How to define tax slabs with respect to employee salary

[Joey james]

#19385

I am confused defining my tax slabs. My companies tax slabs is defined in such a way that the variation in the salary may affect tax. how can I do this configuration in the software?

[sidharth]

#20191

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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[Sarah philip]

#20192

Hai.

In the case of my tax slabs, there is a particular integer value for tax. Can you please help me configure my tax slabs

[sidharth]

#20193

Hello sarah,

Under the salary module take click on professional tax. And click on the add button, so that a screen may appear on your screen which looks like the attachment. specify the salary range and specify the tax. Thereby you can set your tax slabs. This attachment was posted in my previous post.

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