Tax calculation issue - India

[Former Member]

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 · Accepted solution]

Hi Shyam,

Check the Off cycle TDS percentage in V_T511K.

As per your client requirement, it seems that TDS should be 30% on 3,09,488/-.

If you change the TDS percentage in this table you can get the desired amount.

Regards,

Navya

[Former Member · Accepted solution]

Hi Navya,

As you said TDS is showing 30% in the table.

But SAP is not calculating 30% correctly. Plz check the output that sap is giving in the points as I mentioned above.

Advice me something plz

Regards,

shyam

[Former Member · Accepted solution]

Hi Shyam,

Check the entries once.

If you are running Bonus through Offcycle the entry in the table should be BNTDS Bonus Payment - TDS % 30.00.

Regards,

Navya

[Former Member · Accepted solution]

Nivya,

The BNTDS - Bonus Payment - TDS % is showing as 30% itself.

Is their any place where we can the constant value.

Regards,

shyam

[Former Member · Accepted solution]

Shyam,

Also check the BNXPR Bonus-Maximum %. But I am not sure about this.

Please let me know if you get any solution.

Regards,

Navya

[Vivek_V · Accepted solution]

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

[Former Member · Accepted solution]

Hi VK,

Thanks for your inputs.

By changing from BON3 to BON1 for the function INBTD in the schema, it is working fine.

Regards,

shyam.

[Vivek_V · Accepted solution]

please close the thread.

Thanks