This helps you to make salary head for your employee that means you can add TA/ DA, H.R.A, P.F. LIC etc. on salary by defining its type. To access this facility you need to come by this tag;Files>Master> Salary Head.
A window will appear to you in which you are expected to fill up following information.
How to change or delete existing salary Head? If you want to make any changing or deleting existing salary head, click on the desired row given there and apply button of New or Delete as per need.
One thing should be kept in mind that you can't define basic salary in the option of salary head. This option has been prepared for giving to add salary head in employee's salary. Basic pay will always define from Employee option only.