Regarding Tax caluclation

[Former Member]

Hi ,

Employee declared income tax details em portal( client specific intranet) .that details hr will update in SAP .based on that income tax is calculating.

By January employee should give the profs to HR , based on declaration .If employee is not submitting prof on January we should calculate the tax on jan month payroll .

My question is , if employee didn't submitted the prof , where can change the data to calculate the tax .

Please guide me how to update in SAP ...

Thanks

Nandu

[Former Member]

ans

[Former Member]

I feel this query is specific to IT0581, IT0585 and IT0586 if it is for India (looks like India payroll only??). If this is the case then you need to do following -

1. There are 2 options for IT0581

Option 1 untick the checkbox 'HRA to be exmepted'. System will stop the exemption calculation.

Option2 :Chnage the record from 'House Rent allowance' to No accomodation effective from the 1st april. It wil try to trigger a dynamic action to IT0008 but don't change naything here. Now system will calculate tax on HRA.

2. For IT0585 and IT0586 - i hope at the starting for the FY you have updated only proposed amount in these infotypes and actual contribution will be 0 for this. Now since employee has not submitted the investment proof, tick the checkbox 'Consider actual contribution'. Since the actual contribution is zero system will stop calcualting the exemption based on proposed amount.

If this is not for India, let us know

[sikindar_a]

if the employee submits the proofs we wil maintain those details in Exemptions related infotypes in case if he has not submitted tax will be caluculated on the income right

so what else are u looking at for ?

[Former Member]

Beginning of the year no one can submit the proofs, all employees will declare the investment details right ..

based on declaration we maintained the data 585 ,586,581 .Than payroll start processing . on January HR will send mail to all employees to submit the proofs by end of the January .

Some employee didn't submitted the proofs .Already they got tax Exemptions on April to December .

Now employee didn't submit the proof , so i should deduct the tax on January month payroll. how to deduct tax on april month onwards .

for example

one employee declared the investment LIC :25000, CRY:500, donation :1000, housing loan :25000

we have maintained in info types .executing payroll on April onwards ,he is getting tax Exemptions .When HR asking to submit profs , he didn't submit the profs.

employee was in slab 20%(after declaration investment) , if dint submit the proof he will come under slab 30%.

How to do in SAP .Do I need to change the infotype dates ...

Please guide me .

Thanks

Nandu

[Former Member]

Nopes, all the computation are annual. So you just need to change the infotype as i suggested in last reply. Also note that IT0580, 0584, 0585, 0586 begin date and end date set as FY begda & endda and can not be changed in anycase (as system check the control record for the year and default it). So once you will make the changes, it will automatically try to adjust the calculation and remaining tax as per new calculation will be deducted in remaining 3 months.

For HRA, you can change the dates. But probably you don't need to do that that means you have to maintain HRA record starting from 1st april as emp has not provided rent slip.

Hope its clear now.

[Former Member]

Thanks a lot Praveen for prompt and quick reply ..

I will do testing than I will get back to you ...