In this post, we will see the Salary entry in Saral Income Tax of an individual.
Let us begin
The pre-requisites for this are as below;
- Form 16 / All month payslip from the employer
- Assessee details should be prepared (check the tutorial on Assessee creation)
- In case of multiple employers (worked for more than one employer in the year), make sure to split the details accordingly
To begin with, select the individual and under Computation tab.
On the right-hand side of the screen, the salary entry screen will be displayed. First, select the Number of Employers i.e., with how many employers the individual was employed in the FY.
Now, enter the salary details of the individual.
Note: In case of more than one employer, the salary details have to be entered separately for each employer.
The salary details can be entered in three ways in Saral IncomeTax. Those are;
- Form 16 – Details as in Form 16 received from the employer(s)
- Yearly – Annual salary details as in payslip of the individual
- Monthly – Month-by-month salary details as in payslip of the individual
Goto Entry Type and select the required type of salary entry from the dropdown.
FORM 16 ENTRY
Firstly, we will see FORM 16 type of salary entry. Select Form 16 from the dropdown and click on “…” button.
The salary entry screen will be displayed. Here, enter the salary and other details as in Form 16.
The details to be entered in this screen are;
- Employer details as in FORM 16
- Salary Details as in FORM 16 – Basic salary details with allowances under sec 17(1), Perquisites details under sec 17(2), Profits in lieu of salary under sec 17(3)
Note: Exempt allowance details have to be entered in the “…” button shown next to “Less: Allowances…”
Enter the Allowance details, select the applicable section under which it is exempt and enter the amount that is to be exempt from tax. Also, after entering, save the information.
- Lastly, enter the deduction details – Standard Deduction of Rs. 40000 will be auto considered. Entertainment Allowance and Professional Tax details have to be entered as applicable.
On entering all these details the “Income chargeable under the Head Salaries” will be computed.
You need to Save the details and continue.
Now, we will see how the yearly salary details can be entered. Select Yearly option form the dropdown and click on “…” button.
The salary details entry screen will be displayed. The details are to be entered in different tabs as shown on the screen.
Then, enter the details, one by one;
- Employer – Details of the employer
Summary – Salary details will be auto-populated from the subsequent tabs. Deduction details have to be entered manually.
- Main Components – Basic Salary details
- Allowances – Different Allowances details with exemptions
Perquisites – Different perquisites details with exemptions
Note: Add / Remove Perquisites link can be used to list only the required perquisites on screen. Select the required perquisites and save. The selected will only be listed on the screen.
Others – Other than salary details like Bonus, Commission, etc.
On entering the details in each of the tabs, click on Save to save the details.
Next, we will see the monthly salary details entry to Saral IncomeTax. This is similar to yearly entry but the details have to be entered on a monthly basis. Select Monthly option form the dropdown and click on “…” button.
The salary details entry screen will be displayed. The month on month salary details are to be entered in different tabs as shown on the screen.
Enter the details, one by one;
- Employer & Summary will be similar to an entry in Yearly entry
Note: Professional Tax entry, in Summary, can be done on a yearly basis or on a monthly basis by clicking on the “…” button.
Main Components – Basic Salary details on a monthly basis.
Note: On enabling Extrapolate Values, the values entered in the first month will be automatically taken to all months.
- Similarly, Allowances, Perquisites, and Other salary information has to be entered on a monthly basis
Next, On entering the details in each of the tabs, click on Save to save the details.
In case of multiple employers, enable Current / Latest Employer checkbox against the employer with whom the individual is employed as on MARCH month of the FY.
On saving the details, the values entered will be taken for Income Tax computation which can be seen on the Tax Meter.
This completes the process of entering Salary details of an individual in Saral Income Tax