Income tax computations

Dear Gurus,
Last month (June) we have deducted the Income tax through MVT1 wagetype for all the employees .As the master data has been changed for the previous month , so when i executed this month payroll with standard INTAX, system is triggering the retro. In case of retro system is genrating only /460 not /4MT
When i posting the results, system is showing that posting balance is not cleared for the month of june.

Hi Jeet,
Please provide the format to the abaper who can create the same in smart form and then assign this to a communication type.
Regards.
Vikas.

Similar Messages

  • 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 salary

    Hi 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

  • 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,
    Ritu

    Hi 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

  • Income Tax/Annual Perk Computation for rehired employee is incorrect

    Hi All,
               One of our employees retired on 30.9.11 was rehired on 30.11.2011 with the same employee number.  After rehiring we had delimited  IT 581 up to 30.9.11 and further a new entry was maintained from 1.12.2011. In the salary slip for Dec 11, in  the Income tax yearly computation six months Rent has been deducted from the Annual gross, which is not required.
               Kindly suggest how this issue can be rectified.
    Sunil

    Hi All,
        I raised an OSS for the issue. SAP support has provided me with a solution. The  steps are as follows:
         1. When rehiring period split for payroll accounting indicator in view V_T530_All  is to be set  for the action type and action reason which you use.
          2. Run the payroll for this person by doing force retro from 01.04.2011. With the force retro, /460(Income Tax for the month) will not change but the projection and all the other things will be changed.The pay slip will not change as pay slip checks the specified month data. But Form 16 will show the correct values (the total amount will be displayed in the Form 16).
          3. The following SAP Notes will have to applied for generating Form 16 correctly:
              1607827
              1614257
              1615579
              1679799
    Regards
    Sunil

  • Tax computation in case of varibale income

    Hi Experts,
    I have a tax scenario wherein client computes taxable income of employee at the start of the year  Now when they pay salary arrears (salary increment) to employees in novemeber/december they want that tax should not be calculated on the cumulative amount of salary for that month but tax liability of employee should be spread across the remaining periods of the year and tax should be accordingly calculated.
    As i understand in sap tax get's deducted on the amount for a particular month (Variable + fixed). If the amount for a particular month is high for any reason then tax get's deducted accordingly for that month, the tax liablity does not get spread,
    Ex:
    Employee fixed monthly payment
    basic - 27580
    hra - 5516 (rent exemption - non metro)
    Employee variable monthly payment
    conve - 2713 (conve reimbursement - totally taxable)
    savings
    Agg of Chapter VI - 10000
    conv exemption  -  2713 (monthly)
    Income Tax coming - 653
    Now if in October he get's salary arrear of 100000 will system deduct tax as 30% for that month and change Income tax for that month (653/-) to any other amont (30% tax ded for that month) or will the system spread the tax to other month's and calculated tax accordingly.
    Thanks so much for all the help extended.
    Regards,
    Jyoti

    Well Jyoti, you are actually getting confused with the tax concepts for India -
    Let me explain it in brief -
    Whatever income employee will get in whole year, it will be keep on adding up and accordingly tax will be calculated as per the slab. Here we divide the income into 2 part that  is regular income and irregular income.
    Since the taxation for India is annual, regular part needs to be projected for the rest of year to get the estimated annual income. It is based on the formula -
    Year till date value of regular income (CRT value of /124) + current month value + current month value X projection factor(/401)  - this is calculated and stored as wage type /410 in system. As you know /124 generate based on cumulation class 24 and processing class 20.
    Irregular income based on formula -
    Year till date value of regular income (CRT value of /125) + current month value - this is calculated and stored as wage type /411 in system. As you know /125 generate based on cumulation class 25 and processing class 20.
    After that we get all the exemption etc and finally generate the taxable income on which slabs are applied and deducted accordingly. This taxation will spread uniformly throughout the year subjected to the active status of employee. - This is just to make you understand that how regular and irregular income plays an role. I am also not explaining the rest part as i feel that is not the part of problem here.
    There are 2 type of processing possible for taxation of arrears in India provided by SAP-
    1. You just add in simply into /125 wage type as it is a irrgular income. Accordingly it will be cumulated into /411 and will be considered for taxation. Here as you are not treating the arrears differently, taxation will spread uniformly here.
    2. Now If you want that taxation on arrears/ bonus happens on the same period of the whole amount, then you will be required to configure INBTD for the particular payment (Check the documentation for the details).
    Hence if you are not configuring INBTD then tax will spread uniformly for rest of the year.
    Let me take some of your example to make it more clear -
    Annual Gross - 397152
    Income under head salary - 356075
    Total income - 256080
    Tax on total income - 7608
    Monthly tax - 653
    Employee monthly salary April , May, june, july - 35269 (tax 653)
    Salary Arrears /Leave encashment Aug - 2 lac
    So for the month of Aug what will be his taxable amount , will it be 235269 * 30% or will the tax amount for Aug be spread over to coming months (sep, oct, nov, dec, jan, feb, mar)
    Here till  july it is correct. But after getting arrears, calculation will happen like this  -
    Total income in month of aug - 256080 + 200000 = 456080 (Note i am not considering exemption etc so may be the amount vary lil bit).
    Tax on total income= slab rate applied on 456080.
    tax deducted till date = 2612
    tax remaining = tax on 456080 -2612
    tax for aug month = tax remaining / 8.
    Prerequisite is you need to tick cumulation class 25 here and also need to set processing class 20 accordingly.
    Now suppose you are configured the INBTD for this 2 lac payment then calculation will hapen in following way -
    Tax calculated on 200000 = say 30% slab applied then 66666. This processig will happen in INBTD.
    But astill this amount will be cumulated into /125 and accordingly into /411.
    Total income in month of aug - 256080 + 200000 = 456080
    Tax on total income= slab rate applied on 456080.
    Remaining tax =  Tax on total income (calculated in previous step) u2013 66666 u2013 2612
    August part of this remaining tax = Remaining tax  (calculated in previous step) / 8.
    Total tax for august = August part of this remaining tax (calculated in previous step) + 66666.66
    This is subjected to the total tax liability. IN your case tax liability may not reach at 66666. Then tax will be adjusted accordingly.
    Since you are not using INBTD, it will not have any impact on your calculation. Hence the remaining tax including all the income will be uniformly for the rest of the periods
    I know the answer become bit lengthy but hopefully will clear all your doubts
    Edited by: Praveen Tiwari on Jul 7, 2011 12:26 PM

  • Issue for Form 16 and tax Computation on Salary to Employees

    Dear All
    Can Anybody suggest a way out for the following -
    We have to issue form 16 as per Indian income tax laws to employees. is there any method for computation of tax on salary or any development is required for the same. As per the Indian income Tax law a computation sheet is to be issued to an emmployee wherein his actaul salary earned ( say for two months) plus his estimated salary for remaining 10 months is to be given and employee in turn returns back the form duly signed in. how this computation sheet works in SAP ?
    Pl guide.
    Regards
    Rakesh Choudhary

    Hi Rakesh,
    this computation happens inside INTAX payroll function for India Payroll. ya its true that there is no standard SAP report to do this. But u can all the annual computation wage type in the RT (/4** wage types).
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    Praveen
    Edited by: Praveen Kr Tiwari on Apr 11, 2009 3:30 PM

  • 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.
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    I am maintaining following notes.
    1568264
    1558465
    1572614
    1575366
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    regards
    sachin

    Hi Sachin,
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    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.
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    Regards
    Raviiii

  • 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.
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    Regards
    Sudhir Shrisunder

    Hi Sudhir,
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    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.
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    Regards,
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  • Canada income tax return - do i need to file?

    Hi there,
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    thanks!

    You got two strikes against you here, one as you note this is a developer forum not a tax assist one and two you're Canadian so you tax laws are going to be different from the majority of users here.
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  • Income tax provisions

    hi experts
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    pravarshan.

    hi
       sai krishna
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  • Income tax issue for mid month joinees

    Issue 2:
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    Employee X,
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    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.
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    Thanks and regards
    Mohan .V

    Hi 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.
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    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.
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    Please give me some solution
    Thanks and regards
    Mohan .V
    Edited by: mohantamilan on Sep 26, 2011 2:52 PM

  • Income tax is not calculated After Total Income

    Dear All,
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    Performance-15000
    LIC(IT0586 80C)-35215
    Tution Fee(IT0586 80 C)-16800
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    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
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    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
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    Sandeep

    Dear Siknder ,
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  • Income tax amount not coming is payslip

    Dear Experts,
    In remuneration statement the income tax amount is not appearing in deduction window, but where amount is getting deducted from earning.
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    Ex:
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    Deduction 2000
    Net is appearing as 26500. Which is wrong
    the wage type /460 is been maintained in pay slip,
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    Since it is month its an important one.
    Thanks and Regards

    there must be some other salay component which is getting added up in the gross.
    also, check the processing in RT for the cumulative wage types.
    Regards,
    Shruti

  • Income tax depreciation in india

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    Existing group asset concept for income tax depreciation functionality was withdrawn with Note 738919.
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    The Tax caluculation will taken care by the Funtion INBTD Kindly Check that one
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    Go to PE01  Give IN00 Schema in that go to INN1  Sub Schema in that Select INBTD  press F1  you will get informatiion on the bonus
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