Income tax provisions

hi experts
as per my client requirement, i am want customize whole setting of income tax . as like income tax provision.but i have no idea .
how to configure it and where in sap i configure whole setting of income tax.
pravarshan.

hi
sai krishna
i want to customize TDS on salary provisions, or computation of income ,and income tax provision for individual as per my
client requirement .
Thank your
pravarshan.

Similar Messages

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 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.
My question is that according to SAP if an employee dont have PAN no. because of non availability of taxable income than 20% flat tax would be applicale for him/her or not?
If yes pls guide me how to map that kind of scenario in sap.
I am maintaining following notes.
1568264
1558465
1572614
1575366
Pls treat this on high priority
regards
sachin

Hi Sachin,
Please go through the below circular:
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.
4.8.2 The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS . This section applies to any person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVII-B of Income Tax Act. As chapter XVII-B covers all Payments including Salaries, Salaries are also covered by Section 206AA. In case of salaries there can be following situations
a) Where the income of the employee computed for TDS u/s 192 is below taxable limit.
b) Where the income of the employee computed for TDS u/s 192 is above taxable limit.
In first situation, as the tax is not liable to be deducted no tax will be deducted. In the second case, if PAN is not furnished by the employee, the deductor will calculate the average rate of income-tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to deducted at the average rate. Education cess@ 2% and Secondary and Higher Education Cess @ 1 % is not to be deducted, in case the TDS is deducted at 20% u/s 206AA of the Income-tax Act.
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.
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 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
payments through offcycle payroll run. This document explains how this can be achieved
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 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.

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

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

Income tax deduction

Hi,
We are facing the following issue:
When employee is locked say in the month of November and then in the
month of december when the locked is release and the payroll is
processed normally, the net tax payable by the employee is deducted
fully and does not get pro-rated.
For eg: if the net tax payable by the employee is 16043, then when the
payroll is processed in the month of December, the income tax should be
16043/4=4010.75, but it is deducting the full 16043 as income tax.
cheers,
Ayyaps

Hi,
In your thread you have mentioned that the payroll was blocked for the month of Nov and was run on Dec which triggered Retro run.
Kindly note that if the payroll was blocked for Feb and was run in Mar then the tax effect will be the same as you mentioned.
Also please mention the values of below wage types for the month of November and December
/450 Tax payable and surcharge
/456 Tax deducted so far
/458 Net tax payable
/460 Income Tax
Thanks and Regards
Kiran

Income tax dedcution is not taking place on medical reimbursement .

Hi SAP-HR Experts .
I am facing a issue that for few employees Medical Exemption for incomeTax is not taking place for few employees ,
like upto Rs. 15000/- amount annually are exempted for Income Tax .
a employee whose exemption is taking place /3m1 wage type generated , while for those employees for which exempted for Income Tax in not taking place /3m1 is not generating .
IT-589 is maintained , and having amount 2MER(Medical reimbursement wage type) .
IT-267 is also having entry for Off-cycle Payment .
Emp X , having IT-589 , 2MER : 16,200 , for the duration of 01.04.2008 to 31.03.2009
for the month of May-2008 , He claims Rs. 1395.00 .
He has both wage types 2MER = 1395.00 and /3m1 = 1395.00 .
Employee X is correct case .
Emp Y : is wrong case where tax exemption is not taking place .
having IT-589 , 2MER : 30,600.00 , for the duration of 01.04.2008 to 31.03.2009
for the month of May-2008 , He claims Rs. 2086.00 .
He has both wage types 2MER = 2086.00 and /3m1 is not here .
what is required in ordfer to correct this wrong case (Employee - Y) .
Thanks & Regards : rajneesh

Hi Sikinder.
I have checked the Log of payroll both Correct case 'Emp-X' and wrong case 'Emp-Y'
Both emps are of same department and same location .
incase of Emp-X , Payroll-function INMED generates /3m1 wage type
while in case of EMP-Y it is not generating .
Why this is happening and how to correct it ?????.
Regards : rajneesh

Income tax provisions

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