Introduction
A deduction is defined as sum or amount deducted or allowed to be deducted, the process of taking away an amount or a part of something from a total, or the amount that is taken. An amount or part taken away from a total, especially an expense that you do not have to pay taxes.
An example of a deduction is what is taken out of your payroll cheque for income taxes.
Data Table
*Sr. No | *Deduction Name | *Deduction Code | Subledger Type | *Account Code | *Remitted To | IFSC Code | Account No | Description |
---|---|---|---|---|---|---|---|---|
1 | CPF Deduction | CPF | Employee | 3502003 - CPF Deduction | Central Provident Fund Board | UBIN0XXXX69 | 2XXXX1234XX4 | CPF Deduction |
2 | TDS Deduction | TDS | Contractor | 3502001 - TDS Deduction | Central Government | ICICI00XXXX7 | 6XXX97156XX5 | TDS Deduction |
3 | TDS from Employees | TDS Employees | Employee | 3502008 - TDS Employee | Central Government | HDFC00XXX51 | 9XXXX759691XX7 | TDS from Employees |
Procedure
Data Definition
Sr. No: Defines the serial no of the line item.
Deduction Code: A unique code that identifies the deduction name, this will help the user to easily identify the deduction type while doing a transaction.
Deduction Name: The name for the deduction head, wherein users use this deduction head name while posting the transactions into the system and also user can generate individual report using the deduction name.
Subledger Type: The subledger type indicates the deduction made during a particular transaction. Example: When a payment to be made for a contractor, TDS deduction is done and “Contractor” would be mapped to the subledger type.
Account Code: A set of GL code would be mapped for the deduction code, these accounts codes would be used in the transaction when a deduction need to be made.
Remitted To: The “Remitted To” represent the relevant government department to which all the statutory remittances like Provident fund, TDS, CPF and ESI etc are deducted and remitted as per the Act.
IFSC Code: The Bank IFSC code pertaining to the bank Account of the relevant government department, the IFSC code will be a validation check for the bank account.
Account Number: The Bank account number represent the account number to which all the deduction which are made would be remitted.
Description: A short description shows the deduction details for which the remittance made to the relevant government department.
Steps to fill data
Identify Deduction list that exists at a State level.
Download both the attached template and to updated all the details as per the above information in the empty template provided. The sample data template can be used as a reference to fill in the data.
Read through all the information above before updating the template with relevant information.
Validations
All the fields with * sign are mandatory to be filled in. Without this information, the system configurations cannot be executed.
Deduction Code should to be unique and Length of the code should not exceed max 20 characters.
The Length of the name should not exceed 50 characters.
The format of the Account Code to be 7 to 9 digits numeric and unique no repetitive code should be entered.
The IFSC code should consist of 11 digit alphanumeric (Example ICICI0XXXX97) and the length should not exceed 11 characters.
Attachments
Refer to the “Deduction List” in the uploaded template.
For sample data reference, refer to the uploaded “sample date” file.