Company Tax setup – An overview

Through this component, you can set up the tax system that will govern the tax calculations of an employee.

In short, you can

• Record all the tax related details of the company

• Define the perquisites that are provided to the employees

• Map pay elements that are taxable in nature to the tax items

• Specify the tax parameters that will govern the tax processing for an employee

• Record the tax deposits with the Income tax department

Recording company tax information: “Company Tax Setup” activity enables you to record all company related tax information. You can record various details like the TAN, PAN, TDS Circle, company address, and employer type. You can also specify the details of the persons authorized for the processing of various forms like Form16 and Form 24.

Maintain perquisites: Perquisites are defined as the non- monetary benefits provided by the company to its employees in addition to the regular salary. “Maintain Perquisites Setup” enables you to define various perquisites that are provided to the employees. Ramco Indian Taxes broadly categorizes perquisites into three types namely, Accommodation, vehicle and others. You can define various perquisites for each type and make it available to the employees.

Map tax items to pay elements/Accumulators:  AThis activity enables you to define the pay element through which the tax needs to be deducted. It also allows to map tax Items defined under various sections of Income Tax   to a pay element or an accumulato.

Set tax parameters: You must specify the parameters that will determine the tax processing. The following are the parameters that will influence the tax processing.

• Cut-off for Tax Proof Submissions

• Allow modifications of previous year’s tax data

• Process period for taxation based on

• Supplemental tax rates

• Tax computation rules

TDS Deposit Details: This activity enables you to can record and modify the details of the amount remitted to the Income Tax Department after deducting it from the employee earnings.

Getting familiar with the activities inside