Excess deduction of TDS in Payroll - July-2013

[Former Member]

dear experts,

need urgent help....

In payroll processing for July-13, TDS on salary deducted
from April to June-13 is not being considered for Income Tax calculation of
employees. It is resulting in excess deduction of TDS in current month salary. PAN of all employees is already maintained in SAP.

please reply asap.

regards,

puja

[Former Member]

Hi Puja

Can you check any  retro is running  in backdates and check your /410 and /411 Amounts matching to /416 wage type

Thanks

Satish

[Former Member]

hi,

pls check attached screen shot Income tax deduction of previous months i.e. apr,may and june is not being taken into account.

System is showing zero in standard report

PC00_M40_ANN

also check below the screen shot values of /410 wage types.

/411 wage type is not shown in the RT table. Yes retro is being done as we have updated Infotype 589 and Infotype 8 of most of the employees.

regrds

[Former Member]

Puja  what is the values of below wage types for the month off july

1-  /434 Total Income 

2- /436 Tax on total Income

Thanks

Satish

[Former Member]

hi,

pls find below the screen shot of /434 wage , i could not find any record for Wage /436 in july payroll.

regrds

[Former Member]

Hi Above Screen shot /434 wage type showing 1.20 So employee is below taxable, Please fine the below formula for tax calculation

/416Total Allowances - Total Exemption = Gross Total Income /430

Gross Total Income - Investment Declaration = Total Income /434

Assume 5 18 930 is tax  as per tax slabs

Tax on First 1,90,000 = 0

Tax on 1,90,000 to 5,00,000 = 10% of (5,00,000-1,90,000) = 31000=31000

Tax on 5,00,000 to 8,00,000 = 20% of (518930-500000)=18930=3786

The total of 31000+3786 is the desired amount which u got

Thanks

Satish

[Former Member]

my question is why income tax deduction of april,may and june not taken into account ?

it is  displayed zero.

[Former Member]

Puja Above is the formula for tax calculation check in April  and other months ,

Please check you April month wage type calculation, if  /434 wage type amount above 2 lakes then tax will be applicable

[Former Member]

dear satish,

pls specify what is the value being assumed in above thread i.e. 5 18 930 is tax  as per tax slabs

how are your calculating above. i have understood your point as follows.

Tax on First 1,90,000 = 0(tax is 0 on 1st slab if income is <= 1,90,000)

Tax on 1,90,000 to 5,00,000 = 10% of (5,00,000-1,90,000) = 31000=31000 (tax on 2nd i.e. 10% slab if income is 1,90,000 to 5,00,000)

Tax on 5,00,000 to 8,00,000 = 20% of (518930-500000)=18930=3786 (tax on 3rd slab i.e. 20% slab if income is between 5,00,000 to 8,00,000)

c

i didn't understood the last point of Total amount, why are we adding 31000 and 3786. Is this logic aplicable to all employees ?

The total of 31000+3786 is the desired amount which u got

[Former Member]

Puja Keep it simple ...

Above is the calculation for slabs wise calculation,amount is 5 18 930 , so we are not calculating All amount 1 percentage , 2 laks to 5 10 %, and 5+ 20 %

10%=31000 +Above 5 laks 20% 18930 =3786

As far employee Total Income /434 we need to calculate % of amounts

This logic applicable to all employees