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Income tax

former_member214675
Active Participant
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Dear all,

I have one different requirment were the emplyoee is deputed to overseas for more than 6 months he becomes NRI

so tax should not be deducted from him ,is any way we can stop calculation tax for an emplyoee in sap.

Regards,

Prince Elvis

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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I dont know which country you're specifically referring to but delimit all the tax relevant IT's for that particular EE from Master data.

Arti

Answers (4)

Answers (4)

former_member214675
Active Participant
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Dear All,

I want to change my req ,it is not for one emplyoee it is for group emplyoee.Adhi,how to assign the payroll area which should not be taxed .Thanx for all the response.

Regards,

Prince Elvis

sikindar_a
Active Contributor
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than

prepare a py area and assign that to ABKRS

and assign that schema with commented INTAX schema to that PY area

and assign that EG for the ABKRS feature

Former Member
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What AXE said ok if we do in other way around.

Create special payroll area without taxcalculations assign those employees that area.

Whenever that kind of employees come also we assign them to the PY area.

and run that payroll differently with modified payroll driver

May be it will work out.

Other we can hard code in PCR saying that these personnel numbers don't calculate tax. But hardcoding is not recomended. If the same happend to other members it wont work

Best Regards

Former Member
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Dear Prince,

Let me know, then how will you pay the employee. Did you run the Country Reassignement Action or Using MGE concept. If you use MGE, maintain the Infotype 701 to 715, which will take care of your local Payments also.

or

Change the Payroll Area from start of month, so that it wont pickup the employee during Payroll run.

or

As per the Income Tax Act, all the earnings are taxable, so if you pay the employee, he has to pay the tax. So, if it is compulsory to pay the employee in indian currency, maintain the clone Schemas, one with INTAX and another commented INTAX. so that you can select the commented INTAX only for this employee, during this six months.

Good Luck

Om

former_member214675
Active Participant
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Hi,

I am working in Indain Payroll , we have indian infotypes

say 580 -589 but we don't have any specfic infotype for income tax.So if u have any idea please tell me.

Regards,

Prince Elvis

former_member399211
Participant
0 Kudos

Dear Sir,

The solution for prohibiting income tax deduction is as follows:

1. Copy the Schema IN00 and create a Z-schema.

2. Comment the INTAX function in the Z-schema and run the payroll of all such employees through this Z-schema.

I hope this solves your problem.

Regards,

AXE

sikindar_a
Active Contributor
0 Kudos

dont comment on schema it is only for one employee not all

if u comment schema whoe employees will not get the income ax deductions instead of the try to not to maintian that records