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,
Madhu

Hi 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

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Salary & Income Tax Projection for Retiring Employees

Hi Friends,
We have a case where an employee is retiring on 14.08.2014 (which is his birthday also i.e. P0002-GBDATE = 14.08.1954).
When we executed payroll for this employee in the month of July 2014, the system deducted income tax as per the slabs for a senior citizen (as Union Budget 2013-14, current year budget changes have not been incorporated).
The company wants the employee to be considered as a 'normal citizen/person' and not as a 'senior citizen' until his date of retirement or during the tenure of his employment.
What can be done to resolve this issue?
We are using
Actual Basis for Projection of Salary and Income Tax
Date Type 'N0' in IT0041 (Date Specifications)
Please suggest something.
Regards,
Kumar

I have personally checked this, as facing the same problem. AND THIS IS WORKING, THANKS FOR THE INFORMATION.
HOWEVER THERE IS ANOTHER SOLUTION ALSO.
One can create an retirement action, which has to be executed for all the employees going to retire during the year.
system will calculate the gross and project the tax only upto the retirement date.
if exttn is required you can also config the retirement-exten action in case of extension is carried out.
Rather than touching the standard scheme this is the best way I know? you can also fetch the reports in the future with the help of standard reports.
However, if anyone is having any PCR idea, that is also welcome. Do give me a helping hand by share the same.
Edited by: virparkash on May 23, 2011 1:19 PM

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 Kurada

Hi 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 Projection for Retiring Employees

Hi Folks,
One of our Employee is getting retired in the month of August, As per SAP,In April-2009 his IT projection happens for the entire financial Year April to March 2010.
That is his IT projection for APril to March is 5Lakhs, but his actual earnings from April to date of Separation (till august) is 3.5 Lakhs, because of this his Tax liablity from APril to July goes high and in the month of August there is a refund.
Now for retiring Employees how can we make the IT projection happen only till the month of Retirement. Is their any standard process available or through custom development.
Experts Plz advice.
Rgds,
Sekar.

I have personally checked this, as facing the same problem. AND THIS IS WORKING, THANKS FOR THE INFORMATION.
HOWEVER THERE IS ANOTHER SOLUTION ALSO.
One can create an retirement action, which has to be executed for all the employees going to retire during the year.
system will calculate the gross and project the tax only upto the retirement date.
if exttn is required you can also config the retirement-exten action in case of extension is carried out.
Rather than touching the standard scheme this is the best way I know? you can also fetch the reports in the future with the help of standard reports.
However, if anyone is having any PCR idea, that is also welcome. Do give me a helping hand by share the same.
Edited by: virparkash on May 23, 2011 1:19 PM

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

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 .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.
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 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
Sandeep

Dear 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.

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.
As a result the earning minus deduction is mismatch, i.e. net salary is not correct.
Ex:
i.e. Earning 30000
Deduction 2000
Net is appearing as 26500. Which is wrong
the wage type /460 is been maintained in pay slip,
Value for /460 and /470 is not getting updated in RT table.
Where as value for /458 and /401 is appearing in RT table.
can any one share me your ideas where exactly the error might be or what changes to be done.
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 on off-cycle payment

hi all,
I m new to HCM , i have a query that if i want to calculate the income tax on the off-cycle (bonus) payment for that perticular one month not for the avg. of year , then what should be the changes i need to do and where..?? bcoz now its giving me the income tax for the whole year not for that perticular payment..
thanks in advance..

The Tax caluculation will taken care by the Funtion INBTD Kindly Check that one
and The tax is caluculated on the total gross payment includeing bonus amount
For information
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
and tax code we assign in the table V_T7INT9
try to give bonus for one period execute the pay roll and run the regualr pay roll for the next month and try to check the income tax caluculation along with the Gross Salary in Form 16

Income Tax Calculations

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
Ragavan

Hi,
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 amount adjustment

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

Income Tax Calculations 2008

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

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 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

/616 WT & Income tax issue

Dear all,
I face a serious problem: some PFs have income tax = 0 (their salary is taxable) while others are double.
I checked PC_PAYRESULT and saw that error come from WT /616:
At period 01.2011, in section 89, some wage types are calculated wrong
In-Year for Payroll --- --- --- --- For-Year for Payroll --- --- --- - Wage type- --- --- -- Amount
2011--- --- --- --- --- --- --- --- --- - 2010- --- --- -- -
--- --- --- - /6I2- --- --- --- ---    29,377.00-
2011--- --- --- --- --- --- --- --- --- -   2010- --- --- --- --- --- --- --- - /616- --- --- --- --- 365,713.00-
2011--- --- --- --- --- --- --- --- --- -   2010- --- --- --- --- --- --- --- - /650- --- --- --- ---   5,973.00-
I don't know why they come with a huge amount like this , but it causes wrong taxes and many problems for payroll in year 2011.
I checked many topics, but still can't resolve.
Add. gross salary in RT Table.
/616 Add gross salary Issue
Please help.
1. Why were these WT calculated with a huge Rs?
2. How can I fix this (Payroll already has ran for 5 months ago)

Hi,
the error is in which system.(PRD/QLY)
according to the first thread you have gone through check the control record dates and change it to 2010 xx period and try once.
if it is not giving any error then you can easily capture the solution why is it calculating so .
change the control record dates to 2010 and try..
or check the IT-0008 records are there any salary changes in past(salary Increased)
we have model wage types
M89G--/616
M89I--/6I2
M89T--/650 copy using this model wage types and balance the amount by giving in IT-0015 (deduction amount) and try...
hope this helps you
let us know the result...
Regards,
mohammed

Income tax gross salary projection

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