Income Tax calculation in case of without Pan

[Former Member]

Hello Expert,

I have one issue i.e. system is calculating excess tax in case there in no pan maintained in IT 0185, and also there is

no check on Thresold limit... we are at patch level 68..

Please help how to avoid excess/average tax deduction..

Your reply is highly appreciated...

Thanks & Regards,

Pramod

[Former Member]

Hi,

As per the CIRCULAR NO.: 08/2010, F.No.275/192/2009-IT(B), Govt.of India, Minstry of Finance, under section 206AA If the employee's income is above the threshold limit (ie: 180000 for Men & 190000 for Women) then the tax is calculated either @ the rate of 20 % or at the average Tax rate which ever is greater on the total income.

Check for Circular @

http://law.incometaxindia.gov.in/DIT/Circulars.aspx

From your thread it is clear that you are in support pack 68. Hence the above corrections as per the note 1558475 is delivered in the patch level 68 for ECC 6.0 and already incorporated in your system.

Please refer the thread

Let us know if you have any further queries.

Regards

Raviiiiiiiiiiiiiii

[Former Member]

for clear understand,

u need to as masters said thru notes and V_T511K table constants PNCHK & PNRTE with documentations

It gives you clear information.

if you not maintaind the PAN card directly it will deduction 20% flat rate.

all the best

[Former Member]

hi

Please confim whether you have applied SAP note 1558475 (Amendments to IT calculation notified under circular:08/2010) in your environment . Further for tax deduction to non-furnish of Pan employees, please refer "Circular no.CIRCULAR NO.: 08/2010, F.No.275/192/2009-IT(B), Govt.of India, Minstry of Finance, under section 206AA, (Page no 8 of the circular)".

If still , there is in-consistency in tax deduction, please be communicated.

Regards,

[ravindra_bollapalli2]

iam also facing the same problem , after aplying the sap notes like 1572614, and manual changes n 1558465 it showing same

its able to deduction the threshold limit, and it getting as normal slabs

please advise

ravindra

[Former Member]

PAN number is mandatory for all tax payee effective from budget 2010. Hence if PAN number is available for the employee, there are 2 method in which tax will be deducted -

1. Whole amount will be considered as taxable amount and tax rate of 20% be applicable on that.

2. Whole amount - lower threshold limit = taxable amount, in this taxable amount the tax will be applicable with 20% tax rate.

there is a switch in V_T511K to activate one of these solution.

You can also check the relevant Note for the same in service market place.