# Manage Tax configuration 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**](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration), then **Products** from the drop-down menu. This will launch the **Products** menu. Select **Manage Tax configuration.** ![](https://mifosforge.jira.com/wiki/download/thumbnails/129957925/Capture%2085.PNG?version=1\&modificationDate=1484293468422\&cacheVersion=1\&api=v2\&width=1080) #### View Manage Tax configuration ![](https://mifosforge.jira.com/wiki/download/attachments/129957925/Capture%2086.PNG?version=1\&modificationDate=1484293526624\&cacheVersion=1\&api=v2) #### Manage Tax Components #### Create Tax Components Click on +create tax components button ![](https://mifosforge.jira.com/wiki/download/thumbnails/129957925/Capture%2087.PNG?version=1\&modificationDate=1484293636271\&cacheVersion=1\&api=v2\&width=1080) 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.](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/accounting/chart-of-accounts-general-ledger-setup) 5 - **Start Date** - Provide start date. 6 - Click on **Submit** button. #### View tax components Products>>Manage tax configuration>>Manage tax components ![](https://mifosforge.jira.com/wiki/download/thumbnails/129957925/Capture%2088.PNG?version=1\&modificationDate=1484293713286\&cacheVersion=1\&api=v2\&width=1080) #### Edit tax components Products>>Manage tax configuration>>Manage tax components>> View tax component ![](https://mifosforge.jira.com/wiki/download/thumbnails/129957925/Capture%2089.PNG?version=1\&modificationDate=1484293787242\&cacheVersion=1\&api=v2\&width=1080) #### Manage Tax Groups #### Create Tax Group Click on +Create tax group ![](https://mifosforge.jira.com/wiki/download/thumbnails/129957925/Capture%2090.PNG?version=1\&modificationDate=1484294009850\&cacheVersion=1\&api=v2\&width=1080) 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 T**ax component** & provide **date**. In the example shown above create tax component - ISLR tax is being shown for selection. 5 - Click on **Submit** button. #### Applying tax **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. ![](https://mifosforge.jira.com/wiki/download/attachments/129957925/Capture%2091.PNG?version=2\&modificationDate=1484294545004\&cacheVersion=1\&api=v2) 3 - Click on **Submit** button. **Account level configuration** Step 1 - Fill all the required fields for creating savings account :- [Saving Accounts](https://docs.mifos.org/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/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. ![](https://mifosforge.jira.com/wiki/download/attachments/129957925/Capture%2091.PNG?version=2\&modificationDate=1484294545004\&cacheVersion=1\&api=v2) 3 - Click on **Submit** button. #### Reviewing tax collection 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. ![](https://mifosforge.jira.com/wiki/download/thumbnails/129957925/32.png?version=1\&modificationDate=1460968835267\&cacheVersion=1\&api=v2\&width=1080) Related articles * Page:[Chart of Accounts - General Ledger Setup](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/accounting/chart-of-accounts-general-ledger-setup) * Page:[Manage Tax configuration](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/manage-tax-configuration) * Page:[Interest Calculations for Deposit Products](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/interest-calculations-for-deposit-products) * Page:[Accounting Saving Product Fields](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/untitled/saving-product-fields/accounting-saving-product-fields) * Page:[Loan Product Fields—Additional Fields for Loans with Variable Terms based on Loan Cycle](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/loan-products/loan-product-fields/loan-product-fields-additional-fields-for-loans-with-variable-terms-based-on-loan-cycle)