Cannot subtract Deductions while calculating Income Tax


I have made some new Salary Components such as Penalty which is configured as Penalty.
However when Income Tax gets calculated, it doesn’t deduct the Penalty or any other deductions in calculation.

Hi there,

Are the components assembled into a salary structure properly? We can’t really troubleshoot without a lot more detail.

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Can you please tell me what options to enable in deductions salary components to allow deduction of income tax?

The thing is salary structure is defined correctly but for some reason only income tax is incorrect. Except that even salary is calculated correctly including net pay.

I’ve read the whole docs but to no avail.