1.4.6 Tax

1. On Tax Rule Maintenance screen, click the Additional button and specify the fields.
   For more information on fields, refer to the field description table.

   Table 1-9 Tax - Field Description

   Field	Description
   Flat	If you opt to calculate tax as a flat amount, choose the Flat option.
   Rate	You can specify the percentage in the Rate field. This Rate is applied on the amount to be taxed to calculate the tax amount.
   Exemption Allowed	Deposit Interest Retention Tax (DIRT) is payable on interest on deposits and accounts. Customers belonging to certain customer categories can be exempt from paying DIRT. As part of the DIRT exemption maintenance, you need to indicate such deposits and accounts which will not attract DIRT. While doing so, you will have to mark off specific tax components which you do not wish to be applicable to the account / deposit. In order that a particular tax component is available for marking off as non-applicable during DIRT exemption maintenance, you will have to select the ‘exemption allowed’ option for that component while maintaining its tax rule.
   Cumulative	There are two ways of applying tax: Cumulative Non-cumulative In a cumulative structure, the rate of tax will be calculated in a cumulative manner, where the tax of the previous slab is added to the tax of the next. In a non-cumulative structure, the tax of the previous slab will not be added to the tax of the next slab. Only the rate applicable to that particular slab will be applied. If you check this field the cumulative method of applying tax will be used. if you leave this field blank, the non-cumulative type of tax will be used while calculating the tax. By default, non-cumulative processing is done for tax.

2. Click the Exit button to close the screen.