Tally Prime

Prepared by- Babloo Sir (8368894657)

Practical Question

Q-Mr. Mehta Firm, issued cheque to following party, company has 2 Bank A/C there details
and issued cheque details is given below

Both Bank branch - Shahdara

Bank Name Cheque Book Range Opening Balance Account no IFSC Code
ICIC0001578
ICICI bank 100100- 100129 1,60,000 157801507288 HDFC0009611

HDFC Bank 101200-101229 2,70,000 961172838283

Party Name Amount Cheque Number Type of Reference Date of Issue

Kamal Kumar 12,000 ICICI-100100 On account 1-May

Sachin Arora 9,000 HDFC-101200 On account 1-May

Himanshu Aggarwal 23,000 HDFC-101201 On account 1-May

Dhananjay Sinha 19,000 ICICI-100101 On account 1-Aug (PDC) Issue
date 1-May
Kirti Shukla 30,000 ICICI-100102 On account
Gaurav Garg 18,000 HDFC-101202 On account 1-May

1-Sep (PDC) Issue
date 1-May

• Firm Received Cheque/Cash following parties

Party name Amount Payment Received Mode Type of reference Date of Receipt
Narender kumar 2-May
Shailender kumar 20,000 Cash Advance 2-May

Praveen Bansal 18,000 Cheque (Send to ICICI) Advance 2-May
PiyushRana Cheque no 203900 - 2-May
Manjeet Chaubey Canara Bank , Noida Sec 1-Oct (PDC) Issue
62
2nd May
23,000 Cash Advance

34,000 Cash Advance

19,000 Cheque (Send to HDFC) Advance
Cheque no 440230 , SBI
Bank - Rohtas nagar

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• Firm deposit cash 25,000 Rs in ICICI Bank A/c – Details of currency Deposit

2000  9

500  12

200  4

50  4

• Firm deposit Rs 20,000 in HDFC Bank A/c - Details of currency Denomination Deposit

2000  7
500  10
100  10

• Kirti Shukla cheque Cancel by firm on 2nd May - Alter in Voucher (By press
Alt+X) Cancel this Cheque

Bank Reconciliation of HDFC Bank

Party Name Bank date
Sachin Arora 2-May
Himanshu Aggarwal 2-May

Bank Reconciliation of ICICI Bank

Party Name Bank date
Kamal Kumar 2-May
Dhananjay Sinha 2-May

Check Following option After All above transaction

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Cheque Register
Payment Advice
Post Dated Summary

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Tally-PRIME

TDS
(Tax Deduct at Source)

What is TDS?

TDS Stand for Tax Deduct at source , in Individual (Salary) or Firm (Turnover) if Any income
generate by person or firm, then the person or firm liable to pay Tax on Source (Income) . There
are different type of nature of payment where different tax rate is applicable, e.g. Income from
salary , income from Building Rent, Insurance Commission etc.

Deductee and Deductee Types?

Any person or organization, which amount of tax is deduct by government is called Deductee.
Types

• Artificial Juridical Person
• Association of Person
• Body of Individuals
• Company Resident
• Company Non-Resident
• Co-operative Society
• Government
• Individual/HUF (Resident)
• Individual/HUF (Non-Resident)
• Local Authority
• Partnership Firm

Deductor and TAN ?

Deductor is the person or Company who is liable to deduct the tax at source from the Party
(Deductee) and amount is remitted to the government account. Every Deductor is required a
unique identification number (TAN) Tax Deduction Account Number which is combination of
alpha numeric.

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When we paid TDS?

Income from such as salary, lotteries, interests from banks, payment of commissions, rent
payment, payments to freelancers, etc. Cross the limit by central government criteria of
earning then we will paid TAX. Percentage of Tax set according to limit of earning

What is Threshold Limit

TDS calculate on the basis of threshold limit, if Threshold limit cross then the person or firm
paid tax according to Slab wise percentage or fixed percentage.
E.g. Mr. Veer Earn Rs 9,000 Rs from Games. here threshold limit for Games Earning is Rs 10,000
so there is no TDS Exist or charge on Veer. if Income more than 10,000 then he has to pay tax @
30%.

TDS Nature of Payment

Section Nature of Payment Payment Tax Rate Threshold
Code If NO PAN @ Limit
192 Payment to Govt. Employees other than
Union Government Employees 92A 20% or *Income
192 Payment of Employees other than Govt. 92B Higher Rate) Tax Slab
Employee 193 *Income
193 Interest on Securities 194 * Tax Slab Tax Slab
194 94A Rate
194A Dividend 5000
94B * Tax Slab 2500
Interest other than interest on securities Rate 10,000
10%
194B Winnings from lotteries and crossword 10% (50,000 for
puzzles 10% Senior
194BB Winnings from horse race citizen)
194C 30%
Payment of contractors and sub- 10,000
194D contractors
194E Insurance Commission 4BB 30% 10,000

Payments to non-resident 94C 1% individual 30,000
Sportsmen/Sport Associations 2% Other

94D 5% 15,000

94E 20% NA

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194EE Payments in respect of Deposits under 4EE 10% 2,500
194F National Savings Schemes 94F 20% 1,000
194G Payments on account of Re-purchase of 94G 5% 15,000
194H Units by Mutual Funds or UTI 94H 5% 15,000
194I Commission, prize etc., on sale of Lottery 94I 10% 1,80,000
194J tickets 94I 2% 1,80,000
194LA Commission or Brokerage 94J 10% 30,000
194LB 4LA 1% 2,50,000
194LC Rent 4LB 5% NA
194LD Rent of plant & Machinery 4LC 5% NA
195 Fees for Professional or Technical 4LD 5% NA
196A Services 195 20% NA
196B Payment of Compensation on acquisition 96A 20% NA
196C of certain immovable property 96B 10% NA
Income by way of Interest from 96C 10% NA
196D Infrastructure Debt fund
Income by way of interest from Indian 96D 20% NA
company engaged in certain business
Interest on certain Bonds and Govt.
Security
Other sums payable to a non-resident

Income in respect of units of Non-
Residents
Payments in respect of Units to an
Offshore Fund
Income from foreign Currency Bonds or
shares of Indian Company payable to
Non-Resident
Income of foreign institutional investors
from securities

INCOME TAX - SLAB RATE

➢ Individual (Resident / Non-Resident)

A single person who is domiciled in this state , A non-resident is every individual who is not a
resident individual.

Age <60 Year Tax Rate
Taxable Income NIL
Rs Upto 2,50,000 Rebate Extend (5%)
Rs 2,50,000 to Rs 5,00,000

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15%
Rs 5,00,000 to Rs 7,50,000 20%
Rs 7,50,000 to Rs 10,00,000 25%
Rs 10,00,000 to Rs 12,50,000 30%
Rs 12,50,000 to Rs 15,00,000
More than > 15 Lakh

Example:- Practical in Tally

Mr. Mehta Earn 50,000 per Month work as IT-Developer in XYZ PVT Ltd. Pan
Card no - AHNPV2333F. Claim Insurance Tax Benefit Rs 12,000 .Mr. Mehta Visit
to Inder Kumar Office (CA-Firm) TAN Number DGPO03211H.. Show to Report of
TDS Calculation. Paid Taxable Amount to Government and issue Challan of Tax
Payment.

Sol

Calculation Step for Taxable Income

• First calculate Annual Income (Party)

= 50,000 x 12 = 6,00,000

Less : Tax benefit 80C = (-) 12000

Rebate on Income Upto (-) ,5,00,000

Taxable Income = 6,00,000 -12,000- 5,00,000
= 88,000 (Taxable Income)

Now 10% Tax charged on Income According to Slab Rate. Because income above 5
Lakh.

➢ STEP-1

Create new firm in Tally then Enable Feature of TDS - Fill the Required Details.

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• Fill Firm Tan Number if Branch Division Not Allot (Pass this as Blank)

Fill the Details of Deductor (Responsible Person) Who Deduct the Amount from
Deductee.

➢ STEP-2
Create Ledger (Required)

1. Mr. Mehta - (Sundry Creditor) - Deductee

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Prepared by- Babloo Sir (8368894657)

Mr. Mehta (Deductee Types is Individual/HUF Resident)

2. TDS on Salary - (Duties & Taxes) - Tax

• Create New category As per Section and Nature of Payment
• 92 B (For PVT Employee) 92A (for Govt. Employee)

• Pass this Ledger

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3. Salary - (Indirect Expenses) - Source

➢ STEP-3
Pass Journal Voucher for TDS calculation (Press F7) in Accounting
Voucher .
e.g.
Dr. Source
Cr. Party
Cr. TDS

➢ STEP-4

Check the TDS Report
Display more reports - TDS Report - TDS Outstanding

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➢ STEP-5
Payment to Party (Accounting Voucher) – Cash/Bank (Any)

➢ STEP 6
Payment of TDS (Accounting Voucher) - F5 (Press Ctrl + F (Auto Fill))

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• Fill Details on Above Screen as per create

➢ STEP-7

Challan Print
Goto Display - Day Book - Enter on TDS Payment Entry - Press Alt+P (Select
Current) then Press Enter

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➢ STEP-8

Challan Reconciliation (In TDS Reports Section)
Display - Statutory Report - TDS Report - Challan Reconciliation

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• Press Alt + R for Reconcile Challan
Fill Cheque No if Paid by cheque, Bank details etc.. if Pay by cash no
need to fill

• In TDS Section (Form 26Q)

• If we check TDS Outstanding report again there Is no invoice
pending.

Practical Question

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Q-1

Mr. Varun Kasyap , Insurances Agent Earn Rs 80,000 Annually as Insurance
Commission, he send a bill to CA firm Mr. Vikas , Mr Vikas deduct TDS on
Varun earning and paid TDS Amount to the Department. Describe All
process of TDS and Calculate TDS Amount on Commission

Note- (Commission Rate 5% on Income)

(TDS on Commission - Rs 4000)

Q.2 Mr. Vikas, Owner of Printing Machine earn Rs 1 Lakh 90 Thousand Yearly
on as a rent on Printing Machine. PAN Number is AHNPP3120H. Calculate
the TDS and Payment Process.

Note - (2% Charged on Rent on Machinery)

(TDS - 3,800)

Q-3 Calculate TDS Payable by following Parties

Person Name Salary Per Month 80 C 80 D
Vikas 12000 5000 0
Anuj 85000 15000 2000
Raghav 56000 19000 14000

After Standard deduction calculate TDS on salary

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TCS

(Tax Collect at Source)

TAX COLLECTED AT SOURCE (TCS) is a tax collected by the seller from the buyer for selling Goods
which comes under TCS. TCS rate may be vary from other category. Tax Collected by the buyer
is to be paid to the government. the current TCS rate chart is mentioned below.

Nature of goods TCS Rate

Alcohol Liquor for human consumption 1%

Scraps 1%

Parking Lot, Toll Plaza, Mining 2%

Timber obtained under a forest Lease/Other than forest Lease 2.5%

Tendu leaves 2.5 / 5%

Example

Firm Sold 1000 KG Copper Scrap (HSN-74040012) @ Rs 90 Rs Per Kg. on 1st Aug to Somit
Chauhan (Local) GST @ 18% + TCS Charges. Calculate TCS Payable and GST Amount.

Practical Step by Step

Step:1

Create Company and Activate GST and TCS.

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Step: 2
1. Create Party Ledger

2. Sales Ledger

*Nature of goods (Create New category) →
3. Output CGST @ 9% and Output SGST @ 9% Ledger – Under (Duties & Taxes)

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4.TCS Ledger

Step:3
1.Create - Units

2. Stock Item

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Step:4
Gateway of Tally – Voucher – Press F8 (Sales)

• For Tax Analysis Report Press Ctrl + I and Goto TCS Analysis or GST Analysis Report

Step:5
• Check TCS Outstanding Balance in Balance sheet

• Press Enter on Duties & Taxed for ALL Reports View

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• you can check into Display more reports – statutory reports - TCS Report - TCS outstanding
Step: 6
• Goto Payment Voucher by press F5 (F2- Set Date 1-Sep) in Accounting voucher and press

Ctrl+F for Payment TCS outstaying balance

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• For Print TCS Challan –
• Goto – Day Book – Press Enter on Payment Voucher
• Press Alt+P key – Select Current

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Step: 7

• Check balance sheet again, there is not outstanding balance show, because we done
payment of TCS. or Display more reports – statutory reports - TCS Report - TCS
outstanding

Q- ABC Timber following Opening stock - GST @ 18% - HSN 4407

Item QTY Price (Per Ton/KG)
Wood Sawn 12 Ton 2500 RS Ton
Peeled Wood 260 KG 340 RS KG
Chipped Length wise Wood 300 KG 520 RS KG

• Sold following stock to RAJAT (Individual/HUF -Resident) – Local Sales

Item QTY Price (Per Ton/KG)
Wood Sawn 10 Ton 2700 RS Ton
Peeled Wood 90 KG 480 RS KG
Chipped Length wise Wood 70 KG 840 RS KG

➢ Calculate TCS on following Sales Item and Paid by cash

Ans – TCS - 3225 Rs.

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PAYROLL – (Salary Calculation)

TALLY-Prime

• CREATE COMPANY - and set Payroll Features after save firm.

• Back to Gateway of Tally - Create - Payroll Masters.

• If Employee category not show , Press

➢ Below Information show Step by Step (How to Create PAYROLL-SHEET in Tally)

• Define Salary option available in Alter from Gateway of Tally and same as we can alter
Payroll voucher type or Page up previous voucher alteration in payroll voucher types

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Step-1

• Employee Category - Create

You can insert category as Per Branch office, or Any Place name where office Exists.

For E.g.

Step-2

• Employee Group - Create

In this Group we can insert Department wise Name (HR DEPT, SALES DEPT, MKT DEPT., or any Other
name), or if no Department pass only Employee Salary in this section, We must pass Category in this
section to Create Payroll Report.
For E.g.

Example of MKT DEPT. and Sales Dept.

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Step-3

Units(Works) - Create
1. Create HRS (Hours for Calculate Overtime of Employee)

2. Create Minutes (Minutes for Calculate Hours)

3. Create Minutes (Minutes for Calculate Hours)

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• Select Compound in TYPE

Pass this Creation selecting HRS of 60 Minutes.

Step-4

Attendance /Production Types - Create

1. Create Leave (Employee Deduction According to Leave Day) - It Reflect in Payroll Sheet

2. Create Overtime (Employee Extra Income According to Overtime Hours) - It Reflect in Payroll Sheet

• Pass Above Attendance and Production Types

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Step-5

• Pay Head

Set Pay Head According to Employee Salary

For E.g.

Basic Salary + HRA + TA + DA + Bonus - Leave Amount - PF + Overtime + Reimbursement

• Basic Salary is User defined Salary (Set by the user in Voucher)
• We can set different % Rate on HRA / TA / DA / PF According to salary criteria
• Bonus (we can set it on % wise Or user Define wise or Flat Rate wise
• PF is Deduction Type into Salary
• Leave Deduction According to Day Wise Deduction
• Overtime Pay According to Hours.
• Reimbursement According to User-Define

1. Basic Salary

• Pass this Pay head and set it above mentioned Screen

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2. HRA - TA - DA (e.g. If salary above15k or Less than 15k) Different % wise we can calculate.
• HRA (House Rent Allowance)

• TA (Transport Allowance)

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• DA (Dearness Allowance)

• Above Pay head ADD in Basic Salary because these are earning for Employee You can add any
other Pay head in this Section.

3.Bonus

We can set it as user define or flat rate / month wise-Weekly as per Company Policy

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4.PF (Provident Fund - Dedication into salary)

• PF % Rate According to Company Policy Deduction.

5. LEAVE

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6. OVERTIME

7. Reimbursement 8. Salary Payable (Pay by Company)

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Step-6

From Gateway of Tally - Alter - Salary Details- Define - (Select DEPT)
• MKT DEPT

Leave – 350 RS DAY / BONUS – 1000 RS Month / OVERTIME – 80 RS Hour

• Sales DEPT (same as above but can change different bonus , leave and overtime)

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Select Start Afresh if Want to Apply salary separate from MKT DEPT.(can remove any other allowance)

Step-7

• Create - Employee

(1) KAPIL

After Press 'Yes' Following screen show and select from Employee Group because we already set Salary
in this section, we just only pass this screen.

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• Select MKT DEPT

Fill the required details of Employee as Per Document. It show in Salary Sleep of
Employee. If Employee Bank details set to ‘Yes’ It ask for Bank Account number
and IFSC Code Fill the required as per Document.

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(2) Gaurav Singhal
• Select Sales DEPT

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• Pass this screen after select Sales Dept. and fill the required details of Employee

Step-8

• Alter - Payroll Voucher Type - Select Payroll (then Press Enter)
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Pass this Entry and back to Gateway of tally.

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• Goto Voucher -Press Enter
• Example of Salary calculation of July Month and pass Leave and overtime at the

end of month – day. PressF2 - Select Date 31-july (You can choose According to
Month wise)
• Press (F10)

• Select KAPIL(Leave) = 4 Days and overtime 14 Hours and
• Select again Gaurav (Leave) = 3 Days and Overtime 5 Hours and pass this

voucher

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• Now the time is to calculate salary at the end of the month 31st July. Same as
we calculate salary next month as so on…

• Payroll Voucher
Press (Ctrl+F4) then select class - Payroll

• 1st time we insert Basic salary of Employee and then 2nd time we calculate
further Allowance or deduction (Salary), because further allowance and
deduction is based on Basic salary so our 1st priority is to set the basic
salary in voucher at the end of the month.

• Press (Ctrl + F ) after select class in the voucher. (* Date as per Current
Year)

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• Fill Employee Basic salary and Reimbursement Amount
o Gaurav – 12,000 and Reimbursement – 400 RS
o KAPIL – 16,000 and Reimbursement – 100 RS

• Again press Ctrl+F4 and select class - Payroll and press (Ctrl+F)

Salary (for calculate further Allowance or deduction)

• It auto calculate the allowance and deduction as per details.

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Now salary calculation process of July Month is complete - To see Report (Salary)
Gateway of Tally - Display more reports - Payroll Report - Pay Slip - All item -

Select Employee name (Press Enter)

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• Gaurav Salary July Month

• KAPIL Salary July Month

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• Attendance Register Report

• Pay sheet: - We can check total Payment including All Employee Report.
• Payroll Statement: - We can check single pay head amount wise report.
• Employee Profile : - Here we can check Details of Employee
• Employee head : - Check Salary Branch wise
• Pay head Employee Breakup: Check Report Employee wise (deduction / Liability etc...)

You can print anyone by pressing ALT+P for print Report and select current .

Payroll – Practice Question

Q- Calculate net salary of ABC Employee – Office Branch

• Calculation on Allowances as per criteria

Allowance Percentage
HRA 8%
TA 12%
DA 20%

• Deduction as per following criteria

Deduction Percentage
PF 3%
ESI 2.5%

• Leave Deduction Amount
300
DEPT 400
Sales DEPT. 250
MKT DEPT
Clerk DEPT.

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• Overtime (Per Hour) and Bonus Sheet As per DEPT

DEPT BONUS Overtime (Per Hour)
Sales DEPT. 3000 110
MKT DEPT 4000 90
Clerk DEPT. 2500 80

• Employee name, Basic Salary List, Overtime and Leave in a month Details
for August month.

Name DEPT Leave Overtime (Hours) Basic Salary

Prabhakar SALES DEPT 2 8 15600
Maneet MKT DEPT 0 7 18000
Kapil SALES DEPT 3 6 22000
HImanshu Clerk DEPT 1 8 25000
Naresh Clerk DEPT 6 6 18400
Geeta MKT DEPT 2 4 24000

Calculate Salary of August month for following employee, and Total Salary Generated in
August month by Firm.

Solution –

Name Basic Leave Overtime Bonus HRA TA DA PF ESI Net Salary

Prabhakar Salary Amount Amount
Maneet
Kapil 15600 600 880 3000 1248 1872 3120 468 390 24262
HImanshu
Naresh 18000 0 630 4000 1440 2160 3600 540 450 28840
Geeta
22000 900 660 3000 1760 2640 4400 660 550 32350

25000 250 640 2500 2000 3000 5000 750 625 36515

18400 1500 480 2500 1472 2208 3680 552 460 26228

24000 800 360 4000 1920 2880 4800 720 600 35840

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JOB-WORK OUT ORDER

• Job Work Out Process Chart

Raw Material Job Work Out Order Material Out
Purchase Voucher (1) (Job work)

Job Work Out Order Purchase Against Material In
(2) (Job Work charges) (Semi-Finished)
with Tax against job
(Job work) work out order (1) Purchase Against
(Job Work charges)
Material Out Material In with Tax against job
(Job work) (Finished) work out order (2)

• Step - 1 (Create Company and set features)

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• And, SET GST Features ‘Yes’ and fill details

Question - Prepare 100 PCS Ladies Suit (finished goods) using Raw material

(Dupatta, Salwar and Kurti) and describe process of Job work Out order.
• Step – 2 (Create Ledger, and Inventory Details)

Create – Ledger (Party) Buy Raw Material & Local Purchase @ 5%

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• Input CGST @ 2.5% and Input SGST @2.5% Under – Duties & Taxes

• Create – Group (Raw Material, Finished Goods ) or (Semi-Finished Goods)
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• Create – Unit - MTR – (2 Decimal Place) / PCS

• Create – Location - job Work out / Finished Goods
Press F12 – Feature to Activate
Our Stock with third Party - Yes

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• Create – Stock Item (Dupatta, Salwar & Kurti) set (MTR – Pcs Unit)

Set GST @ 5% for Dupatta Item and same set as other item.
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Set GST – Yes and Apply Description and GST Rate on Salwar Item.

Set GST – Yes and Apply Description and GST Rate on Kurti Item.
• Now , Create Final Product Name (Ladies Suit)

➢ For Activate (BOM) Press F12 (Configuration Setting)
➢ Bill of Material – Set YES

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