Depreciaton as per Income Tax Act
Hello Sap Experts,
We want to post depreciaiton as per indian income tax act for which we are using dep area 15. But we are not sure that which depreciation key we should use for it.
Is there any standard depreciaiton key for this. If yes how & where to find these. Please help
Thanks & Regards
Deepak Garg
Dear Deepak,
Create Two Depreciation area:-
1. For Normal Book Depreciation Area for Comapnies Act.
2. For Income Tax Depreciation area for IT Act.
Also create Depreciation Keys both for Comapnies Act & IT Act
Regards,
Alok
Similar Messages
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Financial Statement Version asper INcome Tax Act
I am trying to configure financial statement version as per income tax act , we have two depreciation area 01 is for Companies Act and other 15 is for Income Tax act, while configuring FSV Depreciation is posting normally in FSV asper Companies Act where in FSV as per Income Tax the depreciation amount is calculated from the Companies Act Depreciation area ie 01. can any one help me to solve these issue. urgent
Hi,
Please maintain the following:
u2022 In OBD4 create a new Account Group for GL Codes that will be used for posting Depreciation of Area 15.
u2022 Create GL Master Data under this New Account Group
u2022 Assign this GL Code to the FSV as per IT Act.
u2022 Map the GL Code in AO90 by selecting Area 15 specifically.
Please refer to the below links on this:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/4f/71fd71448011d189f00000e81ddfac/frameset.htm
http://help.sap.com/saphelp_erp60_sp/helpdata/en/4f/71fd71448011d189f00000e81ddfac/frameset.htm
Regards,
Kiron Kumar T. -
Hi,
You all might be aware To Evaluate the Income Tax Depreciation in Asset Accounting we have got 2 options:-
1. By Adopting Addittional Depreciation Area (Depreciation Area 15 (Depreciation as per Income Tax
Act 1961)
But the problem that I am facing is we have to give 2 Dep Key one for Book Dep & the other for Income Tax Depreciation and I have defaulted the dep keys in Asset Classes but when I am creating the Asset Master the dep key that is inputted for Book Depreciation is automatically copied to I.T Dep Area which is incorrect.
I have activated the Dep keys.
2. Secondly we can use Group Assets to derive I.T Depreciation I have done the necessary settings in OAYM but when Iam creating a Asset Master the Group Asset field is disabled I have checked the settings in AO21 and made Group Asset field optional but still that particular field is greyed out.
We are using ECC 6.0 Version and I have copied COD- 1IN
I just wanted to know whether SAP has withdrawn support for I.T-Depreciation-India if yes can anybody give me a reference note or country version release so that i can intimate the same to the client.
Regards
SunilDear Ramesh,
Thnx a lot it has worked and my problem has been solved.
Regards
Sunil -
Multiple shift depreciation - as per Indian Companies Act
Dear Friends,
I have problem configuring multiple shift depreciation. Facts of case are as below.
In one year
My plant runs 150 days in single shift = depreciation 4.75% for 150 days
My plant runs 100 days in double shift = depreciation 7.42% for 100 days
My plant runs 165 days in three shift = depreciation 10.34% for 165 days
How should i map this is sap. I can enter shift factor as 1,2 and 3. But how will i get depreciation rate as 7.42% for 100 days and 10.34% for 166 days.
Thanking you in anticipation.
Double posting: Thread locked!Hi,
As per my knowledge depreciation as per companys act only will depreciate as per the shift system(01 depr.area), As per Income Tax Act depreciation based on the lessthan 180 days or more than 180days in the fiscal year.
please check with your client how they are mapping in legessy system and let me know.
regards,
Gopi.P -
Indian Income Tax Depreciation Calculation
Hi
Can any of you please explain/tell me where are the exact SAP configuration settings for the calculation of depreciation calculation as per Indian Income Tax Act by meeting below requirements as per Section 32 of Indian Income Tax Act:
1. If the Asset is being purchased and used in a Financial Year for 180 Days or below 180 Days - Depreciation has to be calculated 50% of Annual Depreciation.
2.If the Asset is being purchased and used in a Financial Year for more than 180 Days - Depreciation has to be calculated 100% of Annual Depreciation.
Waiting for your valuable reply.
Thanks and Regards
P.V.S.R.GuptaBut if I follow your suggestion of taking Period Control Method 04, it would calculate 1/2 Year Depreciaton only
No. If the asset is in use for >180 days, then it's acquisition date must therefore occur in periods 1-6 which will set the depreciation start date to the beginning of the year. This will result in a full year's worth of depreciation.
If the asset is in use for <180 days then the start date is set to mid year which results in only 6 months worth of depreciation to be posted.
All of this can be adjusted per your FYV and on a yearly basis if the FYV is year dependent in the asset period control calendar assignments table.
I'll be the first to admit that I don't know the statutory requirements of India but I know how FI-AA works and can't think of an alternative solution for you.
-nathan -
Income tax issue without PAN no.
Hi Expert
If an employee having annual compensation INR 1.5 L than he/she will not be come under tax and in this case there is no need maintain the PAN no. in IT 185.
My question is that according to SAP if an employee dont have PAN no. because of non availability of taxable income than 20% flat tax would be applicale for him/her or not?
If yes pls guide me how to map that kind of scenario in sap.
I am maintaining following notes.
1568264
1558465
1572614
1575366
Pls treat this on high priority
regards
sachinHi Sachin,
Please go through the below circular:
4.8 Section 206AA.
4.8.1 Finance Act (No. 2) 2009, w.e.f. 01/04/2010 has inserted sec. 206AA in the Income-tax Act which makes furnishing of PAN by the employee compulsory in case of payments liable to TDS. If employee (deductee) fails to furnish his/her PAN to the deductor, the deductor shall make TDS at a higher of the following rates
i. at the rate specified in the relevant provision of this Act; or
ii. at the rate or rates in force; or
iii. at the rate of twenty per cent.
4.8.2 The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS . This section applies to any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVII-B of Income Tax Act. As chapter XVII-B covers all Payments including Salaries, Salaries are also covered by Section 206AA. In case of salaries there can be following situations
a) Where the income of the employee computed for TDS u/s 192 is below taxable limit.
b) Where the income of the employee computed for TDS u/s 192 is above taxable limit.
In first situation, as the tax is not liable to be deducted no tax will be deducted. In the second case, if PAN is not furnished by the employee, the deductor will calculate the average rate of income-tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to deducted at the average rate. Education cess@ 2% and Secondary and Higher Education Cess @ 1 % is not to be deducted, in case the TDS is deducted at 20% u/s 206AA of the Income-tax Act.
Regards
Raviiii -
Parallel accounting for income tax
Hello Experts,
Please explain configuration process for depreciation as per income tax.
we are using depreciation as per company act, need to extend parallel accounting (general ledger) for income tax.
Thanks & regrds,
SachinHi
For Indian Income Tax Depreciation, you would have to create a new depreciation area. If you are on EhP 5, please have a look at the below business function:
FIN_LOC_CI_8
This business function would need to be activate in SFW5.
The below notes are also useful:
1964284
1997948
783919
Thanks & Regards
Sanil Bhandari -
What is Income Tax Depreciation - India and How it is dealt in SAP?
Dear Experts,
My Client wants Book Depreciation and Income Tax Depreciation???
I want to know how the IT Depreciation is dealt in SAP alongwith the necessary Configuration settings....??
Whether we will be able to show both the Balance sheets : Tax Balance Sheet as well as Companies Act
Regards,
Nimish Agarwal
deleted
Moderator: Upon next violation of SDN rules your user will be blockedHi Nimish,
Please follow the link below where I have replied on IT Depreciation and the concept of Group Asset earlier. This will help you.
Re: Concept of Group Asset
Re: Depreciation as per IT Act
Regards,
SAPFICO -
Income tax issue for mid month joinees
Issue 2:
For New (mid month) joinee at the first month gross salary is calculated based on the earned salary amount *12 months (or no. of remaining months for financial yr end), but in my client income tax deducted based on the actual salary (not earned salary) from the first month onwards.
For example :
Employee X,
Joined date 15.08.2011,
Actual salary = 1,00,000 INR. Earned salary for 15 days = 50,000 INR.
While Start Payroll for the period 5th (August) 2011. The WT /416 Gross salary = 4,00,000 (50000*8). Based on this gross salary income tax calculated, But I want to calculated the gross at first month (august 2011) based on follows,
Gross salary : August month earned salary = 50,000 + Actual salary per month =1,00,000*7 =7,00,000.
Gross salary = 7,50,000 INR.
Please give me some solution
Thanks and regards
Mohan .VHi Param Dayal,
New issues rise Now....
For New (mid month) joinee at the first month Exemption U/S 10 is calculated based on the Conveyance Allowance amount *12 months (or no. of remaining months for financial yr end), but in my client income tax Exemption U/S 10 based on the actual salary (not earned salary) from the first month onwards.
For example :
Employee X,
Joined date 15.08.2011,
Conveyance Allowance = 800 INR. Earned Conveyance Allowance for 15 days = 400 INR.
While Start Payroll for the period 5th (August) 2011. The WT /130 Exemption U/S 10 = 3,200 (400*8). Based on this Conveyance Allowance The Exemption U/S 10 calculated, But I want to calculated the Exemption U/S 10 at first month (august 2011) based on follows,
August month earned Conveyance Allowance = 400 INR + Actual Conveyance Allowance per month =800*7 =5,600.
Exemption U/S 10 = 6,000 INR.
Please give me some solution
Thanks and regards
Mohan .V
Edited by: mohantamilan on Sep 26, 2011 2:52 PM -
Dear All
for an Employee , his total taxable income is Rs 2,65,395 pe annum
so per month it would be Rs 22116.
But it is showing income tax for april month as Rs 44,210.
His PAN is also being maintained.
Kindly guide me in resolving this issue.
Regards
VishHi Vishwesh,
Many a times the scenario is seen.
It is not necessary that if Total TAXABLE INCOME = X
Then Tax per month is X/12.
In the month of April, there must be an allowance that makes the tax more for this person.
Please check the RT well.
If u do not find any extra amount in RT then check for PAN Number entries , has it been manintained from day 1 and what rate is it calculating.
Regards,
Prabha -
Income tax - wrong computation in /460
Dear Seniors,
While processing the march-2015 payroll, I found wrong income tax computation for few employees in form 16. system is working fine for rest employees, as per my understanding it may be due to master data issue. I have checked the thing again and again but not able to resolve.
I am looking forward for your expert advice.
Regards,
RituHi Venkatesh,
Thanks for your prompt reply.
Please find the details are as below...
* /101 Total gross 112,227.00
* /110 Net payment 10.00-
* /115 COA/CLA Bas01 60,627.00
* /117 Superannuat 36,418.00
* /121 Nom. ExGrat 100000.00 36,418.00
* /124 Mon Reg Inc01 60,627.00
* /129 Voluntary R01 36,418.00
* /130 Exemption U 21,064.64
* /138 Form 217 2( 112,227.00
* /3F1 Ee PF contr0101 4,370.00
* /3F3 Er PF contr0101 3,120.00
* /3F4 Er Pension 0101 1,250.00
* /3F5 Ee Mon PF c 4,370.00
* /3F6 Ee Ann PF c 21,122.00
* /3F8 EDLI adm ch0101 0.75
* /3F9 PF adm chrg0101 65.55
* /3FA PF basis fo0101 36,418.00
* /3FB PF Basis fo0101 36,418.00
* /3FC Pension Bas0101 15,000.00
* /3FD Mon perk (e 61.00
* /3FE Interest ac 291.00
* /3FG Ann perk (e 148.00
* /3FJ VPF basis f0101 36,418.00
* /3FL PF Basis fo0101 15,000.00
* /3I1 Deduction u 34,854.00
* /3I2 Gross amoun 24,630.00
* /3P1 Prof Tax - 01010101 I 200.00
* /3P2 Professiona01010101 60,627.00
* /3P3 Prof Tax - 200.00
* /3R2 Non-metro H 18,209.00
* /3R4 Non-metro H 36,418.00
* /422 Empmnt tax 1,000.00
* /4E4 HRA Annual 21,064.64
3 /090 /128-LEAVE 01 1,213.93
3 /091 /128-LEAVE 01 2,101.04
3 /092 /128-LEAVE 01 1,820.90
3 /111 EPF Basis 01 36,418.00
3 /112 ESI Basis 01 60,627.00
3 /113 ESI Basis N01 100000.00 60,627.00
3 /114 HRA Basis 01 36,418.00
3 /116 Gratuity Ba01 36,418.00
3 /118 PTax Basis 01 60,627.00
3 /119 PTax Basis 01 100000.00 112,227.00
3 /120 Nom. ExGrat 100000.00 36,418.00
3 /125 Mon Irr Inc01 51,600.00
3 /128 Leave Encas01 36,418.00
3 /134 Annual Non-01 51,600.00
3 /136 1DSD Basis 01 36,418.00
3 /137 1DSD Basis 01 36,418.00
3 /139 VPF Basis 01 36,418.00
3 /180 /124-BONUS 01 36,418.00
3 /807 Partial per01 100000.00 24.00
3 /808 Partial per01 100000.00 31.00
3 1004 M230-HRA 01 18,209.00
3 1016 M200-SPECIA01 6,000.00
3 6009 B301-EX-GRA01 51,600.00
* /410 Ann Reg Inc 293,030.50
* /411 Ann Irr Inc 51,600.00
* /416 Gross Salar 344,630.50
* /418 Balance 323,565.86
* /424 Aggrg Deduc 1,000.00
* /426 Incm under 322,565.86
* /430 Gross Tot I 322,565.86
* /432 Agg of Chap 34,854.00
* /434 Total Incom 287,710.00
* /4MI Monthly Tax 169,663.00
* /403 Marginal ta 10.00
* /437 Tax credit 2,000.00
* /436 Tax on tota 3,771.00
* /446 Tax payable 1,771.00
* /404 Mrgnl tax r 10.30
* /450 Tax payable 1,824.00
* /449 Education C 35.00
* /447 Sec and Hig 18.00
* /458 Net tax pay 1,824.00
* /460 Income Tax 1,824.00
* /4MS Monthly Sur
* /4ME Monthly Edu 1,941.75 35.01
* /4MH Monthly Hig 970.87 17.50
* /4MT Monthly Tax 97,087.38 1,771.49
Ritu -
Hi Experts,
I am getting Income tax issue as per SAP for one employee income tax have to deduct 7450 rupees for the month of April.
But my client has been deducted 9000 rupees for the month of April and paid salaries through legacy. Already I maintained one additional wage type and entered the difference amount 1550 rupees in info type 0015 and that amount is adding to gross, net salary of employee.It is not calculating Income tax.
They are not accepting to this process.So please seggest me how can I adjust that income tax difference amount.Hi
Below ZTAX is the rule and 9TAX is the Dummy WT, below is the example.
ZNN1 086 INTAX
ZNN1 087 ENDIF
ZNN1 088 IF O IF Original (Voluntary Tax)
ZNN1 089 PIT ZTAX NOAB Tax Calc
ZTAX*9TAX ELIMI * ADDWT /460ADDWT *
Good Luck
Pavan
Reward if it is helpful -
Issue on Projected Income Tax (Payroll India)
Hi Experts
We have upgraded the system with SP_HR Component patch level 64 and configured SAP Note 1568264.
We have an issues on Projected Income Tax.
Scenario :
Monthly sal : 25000/- and paid the same to employee in Apr, May 11.
In the month of June employee has LOP for 2 days and paid 22000/- against June 11.
Now system is calculating projected IT based on 22000/- for the remaining months i.e., 22000*10= 2,20,000/-.
Showing projected income tax as 2,20,000+50000 = 2,70,000/- (should be 3,00,000/-)
Please suggest the possible ways to resolve this.
Appreciate your help.
Thanks
Venkat Babu KuradaHi Experts,
New issues rise Now....
For New (mid month) joinee at the first month Exemption U/S 10 is calculated based on the Conveyance Allowance amount *12 months (or no. of remaining months for financial yr end), but in my client income tax Exemption U/S 10 based on the actual salary (not earned salary) from the first month onwards.
For example :
Employee X,
Joined date 15.08.2011,
Conveyance Allowance = 800 INR. Earned Conveyance Allowance for 15 days = 400 INR.
While Start Payroll for the period 5th (August) 2011. The WT /130 Exemption U/S 10 = 3,200 (400*8). Based on this Conveyance Allowance The Exemption U/S 10 calculated, But I want to calculated the Exemption U/S 10 at first month (august 2011) based on follows,
August month earned Conveyance Allowance = 400 INR + Actual Conveyance Allowance per month =800*7 =5,600.
Exemption U/S 10 = 6,000 INR.
Please give me some solution
Thanks and regards
Mohan .V -
Income Tax Exemption on Professional Tax Deducted for Tamilnadu Employees
Hi Experts,
I am working on India Payroll and configured Professional Tax for Tamilnadu employees. Professional Tax is deducted correctly for the employee in the month of August and then in month of January.
However while calcuating income tax exemption system is considering only amount deducted in the month of August for the exemption upto December month and in the month of January its cosidering PTax deducted in the month of August and January both. In case of Maharashtra employees form first month its considering annual projected Professional Tax amount for Exemption.
Can anyone guide me what changes i have to do for considering projected PTax amount for exemption in case of Tamilnadu employees.
Thanks in advance.
OMKARAs per standrad the for chennai professional tax is projected for every six months right
so it is takeing like that say the entire amount will be upto to Projection period so it is takeing for that period
We have similar issue at one of the client place that is instead of deducting the PTAX for every six months it has to be deducted
for mothly so we have changed the frequnecy of deduction from six months to monthly so than it has shown the entire project amout yearly
and lets wait for the expert views on this -
Income Tax Calculations - Issue
Client is saying that as per their existing SAP system, the Income tax calculation is made on Gross salary. And they are saying that if any additional taxable payout is made in a month to an employee, then the total tax on this additional payout should be paid by the employee in the same month. So basically his total tax would be the (general regular monthly tax + total tax on the additional payment), which as per them the system is not calculating correctly since October 2010.
Hi,
Thanks for your reply Jurgen & Remi. I am pretty new to Payroll & this is India Payroll.
Now, the issue is how should I proceed ahead.
1. The client says that the wage types are already configured in the system in such way that on certain wage types, the tax which is calculated is paid in the same month. Can u pls inform that which processing class & cumulation class do I need to check in Table 512w_d for this wage type.
2. As I need to see this whole functioning in Schema, pls guide as to where I should check this whole tax calculation in Schema.
3. The function I have heard which is used is India for Income tax is INTAX.
Looking forward to your reply.
Thanks a lot!!!
Edited by: SAP ST on Nov 25, 2010 7:24 PM
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