Deductions before tax calculation not reducing taxable income when "Exempted from Income Tax" is checked on deduction component

[leanorange]

Information about bug

erpNext Version
{
"frappe": "16.12.2",
"erpnext": "16.11.0",
"hrms": "16.4.5",
"payments": "0.0.1",
"wiki": "2.0.0",
"lms": "2.50.0",
"insights": "3.6.0",
"telephony": "0.0.1",
"helpdesk": "1.21.3",
"crm": "1.62.2"
}

Steps to reproduce:

1. Create a deduction component with "Exempted from Income Tax" checked.
2. Add it to Salary Structure
3. Generate Salary Slip
4. Check Income Tax Breakup — "Deductions before tax calculation" shows 0.00

Expected behavior: AD amount should appear in "Deductions before tax calculation" and reduce taxable income
Actual behavior: Field shows Rs 0.00, tax calculated on full gross

Module

accounts

Version

frappe: 16.12.2
erpnext: 16.11.0

Installation method

docker

Relevant log output / Stack trace / Full Error Message.