.



ApniTally readers can ask questions related to this feature as comment. I would respond to queries.

2 Replies to “Tally Tutorial : How to compute Income Tax of Employee

  1. Income Tax on Salary is Really awesome in Tally. yet, a little mistake in IT return.

    when you prepare the IT Return, it does not capture the Middle Name e.g. Father's Name from the employee master where we normally fill up father's Name so Middle Name will remain Blank.

    The solution to this problem is to write Employee's full name in the employee Master in Employee Name field.

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