We feel options available in Income Tax Computation drop down box is self-explanatory, anyhow we have tried to explain the options here.
- Compute for this month: means the system will calculate income tax for all employees based on the investment declarations/proofs submitted by them.
- Use previous month's TDS: means that the system will pull the previous month's income tax amount for current payroll month
- Consider zero TDS: means the system would not calculate income tax for all employees
1. If the tax is overridden, then the system will consider overridden Income Tax amount in both 'Compute for this month' and 'Use previous month's TDS' cases.
2. Tax can not be overridden in case of option 'Consider Zero TDS' is chosen.
If you want the system to calculate and deduct income tax for some employees and want to manually enter the tax amount for other employees, please read How to run payroll for some employees with tax and for others without tax?