Income tax calculation error
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
Vish
Hi 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
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Presently In payroll system income tax calculation is based on allowance paid basis. but our client is required that is projected bais. for example
presently if am paying bonus through info type 15 rs 100,000 then system is deducting tax from remaining month in equal installment but client is required that it has to be deducted one time at this month.
please help me
BMSDear All,
I read the attached document in sap note i.e.1024284 in this sap note attached document is Guideline.pdf in this document they have clearly mention that ....
Introduction
There may be a need to apply flat tax rate on irregular payments for a particular month. If
they are required to be taxed separately it is not possible to do in the regular payroll run
in the system currently. Currently the system supports TDS at different rate on these
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during regular run.
It means if we applied this note then system will deduct flat % on bonus amount if i am wrong please tell me the fact
BMS -
Income Tax Calculation problem: Urgent Help Needed
Dear Gurus,
I am facing a unique problem. Our client has two incentives
1) Product Incentive
2) Sales Incentive
Every month incentive figures get changed. These two are Monthly Regular Income (Cumulations Class 24) i.e. included in annual tax calculation.
Now for tax calculation, my client wants "Actual Earning" and "Estimated Earning for the rest of the year" to be different. But Income tax calculation in SAP (for the month of April 2007) takes Actual Earning and multiplied it by 12( i.e. 11+1) to calculate Estimated Earning. But my client wants this Estimated Earning to be different.
Now please let me know is this possible in SAP system and how to calculate this?
Your help will be highly appreciated
Waiting for an early reply.
Thanking You,
With Best Regards,
PratikHi,
I am not understand your problem give your mb then i talk to you
mhpo -
Hi Friends,
I have a Issue in Income Tax calculation,
for the month of September, the form 16 for a particular employee is a follows
Form 16 summary
Gross Salary 783,399.00
Exemption U/S 10 5,600.00
Balance 777,799.00
Empmnt tax (Prof Tax) 1,125.00
Aggrg Deduction 1,125.00
Incm under Hd Salary 776,674.00
Gross Tot Income 725,513.00
Agg of Chapter VI 106,008.00
Total Income 619,510.00
Tax on total Income 90,853.00
Tax payable and surcharg 93,579.00
Tax deducted so far 24,100.00
Income Tax 9,926.00
Now i have added a wage Type called Special pay -Rs.100000 in IT 15, eventhough this amount is reflecting in monthly gross salary and RT table, this amount is not considered for Income tax . I.e with or without Wage type Special pay, The gross salary considred for Income Tax is 783399(without any change). Why it is so.
Rgds,
Sekar.Hi Sekar,
Make sure that you have assigned the right processing and cumulation classes to your wage type in table V_512W_D
Make sure that in table V_512W_D cumulation class 1 is ticked for this wagetype.
Warm Regards,
Kapil Kaushal -
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 -
Exemptions in Infotype 0580 not considered in Income Tax Calculation
Dear All,
The following fields or options are displayed, when we execute the infotype 00580 i.e. Previous Employment Tax details.
1]Salary as per provisions u/s 17(1)
2]Value of perquisites u/s 17(2)
3]Profits in lieu of salary u/s 17(3)
4]Exemptions u/s 10
5]Professional Tax
6]Provident Fund
7]Income Tax Deducted
8]Surcharge Deducted
9]Education Cess Deducted
10]Medical Exemption
11]Leave Encashment Exemption Amount
12]Gratuity Exemption
13]VRS Exemption
14]Number of LTA Exempt
15]LTA Carried Forward*
I have entered amount in 1,2,4,5,6,7,8,11,12 & 13 and processed the payroll. The amounts entered in 11,12 & 13 are not being considered in Income Tax calculation while all other are considered.
Can anyone tell me what is the problem and what I have to do for those amounts to be considered for Income Tax calculation.
Regards
Sudhir ShrisunderHi Sudhir,
Can you check if following wage types are present in system by processing of INPET-
Leave Encashment Exemtwage type (/4V7) - This wage type stores the amount entered as the sum of all leave encashment exemptions availed. It gets processed only on the event of the separation of the employee from your organisation. The value of this wage type gets deducted from the maximum exemption limit for leave encashment exemption
Gratuity Exemptionwage type (/4V8) - This wage type stores the amount entered as the total gratuity availed. It gets processed only on the event of the separation of the employee from your organisation. The value of this wage type gets deducted from the maximum exemption limit for gratuity exemption amount.
VRS Exemption wage type (/4V9) - This wage type stores the amount entered as the Voluntary Retirement Scheme (VRS) exemption amount availed. VRS Exemption wage type (/4V9) gets processed only on the event of the separation of the employee from your organisation. No tax exemption is given, in case the employee has availed of the same with any of the previous employers
If these wage types are present then calculation is correct.
Plz note that the value of these wage type get deducted from the maximum exemption limit of the corresponding exemption amounts. Exemption has already compared been considered for them and tax component were computed correspondingly.
Let me know if stll not clear.
Regards,
Praveen -
Hi Folks
My Project is going Live on July 2006. Regarding Income tax i would like to upload all the Master data and Salary data effective 1-Apr-06 and would like to run the payroll manually for three months(April, May and June)by changing the Control Record.
I do not want to go for mid year Go-Live.
If i run Payroll Manually for three months manually the Income Tax is getting calculated from April itself where in Actual go live is only from July and i would like to deduct the system for Income Tax from July only.
How to make the system to calculate Income Tax only from July when i run Payroll manually from April.
Appreciate any help or Any other idea to make the system to work fine.
Regards
RagavanHi,
Sorry for the delayed response. I just got into the group and saw your message. Hope your Go-Live was smooth and successful. One way to address the issue is to have an adjustment figure (either as a payment or deduction) and balance the income tax deducted so far and give the provision for calculations from July onwards.
Would appreciate if you can share how you went about it.
Thanks
Pradeep -
Income tax calculation for Payroll India
Hi guys,
I want to know how the wage type /436 (Tax on Total) is generating.
For example the total Income of an employee i.e. /434 is 417,480 for the month May 2007. I understood, how /434 is generating. But I am not realising how /436 (Rs. 74,244) is generating.
The slab is as per the FY 2007
110,000.00----
0.00 INR
150,000.00----
10.00INR
250,000.00----
20.00INR
99,999,999.00----30.00INR
Can any body explain me. I am waiting for your valuable reply.
Regards
PrasadHi Prasad,
Have you found any answer for /436.
Now am also is same position " HOW /436 IS CALCULATING" my client also want to see the TAX complete calculation.
PLEASE FRIENDS, help me out, ITS VERY URGENT in my UAT presentation.
Now again am starting this thread, Who ever gives required output they can awared their points.
Kind Regards,
Saisree.S -
Withholding Tax Calculation Error for Vendor Down Payment Clearing:Oct '09
Hi,
We are trying to incorporate the new Withholding Tax Structure w.e.f. 01-Oct-09.
There were 3 scenarios possible:
a. Invoice = Down Payment
b. Invoice < Down Payment
c. Invoice > Down Payment
While 1 & 2 were taken care of effectively, the third scenario did not work as expected. The scenario is as follows:
1. Down Payment (Date : 30/09/09)
Amt : Rs. 40000/-;
Withholding Tax @ 15% : Rs. 6000/- (40000 * 15%)
Surcharge @ 10% : Rs. 600/- (6000 * 10%)
Edu Cess @ 2% : Rs. 132 (Rs. 6600*2%)
Higher Edu Cess @ 1% : Rs. 66 (Rs. 6600*2%)
2. Invoice (Date : 02/09/09) - As per new TDS Rates
Amt : Rs. 50000/-
Withholding Tax @ 10% : Rs. 5000/- (50000 * 10%)
Surcharge : NIL
Edu Cess : NIL
Higher Edu Cess : NIL
3. DPC (Date : 02/09/09) - Reversal of TDS calculated in Down Payment (Step 1) above.
Issue:
While making J1INCHLN, amount is adjusted as Rs. -1000/- (hence zero) not payable.
Also, the Surcharge, Edu Cess & Higher Edu Cess are also getting reversed in DPC.
As suggested by SAP Note No. 1372734 - Handling of downpayment clearing scenarios after budget '09, the scenario does not seem to work.
Actual payable should be worked out as under:
Invoice : Rs. 50,000/-
DP : Rs. 40,000/-
Bal : Rs. 10,000/-
TDS @ 10% : Rs. 1,000/-
All TDS Challans, Certificates & Returns must reflect Rs. 1000/- in the Challan.
Require assistance.
Regards,
Kapil TilwaniHi Kapil,
The following needs to be taken care of -
The message controls settings as the note suggests must be set as W.
When entering the details the logic is Vendor Debit amount is Tax amount + 1
The Vendor credit line, the tax code has to be assigned with the advance amount (amount for which the challan has been created) as the tax base amount and the tax amount will be the extra liability that needs to be created.
In your example -
The tax amount will be - 2000 ( the debit at the time of downpayment clearing should have been 4000 instead of 6000)
Tax base amount - 40000 (Challan for this amount has already been made at the time of downpayment made)
The vendor Debit - 2001 (2000 + 1)
The vendor credit - 1
Note - Tax amount and base amount has to be made manually in the withholding Tax tab for the credit entry.
Please revert for any clarification.
Thanks and Regards,
Anit -
Hi Friends,
We have an issue while doing the MIRO
Scenario : - Company code in USD Currency, we have a purchase order in EUR currency which had GR and IR in EUR only last year..this year when we are trying to process IR ( MIRO) for residual amount in EUR currency got the error
"Error in external tax system: Line: 0##### - Unknown tax calculation"
Even when we are trying to post foreign currency invoice from F-43 got the same issue...
Taxware guys said no issues from their side
Is there any year end impact this error ?
Thanks for you help
TKPHi Ravi,
I have verified this one also.no issue there
Issue :- When Trying to post Invoices in Foreign currency with Tax I0/A0 ( Exempt tax codes) there we are getting that error
"Error in external tax system: Line: 0 - Unknown tax calculation error
This is process was worked till last year Dec 2011 but not working on FY 2012... the same scenario working in Dev client but not in PRD and Test systems..
The same tax codes can work for local currency postings but not foreign currency ..other tax codes are working for the both currencies in all systems...
Let me share your idea's
Thanks
TKP -
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 -
Income tax gross salary projection
Hi,
Income tax calculations upto Jan 2012, i.e 10th period gross salary calculations is calculating correctly, but the calculations for February 2012 shows the Gross salary only for three months ( i.e Jan 2012, feb 2012, Mar 2012).
Tax exemptions and all exemptions are taking the same.
Please help me in resolve this issue.
Regards,
MadhuHi Madhu,
Do you have any rehiring or company code change for the pernr? Please go through the explanation below:
/416 is calcualted with the following logic as mentioned:
/416 = /4VA + /4V1 + /4VJ + /4VK + /410/411/413-/414 + (S89-/616)
1. In normal cases, /410 is formed as follows:
/410 = /124 (CRT) + /124 (RT) + current /124 * projection factor
2. However, the logic does not remain same in case of company code changes. For company code changes scenarios, the calculation will happen as follows:
/410 = /124 (RT) + current /124 * projection factor.
/124 from CRT will not be considered in such a scenario. Instead once, /410 is formed and /416 is to be arrived, previous employment details would be considered (/4V* wagetypes).
Can you please review the SAP note 941288 projection of income,and check the settings as available in your system. Let me know if it still doesn't work.
Regards,
Nishtha -
Issue in income tax computation
Dear All,
I have some issue in income tax calculation India Payroll for few employees.
Listed the problems below
1. Exemption Under Section 10 is not considered during Income tax calculation
2. Medi-claim is not deducted from gross salaryHi Lakshman,
Exemption under sec 10 should be considered in the tax calculation. In the Tax calculation all the amount u/s 10 will be stored in wage type /130 and it will subtracted from the Gross salary (/416).
If this is not happening then please check the configuration of the wage type which you are using.
Normally Medical exemption will be processed before the arrival of gross salary.
Hope this will help you.
Thanks & Regards
Saroj Hial -
Wrong calculation of Income Tax
Hi Experts,
We found some calculation error in SAP while calculating income tax
for this f.y. 2010-11. We had entered Rs. 1,03,462.00 in infotype
u201C586u201D for employee code u201C xxxx u201C . As per rule under section 80C
maximum exempted amount is Rs.1,00,000/-, apart from this Rs.20,000/-
will be exempted under the head u201C Infrastructure Bond u201C. When we
process the payroll for the employee the system is calculating a sum
of Rs. 1,12,822/- as tax exempted under chapter VI. System is
considering the P.F. Contribution of the employee additionally.
Can anyone guide me to solve the issue
NasimSolved by myself
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Income tax is not calculated After Total Income
Dear All,
I am running my payroll but my Income tax is not calculating properly because when am seeing my log then i find my total income is calculated properly but after that my STANDARD DEDUCTION is not been happening according to the rule if the employe is men it should be deducted 150,000 but it's not happenings . In payroll log where i can see the this (STANDARD DEDUCTION)amount because am not able to find how much deduction is happenings.My employe joining date is 01.05.2009
I am giving my salary components.
Basic-19500
HRA-13650
Performance-15000
LIC(IT0586 80C)-35215
Tution Fee(IT0586 80 C)-16800
Calculated PF-2340
CAlcualtion is done on the basis of 11 month
Gross Salary 529,650.00
Exemption U/S 10 107,250.00 (HRA Annual Ex)
Balance 422,400.00
Incm under Hd Salary 422,400.00
Gross Tot Income 422,400.00
Agg of Chapter VI 77,755.00
Total Income 344,650.00 (Till Here Every thng is fine From the next level am not able to identify how much and which basis MY Standard deduction is calculated)
Tax on total Income 52,395.00
Tax payable and surcharg 53,967.00
Income Tax 4,906.00
Kindly help me to resolve this issue am not a functional guy.
Thanks
SandeepDear Siknder ,
I alredy check in it0002 it male.
I want to know how should i check in my payroll log what calculation is happening after my total income get.
And also how i can identify which finacial year calculation is been performed.
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