Deductions

Pre-Tax Deductions

Pre-tax deductions are those excluded from the gross salary before arriving at the employee’s taxable income.

To Add new Pre-tax deductions

1. Navigate to Settings> Payroll settings> CTC Components > Deductions> Pre tax deductions.
2. Click on ADD NEW.
3. Select the “pre-tax deduction” from the drop-down list. Once you select the pre-tax deduction, you can view the tax exemption section and the name of the deduction on the pre-tax deduction textbox.
4. Type the display name in the next option.
5. If you enable the “Do you want to include this component in employee CTC?” toggle button, then this component will be shown on the payslip as part of the CTC.
6. If you want to calculate the payment based on how many days they have worked, enable the “Do you want to calculate this component on a pro-rate basis?” toggle button.
7. Enable the “Status” toggle to make this component Active and use this component in salary templates/salary details. If you don’t wish to use this component in salary templates/salary details, then disabling the toggle button makes this component Inactive.
8. Finally, tap on the “Save” button to save the pre-tax deduction

Post-tax deductions

Post-tax deductions are applied after the tax calculation from the taxable monthly gross salary.

To add new Post-tax deductions

1. Navigate to Settings> CTC Components > Deductions> Post tax deductions.
2. Click on ADD NEW.
3. Type the “post-tax deduction name” on the display name textbox.
4. Choose the deduction frequency from the drop-down as either “Once” or “Every subsequent payroll”.

• If you choose “Once”, then it will be a one-time deduction for the financial year. 
• If you choose “Every subsequent payroll”, then it would be deducted from every month’s payroll.

1. Enable the “Status” toggle button to activate the post-tax deduction.
2. Finally, tap on the “Save” button to save the post-tax deduction.