How to define tax if you have tax slabs:
1- Create a salary head
2- Go to salary group
3- Select your group and add the head under the group and click on the check mark
4- Click the group and set the formula in a mandatory field ‘value’ and in the drop down specify the tax slab formula which maybe pre defined
5- Click ok
6- Done
An example of tax slab and the formula governing it is given below for reference
(Formula)
IFF({Total Earnings Per Year}<=36000,0, IFF({Total Earnings Per Year}<=72000,({Total Earnings Per Year}-36000)*5/100, IFF({Total Earnings Per Year}<=108000,(1800+({Total Earnings Per Year}-72001)*12.5/100), IFF({Total Earnings Per Year}<=144000,(6300+({Total Earnings Per Year}-108001)*18.75/100), IFF({Total Earnings Per Year}>=144001,(13050+({Total Earnings Per Year}-144000)*25/100),0)))))
If tax is a specific integer value, then the second option mentioned in the second attachment is good. This option can be found in the salary module and selecting the professional tax option and thereby specifying your salary scale and its tax
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