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Tax calculation issue - India

Hi All,

We have an issue in calculating tax for India.

An amount of 3,09,488/- is paid to an employee thru Offcylce. The tax calculated for this amount from SAP is as follows:

/4MT = 90,142.09

/4MS = 9,014.22

/4ME = 1,983.13

/4MH = 991.56

But as per the client requirement, the actual calculations should be as follows:

/4MT = 92,846.40

/4MS = 9,284.64

/4ME = 2,042.62

/4MH =1,021.32

Plz anyone suggest whether SAP calculations shown above are right or not.

If it is wrong, plz advice how to correct it.

Helpful points will be rewarded.

Regards,

shyam.

Former Member
Former Member replied

In your INBTD function what Calculation Method have you defined? Check your schema. The following calculation method are there in the standard. You can choose one of these as per your requirement.

BON1

The function computes tax at a standard rate, which is applicable across the organization.

BON2

The function computes tax at the marginal rate of tax (excluding surcharge) of an employee, before the payment of bonus.

BON3

The function computes tax at the marginal rate of tax (including surcharge) of an employee, before the payment of bonus.

BON4

The function computes tax at the marginal rate of tax (excluding surcharge), of an individual employee, after the payment of bonus.

BON5

The function computes tax at the marginal rate of tax (including surcharge) of an individual employee, after the payment of bonus.

Regards

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