This configuration is required to define the base for calculation of TDS for the payroll. To open the configuration, follow the path Master Configuration -> Payroll Configuration -> Tax Calculation Mode. Select the tax calculation mode you want to use for the pay cycle. You have following three options available for calculation of tax amount:
- Monthly TDS According to 1st Payslip for a Year (Ex. First Payslip generated on June than Monthly TDS will be average of 10 Months)
- Monthly TDS According to Joining Date of employee (Ex. If employee Joined in middle of year than Avg Monthly TDS will be according to Joining Month (If Employee joined during the current financial Year)
- Always Avg for 12 Month
