Income Tax Problem

For One of the employee we forget to maintain the PAN number and ran the live payroll,Due to some resons we paid salarys manually with income tax is zero (ie out of sap). Now we ran the all 4 months live payroll in sap system it shows calculation the income tax 4,000 for july month and remaining 3 months we maintained volantary income tax zero
Now we want to make that 1 month Income Tax 4,000 become Zero(because as we paid that manually as zero) so what to do please guide me?

Hi,
As you aware If PAN number not updated straight away System needs to deduct 20% of Incometax of Total Income even employee not comes under any slab..
How your suggested wrong practice against legal procedings. If it is noticed to IT Dept You will not suffer, Your client will suffer my dear.
Second you told due to some reasons salaries paid out of SAP.. Then why your not suggest as Advance salary which is paid Out of SAP. After that you can deduct from Employee salary when live run processing. SAP provided Volutary Income tax wage type using for such conditions. We are all suggesting these scenarios without knowing Incometax rules which is integrated with SAP
Anyway better Enhence rule "INVT" for future issues.

Similar Messages

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 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,
Pratik

Hi,
I am not understand your problem give your mb then i talk to you
mhpo

Value-added tax problem about free goods!

Hi All,
I've got a value-added tax problem.....
Can anyone can come out with a solution.
Here is the Business Scenario....
One product company offen give some free goods to its customer company for test or probation. In pricing, the free goods have no income so that the value-added tax is zero, but by the law, the product company must pay the VAT(value-added tax) base on the cost of the free goods.
How to implement this in SD R/3 Scenario...
Can any one of you suggest me a solution for this plz..
Regards,
wang-yuzhen.

Hi,
You need to bring in a consition type "VPRS" in your pricing procedure. The VAT will be determined based on this condition type. VPRS is a statistical condition type. That means eventhough it appears with a value it will potentially not be displayed in your invoice. The invoice value will be 0 and there will be no account posting for this condition type

Income tax is not generating on Bonus for second time through off cycle

Dear All,
I have an issue related to bonus. We have given bonus off cycle in the month of August 16th income tax was deducted on bonus amout. Now again mgt is giving bonus through offcycle in the month of November 10th but the problem is Income tax is not getting calculated in this month for bonus. We have checked the calculations every thing is fine.
We have created 1 wage type for 1st time bonus as Special Bonus and 2nd time we have created another wage type as Diwali bonus. We have done configuration same as 1st wage type special bonus for Diwali bonus wage type.
Let me know where it went wrong.
Rgds,
Prasad

Hi Narendra,
Thanx for the response, i tried the above but not generating WT/460. can you explain the logic.,
Changed BON5 to BON3
created new Tax code ZTDR from STDR
Assigned Bonus WT ( in 0267) to ZTDR in Table T7INT9
didn't understand why /401 or MTDR or 9TDR
Thanks
Sanm

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

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

/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 Depreciation-India

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
Sunil

Dear Ramesh,
   Thnx a lot it has worked and my problem has been solved.
Regards
Sunil

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 Shrisunder

Hi 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

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 depreciation in india

Dear All,
How do we adress the income tax depreciation in India.
As we know the depreciation treatment for Income tax depreciation is a block concept...how do we adress that...
Could any one explain elaborately if possible...short and precise inputs are also most welcome...
Please help to resolve the issue
Sapfrido

Existing group asset concept for income tax depreciation functionality was withdrawn with Note 738919.
Following limitations/restrictions are there in the existing process.
Limitations of Group Assets
Locking
Cap on the volume of transactions u2013 99,999
Limitations of Report J1IQ
Opening Balance Calculation
Depreciation Calculation for Assets acquired and Put to use for less than 180 days
Depreciation Calculation for different fiscal year variants
Assets Acquired and Sold in the same year
Asset Block Retirement by Scrapping
Asset put to use date capture
Report Formatting Issues
The solution for IT Depreciation Calculation is being revamped and the new solution shall be available in EhP5.
If you have further query about new solution better to contact SAP by raising the OSS message by using component -XX-CSC-IN-FI

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 Problem

Similar Messages

Maybe you are looking for