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Epf or esi

Yasaswi Gomes new (Finance ) (4514 Points)

06 February 2024

In the company books tally, please give me journal entries for EPF / ESI both

1. Employee

2. Employer contribution

also what voucher shortcut is used for processing pf/esi in Gateway of Tally > Vouchers > press Ctrl + F4 (Payroll)?

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32 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 06 February 2024

Employee Contribution
Tally F7

Salary A/c Dr
To Salary payable A/c Cr
To PF A/c Cr
To ESI. A/c Cr
( Deduction of ESI , PF )

Show PF , ESI under Current Liability.

Payment entry F5

PF A/c Dr
ESI A/c Dr
To Bank A/c Cr
( Deposited in Govt account)

Employer Contribution entry
Tally F5

ESI. A/c Dr
PF A/c Dr
To Bank A/c Cr
( payment in GOVT Account)

Tranfer to P&L under Indirect expenses
Tally F5

Profit & Loss A/c Dr
To ESI A/c Cr
To PF. A/c Cr
( transfer entry)

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Yasaswi Gomes new (Finance ) (4514 Points)
Replied 06 February 2024

Transfer to P&L under Indirect expenses.
Tally F5

Profit & Loss A/c Dr
To ESI A/c Cr
To PF. A/c Cr
( transfer entry)

this is already included in 1st entry Dr. Salary expense. Rest all accounts fall under C liabilities then Great

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 06 February 2024

1st entry is different that is employees contribution , ESI & PF Contribution by employer is an expenses to him so we have to show under Indirect expenses. , in tally not necessary transfer entry , you can show ESI , PF contribution. made by employer under Indirect expenses directly. however to understand I made transfer entry.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 February 2024

Originally posted by : Yasaswi Gomes new
	Transfer to P&L under Indirect expenses. Tally F5 Profit & Loss A/c Dr To ESI A/c Cr To PF. A/c Cr ( transfer entry) this is already included in 1st entry Dr. Salary expense. Rest all accounts fall under C liabilities then Great

No need any separate entry for PandL account.

Bcoz, If We prepare ledgers correctly in Tally then it's automatically going to PandL account.

So, No need JV to PandL.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 February 2024

Originally posted by : RAJA P M
	Originally posted by : Yasaswi Gomes new Transfer to P&L under Indirect expenses. Tally F5 Profit & Loss A/c Dr To ESI A/c Cr To PF. A/c Cr ( transfer entry) this is already included in 1st entry Dr. Salary expense. Rest all accounts fall under C liabilities then Great No need any separate entry for PandL account. Bcoz, If We prepare ledgers correctly in Tally then it's automatically going to PandL account. So, No need JV to PandL.

In case any balances (may be write off or adjustments) c/f to PandL account then we can provide JV to PandL (or vice a versa)

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Yasaswi Gomes new (Finance ) (4514 Points)
Replied 06 February 2024

Ok epf and esi calculations over.

Hra over

Others over

Now income tax on tax brackets

+2.5 lakhs minus 5 lakhs= 2.5 lakh into 5%

+ Another tax bracket= 5 lakhs into 20%

+11 lakh minus tenn lakh = one lakh*30 percent

-tax rebat

+Education cess 4%

+Tds on bonus over

=Tax liability

Will this final amount be shown in salary slip?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 07 February 2024

If deduct TDS then Tax Liability is Zero...

TDS will be shown in Salary Slip...

In case Liability arise then it's can't be shown in Salary Slip. But, It will be show in Form 16.

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Yasaswi Gomes new (Finance ) (4514 Points)
Replied 07 February 2024

Now I have another problem. I have learnt it formula in payroll classes

Here, on cleartax portal is saying

First slab = 0

Second slab = 12.5 lakhs

Third slab = 1 lakh. But not salary minus lower bracket. This is for tds and taxable income minus slab rates into 30% is for IT.

What is the truth?

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 07 February 2024

😇😇😇😇😇😇

If You heared in clear tax then ask the same in clear tax...

Ha Ha Ha ha Ha ha....

😎😎😎😎😎

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 07 February 2024

Originally posted by : Yasaswi Gomes new
	Now I have another problem. I have learnt it formula in payroll classes Here, on cleartax portal is saying First slab = 0Second slab = 12.5 lakhsThird slab = 1 lakh. But not salary minus lower bracket. This is for tds and taxable income minus slab rates into 30% is for IT.What is the truth?

No clarity...

I don't get anything in this message....

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Yasaswi Gomes new (Finance ) (4514 Points)
Replied 07 February 2024

192 b tds section and Income tax on salary Example Income tax payable on salary is 50000 Tds 192 section on salary is 4500 How to integrate both of them?