One time tax for Leave Encashment in Saral PayPack

Hello, in this post we will show the process of One time tax for Leave Encashment in Saral PayPack software.

One time tax is a process of calculating TDS on a lump sum amount given to the employee during the year. This is applicable to other than salary components such as Bonus, Ex-Gratia, Leave Encashment, Arrears, Additional Earnings, and deduction, etc.

In Saral PayPack, One Time Tax can be calculated during the above mentioned component calculation in their respective modules. For the purpose of explanation, in this post, we will be showing the process in the Leave Encashment module. The same process can be considered in all other applicable modules

Let’s start with the process

To calculate in One Time Tax, we should have enabled TDS in Company details screen of Initial Settings

After enabling the option, enter the required salary settings, employee details, and salary calculations. Next, go to the Attendance menu and select Leave Encashment.

One time tax for Leave Encashment in Saral PayPack - Select leave encashment

Here, do the required Leave Encashment calculation and save the details.

For more information on working of Leave Encashment, view here.

After the encashment process, select the record and click on TDS button.

One time tax for Leave Encashment in Saral PayPack - click on TDS

Here all the records selected will be listed. Select the records for with one-time tax has to be computed and click on Compute.

A message will be shown stating that one time tax cannot be computed. This is due to non-porting of salary data for TDS computation.

One time tax for Leave Encashment in Saral PayPack - Message will be shown

Hence, before doing one-time tax computation, the salary data has to be ported for TDS computation.

In order to port the details for TDS computation, go to Port Details under TDS Details menu.

One time tax for Leave Encashment in Saral PayPack - Select port details

In this window, select the particular employee for whom salary details have to be ported and click on Port Data.

One time tax for Leave Encashment in Saral PayPack- port data

Once the details are port, go back to Leave Encashment in Attendance menu. Here, click on TDS and select the employees for computation. After selecting the employees, you need to click on Compute.

On click of computing, the one-time TDS is calculated and displayed against the particular employee.

One time tax for Leave Encashment in Saral PayPack - click on compute

If required, you can edit the value. Else, click on Save to save the details.

The tax computed will be taken to the deduction for the particular month salary process. This can be viewed in salary editor after processing the particular month salary. It is displayed in Entry Tab of the salary editor window

One time tax for Leave Encashment in Saral PayPack- tax computed

This tax will be combined with monthly tax and also will be considered for the deduction for the month.

To see the tax deducted, go to payslip of the employee and then view the details.

One time tax for Leave Encashment in Saral PayPack - go to payslip and view the details

This completes the calculation of One Time Tax in Saral PayPack. Similarly, you can also calculate for other components.

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