How to Deduct Taxes from Employee’s Salary?

To deduct tax from employee’s salary:

  1. Go to Payroll
  2. In Pay head create pay head name as TDS (Tax Deducted at Source)

See the below figure

3. Save it.

While generating salary (in “Employee salary”) the “TDS” has to be entered in the given field “pay head”, as shown below. Then the tax will be deducted from the salary of the selected employee.

This has to be added in “Salary Settings” :

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