Wrong calculation of Income Tax
Hi Experts,
We found some calculation error in SAP while calculating income tax
for this f.y. 2010-11. We had entered Rs. 1,03,462.00 in infotype
u201C586u201D for employee code u201C xxxx u201C . As per rule under section 80C
maximum exempted amount is Rs.1,00,000/-, apart from this Rs.20,000/-
will be exempted under the head u201C Infrastructure Bond u201C. When we
process the payroll for the employee the system is calculating a sum
of Rs. 1,12,822/- as tax exempted under chapter VI. System is
considering the P.F. Contribution of the employee additionally.
Can anyone guide me to solve the issue
Nasim
Solved by myself
Similar Messages
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Function module for calculation of Income Tax
Hi Friends,
Please guide me any function module which calculates income tax.
I have total income with me.
I want to know the :--
-->tax on total income,
-->education cess 3%,
--> Tax payable, less: relief under sec 89,
--> Final tax payable
Thanks & Regards,
ShivaniHi,
Refer below link
http://help.sap.com/saphelp_470/helpdata/en/0d/bec6ba2cec4cf69e9ba5b43dbec440/content.htm
thanks,
venkat -
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. -
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
BMSDear 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 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
SandeepDear 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. -
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
RagavanHi,
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 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,
PratikHi,
I am not understand your problem give your mb then i talk to you
mhpo -
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
VishHi 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 -
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,
RituHi 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 -
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 -
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 -
Indian Income Tax Depreciation Calculation
Hi
Can any of you please explain/tell me where are the exact SAP configuration settings for the calculation of depreciation calculation as per Indian Income Tax Act by meeting below requirements as per Section 32 of Indian Income Tax Act:
1. If the Asset is being purchased and used in a Financial Year for 180 Days or below 180 Days - Depreciation has to be calculated 50% of Annual Depreciation.
2.If the Asset is being purchased and used in a Financial Year for more than 180 Days - Depreciation has to be calculated 100% of Annual Depreciation.
Waiting for your valuable reply.
Thanks and Regards
P.V.S.R.GuptaBut if I follow your suggestion of taking Period Control Method 04, it would calculate 1/2 Year Depreciaton only
No. If the asset is in use for >180 days, then it's acquisition date must therefore occur in periods 1-6 which will set the depreciation start date to the beginning of the year. This will result in a full year's worth of depreciation.
If the asset is in use for <180 days then the start date is set to mid year which results in only 6 months worth of depreciation to be posted.
All of this can be adjusted per your FYV and on a yearly basis if the FYV is year dependent in the asset period control calendar assignments table.
I'll be the first to admit that I don't know the statutory requirements of India but I know how FI-AA works and can't think of an alternative solution for you.
-nathan -
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 ShrisunderHi 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 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,
PrasadHi 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 -
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
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