Manage Tax configuration
Last updated
Last updated
Mifos - Withhold tax enables withholding of tax or collection of tax from the interested posted on the savings/recurring/fixed deposit accounts.
Withhold tax is applicable on the amount of Interest posted from the savings account or Recurring deposit or Fixed deposited. You can define the percentage of the tax to be withheld at the tax component level. Once you have defined different tax components then you can group all the tax components as one under Manage tax groups.
Beginning at the main screen, select Admin, then Products from the drop-down menu. This will launch the Products menu.
Select Manage Tax configuration.
Click on +create tax components button
1 - Provide Name - Is the tax name.
2 - Provide percentage - Is the tax percentage name.
3 - Select Credit account type - Is the account type to be selected, if you are enabling accounting module then you need to select this field.
4 - Credit Account - Is the account name to be selected, you should have defined account in the Chart of Accounts - General Ledger Setup.
5 - Start Date - Provide start date.
6 - Click on Submit button.
Products>>Manage tax configuration>>Manage tax components
Products>>Manage tax configuration>>Manage tax components>> View tax component
Click on +Create tax group
1 - Provide Name - Is the tax group name to be provided.
2 - Click on Add button - Clicking on Add button will add tax component field for selection. In example 3 & 4 shown above are new tax components added.
3 - Select Tax component & provide date. In the example shown above create tax component - WithholdTAX is being shown for selection.
4 - Select Tax component & provide date. In the example shown above create tax component - ISLR tax is being shown for selection.
5 - Click on Submit button.
Tips:- Only Tax group can be applied not the tax component and You could apply tax group for Savings product, Recurring deposit product & Fixed deposit product.
Product level configuration
In Savings/Recurring/Fixed product under Settings section
1 - Check the check box for Is withhold tax applicable, if you want to enable & apply tax group.
2 - Tax group - Select required/defined tax group from the selection list.
3 - Click on Submit button.
Account level configuration
Step 1 - Fill all the required fields for creating savings account :- Saving Accounts.
Step 2 - In Savings/Recurring/Fixed product under Settings section.
1 - Check the check box for Is withhold tax applicable, if you want to enable & apply tax group.
2 - Tax group - Select required/defined tax group from the selection list.
3 - Click on Submit button.
Once the interest posting happens, tax gets collected on the interest amount.
Note:- Tax is collected on the interest posted not on the entire amount.
Shown below is an example of the interested posted and collected tax scenario.
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