It includes Life Insurance Fund, Fire Insurance Business A/c, Marine Insurance and Misc. Only employer can claim the tax deduction on premium paid for the group health insurance policy for employees in India. Q. Tally Ledger under Group list Tally Optimization, TallyErp9 ledgers creation under proper group of accounts is main part of Tally ERP 9 implementation. For control purpose, the sub heads may be created under staff welfare expense like tea & refreshment expenses, medical expenses, personal accident expenses, uniform expenses etc. of ready to use Accounting vouchers one among which is Journal voucher. Under this Section, you can get term insurance tax benefits of up to Rs. for ex – nominal premium of Rs. Expenses paid by cash or by cheque:-Type of voucher to be prepared:-Cash or Bank payment voucher. Professional Tax Deduction Pay Head 1. A crucial aspect that you should know about is that the upper limit of tax deductions available under this Section also includes tax benefits on investments in PPF (Public Provident Fund), tax-saving Fixed Deposits, and several other tax-saving instruments. Enter the name of the Pay Head in the Name field. 20000 as staff advance in the name of Mr. Rajesh. With Tally.ERP 9, we can record advance payments made to registered or unregistered dealers in a payment voucher and now can raise liability in journal voucher (GST Tax liability on purchases), and can also record a refund in receipt voucher where such advance payment transaction is cancelled, and cancel the liability (GST Tax liability on purchases) on advance payment in journal voucher. And under Accounting Voucher there are already 10 nos. Share premium is the credited difference in price between the par value, or face value, of shares, and the total price a company received for recently-issued shares. This deduction can be claimed for premiums paid towards insuring self, spouse, dependent children and any member of Hindu Undivided Family. Now we create Ledger "Salary Payable" under Current Liabilities, which will be use to made payment to each employee after deduction of advance, tds or any other liability. The most confusing thing in tally.erp 9 for a beginner esp if unfamiliar with accounts is the ledgers and grouping of the same VAT Payable All expenses which appear in Trading Account (except purchases) like Labor ... Insurance premium Interest on loan Legal charge Loss by fire Duties and Taxes Direct Expenses Indirect Expenses. 5,00,000/- (five lakh) by increasing the nominal premium accordingly. From April,2009 Premium can be collected for ULIP Policies also, however, presently premium for Health Insurance policies is not allowed. But wait, the tax benefits available under a term insurance plan and moneyback are same. For example, you might pay an entire year's worth of premium on Jan. 1, for the whole of 2019, or you might pay an insurance premium for the six-month period of Jan. 1 through June 30. Reimbursement Pay Head (Payroll) You can create a reimbursement pay head to account for the reimbursements to be paid to employees, and set the net salary and income tax components accordingly. insurance premium, payment of health insurance premium and expenditure on medical treatment. "Preventive health check-up as the name itself suggests is an expense which one incurs on preventive measures for early detection and safeguard against possible exposure to any disease in future. In my opinion all the insurance cover sum should be increased to a minimum of Rs. then my P&L showing profit 285000 and transfer to my balance sheet as a capital of Rs.285000 but it should be 300000. please suggest how to treat this entry in tally. Click hereto get an answer to your question ️ State under which major headings and sub - headings will the following items be presented in the Balance Sheet of a company as per Schedule - III. To arrive at taxable income, one has to deduct from GTI, the deductions allowable under Chapter VIA (i.e., under section 80C to 80U). Do the premium course here.. Professional Charges Legal Expenses/Charges Depreciation Expenses Interest Expense Penalty Royalty Bank charges Commission allowed Discount allowed Donation & charity Free sample Insurance premium Interest on loan Legal charge Loss by fire The company will record the payment with a debit of $12,000 to Prepaid Insurance and a credit of $12,000 to Cash. Premium can be Collected only for Inforce, Ordinary policies under all modes (YLY,HLY, QLY & MLY) . All the expenses relating to repair and maintenance of official vehicles are booked under vehicle maintenance expenses. More in this category: « Tally ERP 9 Godown,Stock Group,stock Categories, & Unit of Measure Loading a Company » Leave a comment Make sure you enter all the required information, indicated by … 2. For claim settlement entries a new a/c has to be opened in which claim received from insurance company would be credited and on its payment to concerned employee that a/c would be debited, crediting the employee's imprest a/c. Good luck! 20000 from company on 1st December 2017 and we need to enter payment voucher of Rs. What is a Profit & Loss Account? Best place to learn Accounts, Tax, Excel and Tally. So Many frequently, I receive comments/feedback from my readers that after downloading the latest software of tally.erp 9 and creating a new company in tally.erp 9 what they should do to learn the tally.erp 9 and how to go ahead. Go to Gateway of Tally > Payroll Info. No one over 60 In case no one in the family is over 60, the deduction is up to Rs 25,000. Definition of Insurance Expense. Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D) Eligibility conditions and other restrictions in LIC Jeevan Tarang Plan Minimum. Entry to be passed 07/2003 dated 05.09.20003 which was issued after the enactment of Finance Act, 2003, which introduced the taxability on receipts of a life insurance policy for the first time, was passed. if i create this under exp. Thanks & Regards, Arpit Aggarwal Total income from all the heads of income is called as “Gross Total Income” (GTI). It means, if something is not specifically excluded from the all-risk property insurance policy, it would be covered by the insurer. So, in the FY 2009-10 two months insurance premium will be shown as advance payment of expenses (Pre paid Expenses under the group loans and advances or current assets) and on the first day of the next year (FY 2010-11 in this case) prepaid insurance expenses entry which was made on 31st March, 2009 is required to be reversed. Tally ledgers grouping is very much important part of Tally ERP 9 implementation. An employee is not entitled to IT exemption under the group health insurance coverage provided by an employer.. An employee is only entitled to medical facilities and benefits, But he cannot claim tax exemption under IT Act for the premium amount paid by the employer. Insurance Business A/c. 1. And then for the insurance reimbursement, record this separately: Dr Insurance receivable (debtor) $4,500 ($5,000-$500) Cr Insurance income $4,500 So you have insurance income of $4,500 (credit) versus the repair cost (expense) of $5,000, which means your business lost $500 on this whole thing. For what Purpose a Journal Voucher is Used in Tally This voucher is used for all adjustment or due entries in tally software, or in other words entry which is not made by other accounting vouchers are made by this voucher. In every implementation of Group wise Tally ledger list prepared first which affects Trading a/c, Profit and loss a/c and Balance sheet. 4. An all-risk property insurance policy means that the policy will cover everything, expect the perils which are clearly listed under the exclusion head. Maximum. 3&3A. Explain P&L A/c objectives and importance. The following investments and payments are eligible for deduction under Section 80C of the Income Tax Act, 1961: Life Insurance : Premiums paid toward all life insurance policies are eligible for tax benefits under Section 80C. ... 1961 allows tax benefits on health insurance premium. > Pay Heads > Create . Eligible Premium under Sub-section (3) and (3A) of 80C of Income Tax Act,1961 For Life Insurance Policies (other than contract for deferred annuity) for (a) a person with disability or a person with severe disability as referred to in section 80U, or (b) suffering from disease or ailment as specified in the rules made under section 80DDB, Staff Insurance: 1 : Staff insurance premium paid to Vipul Medicorp excluding insurance claim settlement entries. Accounting Treatment of Staff Welfare Expenses. Whenever your business buys insurance, you will pay the premium in advance for a specific coverage period. Other Accounts (to be specified) Premiums or Superannuation Fund A/c, etc. Any sum (not including the premium paid by the assessee) received under an insurance policy issued on or after the 1st day of April, 2003 to 31.03.2012 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured is taxable under income tax act. 3. To find out the element or quantum of income in the insurance proceeds of a life insurance policy and the head of income under which it will be taxed, it is imperative to refer to CBDT Circular No. What is insurance expense? Updated main Groups and Sub-Groups list with respected ledger names [wp_ad_camp_1] Tally Group Tally … Continue reading "Ledgers Grouping in Tally ERP 9" The amount of Rs 5,000 comes under the overall deduction available to individual as per section 80D as per the table above. Tally Ledger List. Hope that makes sense. Let's assume that a company is started on December 1 and arranges for business insurance to begin on December 1. Premium for policies under Salary Savings Scheme(SSS) cannot be paid online. Loans and Advances: > Pay Heads > Create 2. For Example: Rajesh get Advance of Rs. 1.5 Lakh for the premiums paid for buying the plans. Medical insurance premium paid offers tax benefits under Section 80D of the income tax Act. The Finance Act, 2018 offers higher deductions for medical premiums paid for senior citizens. 1,00,000. Tally Erp 9 software have in-built main basic groups. On December 1 the company pays the insurance company $12,000 for the insurance premiums covering one year. Go to Gateway of Tally > Payroll Info. From the list of Pay head Types , select Employee’s Statutory Deductions as the Pay head type. We need to create some sub groups under basic groups and create ledgers under each group as needed. 1. Enter the pay head … Many people might not tell you term insurance plans come with a lot of tax saving benefits, which make them one of the best life insurance options available in the market. Paid Mediclaim Policy 15000 it is exempted under 80D i am very confused to create that ledger in which group. Sum Assured (in Rs.) According to Prof. Carter, "A Profit and Loss account is an account into which all gains and losses are collected in order to ascertain the excess of gains over the losses or vice versa".. Medical premiums paid towards insuring self, spouse, dependent children and any member of Hindu Undivided family which Trading. Benefits on health insurance premium member of Hindu Undivided family, Marine and. Groups under basic groups and create ledgers under each group as needed the insurer for policies under Salary Savings (! 1St December 2017 and we need to enter payment voucher Fund a/c Profit. 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