COMPANY CREATION

I. Select Create Company option from Company Information Menu.

(ALT+F3 from Gateway of Tally)
II. Company Creation Screen is divided into two parts, i.e., Top portion which
consists of company basic information's like Company Name, Address,
Contact Info., E-Mail etc. and bottom portion which consists of all base
currency information.
III. Press Yes or Enter to accept the screen and for successful company
creation.
COMPANY SELECTION

I. Press F1 key from Gateway of Tally.

II. List of all companies will appear before you with the options of company
name, company number and financial year.
III. Press Enter to load that company.
ALTERATION OF COMPANY

I. Press ALT+K from Gateway of Tally.

II. Select Alter option in Company Info. Menu.
III. Select the field where you want to change the information of company.
IV. Press Yes or Enter to save the changed information.
SHUT COMPANY

I. Press ALT+F1 from Gateway of Tally.

II. Select the company which you want to close.
III. Press Enter to close the selected company.
DELETION OF COMPANY

1. Press ALT+F3: Company Info. from Gateway of Tally.

II. Select Alter option in Company Info. Menu.
III. Select the company which you want to delete.
IV. Press ALT+D for company deletion.
V. Confirmation Message will appear before company deletion. VI. Press 'Y'
to delete the company.
BACKUP DATA

I.Press Company Information option (ALT+ Y) from Gateway of Tally to get

Backup screen.
II. Select Backup option from the list.
III. Specify source and destination where you want to take backup.
IV. Select the company you wish to take backup.

RESTORE DATA

I. Press Company Information option (ALT+Y) from Gateway of Tally to get

Restore screen.
II. Select Restore option from the list.
III. Specify source and destination where you want to restore the data.
IV. Select the company you wish to restore the data.
V. Press Y or Enter to restore the data at the specified destination.
GROUP COMPANY CREATION

I. Press Company Information option (ALT + F3) from Gateway of Tally to get
Create Group Company screen.
II. Select Create Group Company option after selecting Create Company
Option by pressing ALT + R.
III. Fill all the relevant information's of the group, ie., name of the group,
address,
country, state, mobile number, member companies etc.
IV. Select member companies of the group.
V. Press Enter to create group of various companies which can be depicted as
below.

EXPORT DATA

I. Press ALT + E for Export.

II. Select "Masters" option from the auto populated tab.
III. Select format from the list of formats available.
IV. Press Enter key to export data.

IMPORT DATA

I. Press Alt + O from Gateway of Tally.

II. Select "Masters" option from the auto populated tab if you want to import
master from the selected company.
III. Enter the required path and filename in the Import File Name (XML).
IV. Select any one of the option from the field "Treatment of entries already
existing"
V. Press Enter to import Masters.

GROUP CREATION

 Go to Gateway of Tally > Masters> Accounting Masters > Group >

Create
 Enter on Create option.
 Fill all the information's of the Group Creation Screen.
  Press Enter Key to save the information.

GROUP ALTERATION

 Go to Gateway of Tally > Masters > Alter > Group

GROUP DELETION
  Go to Gateway of Tally > Masters > Alter > Accounting Masters > Group
> Alt + D

LEDGER CREATION

 Go to Gateway of Tally > Masters> Accounting Masters > Ledger

VOUCHER TYPE CREATION

  To Create/ Display/ Alter a Voucher Type:
 Go to Gateway of Tally > Masters > Create > Accounting Masters >
Voucher Types
 Go to Gateway of Tally > Chart of Accounts > Accounting Masters >
Voucher Types
 Go to Gateway of Tally > Masters > Alter > Accounting Masters >
Voucher Types

GODOWN CREATION

1. Select the create option from the Gateway of Tally.

2. Select the location option under Inventory Masters.
3. Type the name of the godown in the Name Field. In our case, we have typed
Huda Branch and Model Town Branch..
4. Type the address of the location in the Address Field.
5. Click on the "Under" option and select the name of the godown under which you
want to create the new godown from the List of godowns.
6. Set Allow Storage of material to Yes.
7. Click on the Yes button.
STOCK GROUP CREATION

 Create Stock Groups from Gateway of Tally > Masters > Create >
Inventory Masters > Stock Group

STOCK ITEM CREATION

 Go to Gateway of Tally > Masters > Create > Inventory Masters > Stock
Item
STOCK CATEGORY CREATION

 Go to Gateway of Tally > Masters> Create > Inventory Masters > Stock
Categories

UNIT CREATION

Go to Gateway of Tally > Masters >

Create > Inventory Masters >Units
Units are of Two types:
1. Simple
2. Compound
CONTRA VOUCHER (F4)

To view the Contra Voucher Entry Screen:

 Go to Gateway of Tally > Transactions > Vouchers > F4: Contra

RECEIPT VOUCHER

To view the Receipt Voucher Entry Screen:

 Go to Gateway of Tally > Transactions > Vouchers > F6: Receipt
PAYMENT VOUCHER

To view the Payment Voucher Entry Screen:

 Go to Gateway of Tally > Transactions > Vouchers > F5: Payment

JOURNAL VOUCHER
To create a Journal using a Voucher Class:
 Go to Gateway of Tally > Transactions > Vouchers > F7: Journal

PURCHASE VOUCHER

To view the Purchase Voucher Entry Screen:

 Go to Gateway of Tally > Transactions > Vouchers > F9: Purchase

SALES VOUCHER
To view the Sales Voucher Entry Screen:
 Go to Gateway of Tally > Transactions > Vouchers > F8: Sales

PURCHASE ORDER

I. Go to Gateway of Tally > Transactions > Vouchers > F:10 Other Vouchers >
Activate Purchase Order using "Show Inactive Option"> Ctrl + F9
II. Set "Purchase Order Processing" to Yes.
III. Go to Gateway of Tally> Transactions> Purchase Order Voucher: Ctrl + F9
IV. Fill all the details of Purchase Order Voucher, ie., supplier name, Order
Number, Item details etc.

SALES ORDER

I. Go to Gateway of Tally > Transactions > Vouchers > F:10 Other Vouchers
(Activate Sales Order: Ctrl + F8)
II. Select "Show Inactive" option and press Ctrl+F8
III. Fill all the details of Sales Order Voucher, i.e., buyer name, Order Number,
Item details etc.
IV. Press Enter or 'Y' to accept the screen.

DEBIT NOTE

I. Go to Gateway of Tally > Transactions > Vouchers > Activate Debit

Note option Alt+F5.
II. Fill all the details of debit note, i.e., Discount, GST, amount etc.
III. Press Enter to accept the voucher.

CREDIT NOTE
I. Go to Gateway of Tally > Transactions > Vouchers > F10: Other Vouchers
(Activate: Credit Note option: Alt + F6)
II. Fill all the details of debit note, ie., Discount, GST, amount etc.
III. Enter to accept the voucher.

STOCK JOURNAL

I. Go to Gateway of Tally> Transactions > Vouchers > Stock Journal (ALT+ F7)
II. There are two portion, ie, source (consumption) and Destination
(Productions).
• Source Field - From where you want to transfer.
• Destination Field - To where you want to store.
III. Fill all the information's relating to stock journal, i.e., Items, Godowns,
quantity, rate and amount etc.
IV. Press Enter key to accept the voucher.
COST CENTRE

I. Activate the cost centre and cost category feature from Gateway of Tally>
Accounting Masters > Select "Show Inactive" option > Activate "Cost
Category "Cost Centre" and "Cost Class" option.
II. Create Cost Categories from Gateway of Tally > Masters > Accounting
Master> Cost Category>
Centre
III. Create Cost Centre's from Gateway of Tally > Masters > Accounting
Masters > Cost Centre
IV. Create Ledger of Electricity Expenses from Gateway of Tally > Masters >
Accounting Masters > Ledger
V. Pass an entry for payment of Electricity Bill from Gateway of Tally >
Transactions > Vouchers > Payment: F5
VI. After saving the voucher, you can display cost centre and cost category
information Go to Gateway of Tally> Display More Reports > Statements of
Accounts > Cost Centres
BUDGET CREATION

I. Activate the option "Maintain Budgets and Controls" from Gateway of

Tally Masters > Create > Accounting Masters > Budget
II. Create Ledger in the company from Gateway of Tally> Masters > Chart of
Accounts > Chart of Accounts > Multi Masters (Alt + H)
III. Create budget for the company from Gateway of Tally> Masters > Create
> Accounting Masters > Budget
IV. Create Voucher for expenses incurred by the company in the month of
specified period (01.06.2021 to 01.07.2021). Go to Gateway of Tally >
Transactions > Vouchers > Payment: F5
V. After saving the voucher, view the report of budget and control of the
company Go to Gateway of Tally> Display More Reports > Trial Balance >
Select Indirect > Budget Variance: F10
CHEQUE PRINTING

I.Go to Gateway of Tally > Utilities > Banking > Cheque Printing
II. Create Ledger of Bank from Gateway of Tally > Masters > Create > Accounting
Masters
III. After setting the option of cheque printing configuration to "Yes". many formats
of cheques appears on the screen.
IV. On selection of default format cheque printing configuration fill ups
automatically.
V. Sample cheque printing screen appears to preview the cheque and press Y to
print the cheque.
VI. Pass payment entry.
Go to Gateway of Tally> Transactions > Vouchers > Payment: F5
VII. After acceptance of payment voucher cheque printing screen appears .

CHEQUE PRINTING FORMAT

BANK RECONCILATION STATEMENT

I. Create Bank Ledger (e.g. State Bank of India) from Gateway of Tally >
Masters > Create > Accounting Masters > Ledgers
II. Pass all the Journal Entries for the month of June 2021 in Tally depicted
ahead.
III. In the nest step, you have to match the company's statements with the
bank statement Bank Statement issued by State Bank of India depicted as
below.
IV. Match the company's statements with the bank statement from Gateway
of Tally > Utilities > Banking > Bank reconciliation for reconciliation on the
bank ledger screen.
V. Pass all the journal entries in Tally which do not exist in company's
statement but exist in bank statement which is highlighted in bank statement
mentioned above by using the key Alt + C.
VI. Mention bank dates for all the settled transactions or you can say that any
transaction exist in company's statement also exist in bank statement.
VII. Press "Y" or accept the screen and you may notice that company's
statement has been matched/reconciled with the bank statement depicted
as below.
VII. Press "Y" or accept the screen and you may notice that company's
statement has been matched/reconciled with the bank statement depicted
as below.
MIS REPORT
TRIAL BALANCE

To view the Trial Balance in Tally Prime::

Go to Gateway of Tally > Display More Reports > Trial Balance
• Press ALT+F1: Details to break down the grouped information or simply drill
down a Group for further detail.

BALANCE SHEET

 To view the Balance Sheet, use the following path:- Go to Gateway of

Tally > Reports > Balance Sheet.
P&L ACCOUNT

To view the Balance Sheet, use the following path:- Go to Gateway of Tally >
Reports > Balance Sheet.
To view the Profit & Loss Account:
I. Go to Gateway of Tally > Reports > Profit & Loss A/c.
II. Press ALT+F1 to view the Profit and Loss Account in Detail.
III. Press ALT + F2 to change the period for the Profit and Loss Account.

IMPLIMENTATION OF GST
1. Create a Company: First of all, create a company from Gateway of Tally
using the following path: Gateway of Tally> Company Info.: ALT + F3 > Create
Company
GST DETAILS SCREEN

2. Enable Goods and Services Tax (GST) and Its Features in Tally Prime: Go to
Gateway of Tally > Features: F11 > Taxation and Enable Goods and Service
 Tax (GST) set to Yes.

GSTR-1

 View Statutory Reports of GSTR 1: You can also view reports

from Gateway of Tally > Display More Reports > Statutory
Reports > GSTR 1
GSTR-2

 View Statutory Reports of GSTR 2: You can view reports from Gateway
of Tally > Display More Reports > Statutory Reports > GST > GSTR 2 and
press Enter

GSTR-3B

 To view GSTR-3B Reports > GSTR 3B

 from Gateway of Tally> Display More Reports > Statutory Reports >
GSTR-3B
PAYROLL ACTIVATION

To enable Payroll:
Go to Gateway of Tally > Company Features: F11 > Maintain Payroll is set to
"Yes".

ENABLE PAYROLL STATUTORY FEATURES

  Go to Gateway of Tally > Company Features: F11 > Enable Payroll
Statutory set to "Yes".

EMPLOYEE CATEGORY SCREEN CREATION

 Gateway of Tally > Masters > Create > Payroll Masters >
Employee Category
EMPLOYEE GROUP CREATION

 Gateway of Tally > Masters > Create > Payroll Masters > Employee
Group
EMPLOYEE CREATION

 Gateway of Tally > Masters > Create> Payroll Masters > Employee

PAYROLL UNITS CREATION

Create the simple payroll units by using following path:
 Go to Gateway of Tally > Masters > Create > Payroll Masters > Units
(Work)

PAY HEAD CREATION

 Create the Basic Salary Pay Head from Gateway of Tally> Masters >
Create > Payroll masters > Pay heads
 Same steps can be applied for other pay heads.
SALARY DETAILS SETUP

 Go to Gateway of Tally > Masters > Alter > Payroll Masters > Employee
> Define Salary Details set to "yes"

ATTENDANCE VOUCHERS

 Go to Gateway of Tally > Transactions > Vouchers > F10: Other

Vouchers > Show Inactive > Payroll Vouchers > Attendance (See
following screen)
PAY ROLL VOUCHERS

 To create Salary Payable Ledger : Gateway of Tally > Masters > Create
> Payroll Masters > Pay Heads and you have to select the following
options for the respective pay head.
(i) Ledger - Salary Payable
(ii) Pay Head Type- Not Applicable
(iii) Under-Current Liabilities
For Payroll vouchers Go to:
 Gateway of Tally > Transactions > Vouchers: CTRL + F4 and press CTRL +
F key for payroll auto-fill.

SALARY PAYMENT

For Salary Payment:

 Gateway of Tally > Transaction > Vouchers > Payment : F5 and Press
CTRL + F key for payroll autofill.
 PAYROLL REPORTS

Statement of payroll Attendance reports Expat reports

Payslip Attendance Sheet Passport Expiry
Pay sheet Attendance Register Visa Expiry
Payroll statement Contract Expiry
Payment advice
Payroll register
Employee profile
Employee head count
Employee pay breakup
Pay head Employee Breakup

In Tally prime, You can generate the following payroll related reports:-
To view Payroll Reports:
 Go to Gateway of Tally > Display more Reports > Payroll Reports.

INTRODUCTION TO INCOME TAX

The term "income tax" refers to a type of tax that governments impose on
income generated by businesses and individuals within their jurisdiction. By
law, taxpayers must file an income tax return annually to determine their tax
obligations.
Income taxes are a source of revenue for governments. They are used to fund
public services, pay government obligations, and provide goods for citizens. In
addition to the federal government, many states and local jurisdictions also
require that income tax be paid.

KEY TAKEAWAYS-
Income tax is a type of tax that governments impose on income generated by
businesses and individuals within their jurisdiction..
Income tax is used to fund public services, pay government obligations, and
provide goods for citizens.
The federal government and many states, as well as local jurisdictions, require
that income tax be paid.
Personal income tax is a type of income tax that is levied on an individual's
wages, salaries, and other types of income.
Business income taxes apply to corporations, partnerships, small businesses,
and people who are self-employed.

Income Tax Return - What is it?

An Income tax return (ITR) is a form used to file information about your income
and tax to the Income Tax Department. The tax liability of a taxpayer is
calculated based on his or her income. In case the return shows that excess tax
has been paid during a year, then the individual will be eligible to receive a
income tax refund from the Income Tax Department.
As per the income tax laws, the return must be filed every year by an individual
or business that earns any income during a financial year. The income could be
in the form of a salary, business profits, income from house property or earned
through dividends, capital gains, interests or other sources.

Tax returns have to be filed by an individual or a business before a specified

date. If a taxpayer fails to abide by the deadline, he or she has to pay a penalty.

Documents required to fill ITR

It is important to have all the relevant documents handy before you start your
e-filing process.
 Bank and post office savings account passbook, PPF account passbook
 Salary slips
 Aadhar Card, PAN card
 Form-16-If TDS certificate issued to you by your employer to provide
details of the salary paid to you and TDS deducted on it, if any interest
certificates from post office and banks
 Form-16A, if TDS is deducted on payments other than salaries such as
interestreceived from fixed deposits, recurring deposits etc. over the
specified limits as per the current tax laws
 Form-16B from the buyer if you have sold a property, showing the TDS
deducted on the amount paid to you
 Form-16C from your tenant, for providing the details of TDS deducted
on therent received by you, if any
 Form 26AS- your consolidated annual tax statement. It has all the
information about the taxes deposited against your PAN -

a) TDS deducted by your employer

b) TDS deducted by banks
c) TDS deducted by any other organisations from payments
made to you
d) Advance taxes deposited by you
e) Self-assessment taxes paid by you
 Tax saving investment proofs
 Proofs to claim deductions under section 80D to 80U (health
insurance premium for self and family, interest on education
loan)
 Home loan statement from bank
 FORMS OF ITR

REGISTRATION FOR E-FILING

What is ITR 1 form also known as SAHAJ form?
As you already know Income Tax Return filing is done by way of submitting the
income tax form to the income tax department. Different ITR forms are
notified by the tax department depending on the source of your income. ITR 1
form commonly known as SAHAJ is one such form. It is one of the most used
forms in India. It is a simple form used for Income Tax Return filing &
submitting your income, deductions and tax details to the income tax
department.
This form can be filed by RESIDENT Individuals who have income upto Rs.
50Lakhs in the Financial Year (F.Y.) 2019-20 ie from 1st April 2019 to 31st
March 2020 from the following:-
 Salary/Pension
 One house property (excluding cases where loss is brought forward from
previous years): This includes earnings from rental income or payment of
home loan interest
 .Other sources: (excluding any winnings/ income from the lottery, income
from race horses etc.) like interest income from bank, income from
dividends ,etc.
 Agricultural Income upto Rs 5000

Further, in case where the income of your spouse, minor child, etc. is clubbed
with your income, then this return form can be used only when your total
income (after clubbing) also falls in the above specified categories.

Who cannot file an ITR-1 Form?

This Return Form cannot be used by an individual whose total income for
theF.Y.2021-22(2020-21) exceeds Rs 50 Lakhs or the following-
 Non-Resident (NRI)
 Not Ordinarily Resident(NOR)
 Director of a company
 Income from more than one house property of
 Previous Year's brought forward loss from house property
 Income from lottery/race horses/quiz/legal gambling
 Anyone having income exceeding Rs 50 lakhs
 Income under the head "Capital Gains" Le short-term capital gains capital
gains from the sale of house, plot, shares etc
 Agricultural income exceeding Rs. 5,000,
 Income from business or profession.
 Loss under the head "Income from other sources"
 If you have had investments in un listed equity shares at any time during the
financial year
 Sample of ITR 1/SAHAJ

1. Who is eligible to file ITR-4 for AY 2022-23?

ITR-4 can be filed by a Resident Individual/HUF/Firm (other than LLP)
who has:
 Income not exceeding Rs 50 Lakhs during the FY
 Income from Business and Profession which is computed on a
presumptive basis u /s 44AD,44ADAor 44 AE
 Income from Salary/Pension, one House Property, Agricultural Income
upto 5000/-)
 Other sources which include (excluding winning from Lottery and
Income from Horse Racing )
 Interest from Savings Account
 Interest from Deposit (Bank/Post Office/Cooperative Society)
 Interest from Income Tax Refund
 Family Pension
 Interest received on enhanced compensation
 Any other interest Income (eg, Interest Income from unsecured loan)
2. Who is not eligible to file FFR-4 for AY 2022-23?
 ITR-4 cannot be filed by an individual? HOP/Firm (Other than LLP) who
 in Resident Not Ordinarily Resident (RNOR), and non-Resident Indian
 has total income exceeding Rs 50 Lakhs
 has agricultural income in excess of Rs 5,000/
 is a Director in a Company
 Has income from more than one House Property;
 Has income of the following nature:
 winnings from lottery
 activity of owning and maintaining race horses
 income taxable at special rates u/s115BBDA or Section 115BBE
 has held any unlisted equity shares at any time during the previous year
 has deferred income tax on ESOP received from employer being an
eligible start-up is not covered under the eligibility conditions for ITR-4

3. What are the changes in ITR-4 as compared to previous years?

 As compared to previous years, ITR-4 of AY 2022-23 has an option

where, you have to answer the below questions:
 Have you opted for new tax regime u/s 115BAC and filed Form 101E in
AY.2021-22?
Select Yes/No.
 Option for current assessment year?
Select Opting in now/Not opting/Continue to opt/opt Please note that
individual or HUF opting for new tax regime u/s 115BAC has to
mandatorily file Form 10-IE before due date of filing of return u/s 139(1).
After filing Form 10-IE, original return or revised return is required to be
filed mandatorily to avail the benefit of new tax slab u/s 115BAC and
Acknowledgement Number and date of filing Form 101E are mandatory
fields in ITR-4.
4. What documents do I need to file ITR-4?
You will need to keep the below documents ready (as applicable) to file ITR-4:
 Form 16
 Form 26AS & AIS
 Form 16A
 Bank Statements
 Housing Loan Interest Certificates
 Receipts for Donation Made
 Rental Agreement
 Rent Receipts
 Investment premium payment receipts - LIC, ULIP etc.

________________________________________________________________

END
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