Income Tax Increasing each Month

Hi All,
While running Payroll. In June 2011 the Income Tax is 1480/- INR, While we run for July its become 1538/-, in Aug 2280.
Income Tax is Increasing each Month.
I am not aware why this is happening.
Need Help.
Thanks and Regards
Ravi Narayan Padhi
Edited by: Ravi Narayan Padhi on Mar 5, 2012 10:24 AM

Hi,
Might be maintaining every month Other additional Irregular wage type?
Check employee Earnings Specially Irregular payments such as Over time, Comp off compensation etc.
Or Do have written Any custom rules for Cummulation. those cummulation amount adding every month to taxable income.

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Is this how to treat your loyal customers !? (Massive increase in monthly charges!)

So I've been with Verizon for 2 years now and my services are up for renewal.
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OK.. I'm thinking of taking this further as surely this is false advertising !
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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

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/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,
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      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
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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

Info type and subtype to stop income tax deduction for a month

can i know how to stop income tax deduction for a month for a specific employee. I understand that this s possible

Hi
You can use additional wage type (infotype 0015)
and subtype voluntary tax std is MVT1 as per SAP
if you maintain 0.01 value here and indicating the month
SAP calculated income tax is supressed and this is how u can stip income tax deduction for a month
with regards
partha
keep sharing and learning

I've just about had it. Bill keeps increasing by about 30 PERCENT each month!

I don't freaking understand this company. I bought what I thought would be a simple plan. Internet, and a cell phone. I understood that my second bil would be more then my first due to some adjustments, but $359 a month?? Every time I get a bill I get a note on it stating that there were changes made to my plan so there are extra charges. I've only made one change in about four months. This is just absolutely nuts. If this keeps going (and it wont cause I'm cancelling this insanity) by next month my Verizon bill will be more then my rent. I can get the exact same service through my regular phone provider and pay $200 less a month. How does this company stay in buisness like this?

I will call customer service as soon as I simmer down a bit. I think that I have the all in one plan. I get 8 gigs a month that is shared between my internet and phone. I haven't gone over this limit yet.
In Septemember I was late with my payment (wasn't working) and my line was disconnected. Eventually I paid everything that was due and I got reconnected. At that time I paid a reconnection charge of about 15 dollars, and my account stated that I was paid in full.
I did not get any notice stating that this reconnection was going to cause any changes to my plan, or anything that would indicate that my next bill would be twice as much as it should be.
This is my monthly billing:
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Payment Method
Amount
10/04/2012
CREDIT CARD
$279.27
09/06/2012
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CREDIT CARD
$96.58
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/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

URGENT:Income Tax Problem in Payroll

Hi dear friends,
when India payroll is run the Conveyance Allowance is not considering for Income TAX Exemption.
I had assigned the TAX Code correctly with limit 800 per month.
When i check the technical Wage Type /130 ,it contains only HRA amount which is having tax exemption.
My conveyance allowance Wage type is in IT 0008.
I am struggling with this problem @ client location.
Please give a help by checking out this problem
<b>Wishing you all a Happy X-Mas and Prosperous New Year
Regards</b>

Hi Abhilash,
Please check the following tables.
1. V_T7INCA----
Conveyance Types.
2. V_T7INC9----
Conveyance Allowance Eligibility. Here You need to assign
                             Grouping for Allowances for each Conveyance Type and WT
                             for Conveyance.
3.V_T7INT9----
Taxability of Wage Types. Here You need to assign the
                         Conveyance WT to Taxcode SCNV with Exemption amount of
                         Rs 800 and Tax Type is 'Tax amount is Limit Based' and
                         frequency is 'Monthly'.
4 You have to maintain table V_T7INA9 with that WT.
Try with this.....
Good Luck
Laxmi

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.
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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.
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,
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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..
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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 calculation

Dear All,
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
BMS

Dear 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.
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BMS

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.
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Ragavan

Hi,
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Would appreciate if you can share how you went about it.
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Income Tax Increasing each Month

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