Tax Exemption on Petrol Reimbursement in payroll India

[Former Member]

Dear Seniors,

I have created wage types like,

Uniform Reimbursement

Petrol Reimbursement

Driver Salary Reimbursement,

These are monthly salary components (paid monthly),

My requirement is, amount of these wage types should be non taxble if employee submit bills.

Example: Petrol Reimbursement monthly salary component is Rs.10,000 so yearly it will be Rs.1,20,000.

If employee submit bill of Rs. 20,000 in the month of June then this 20,000 should be non taxable.

Same with other two wage types.

pls let me know how to map this in system.

with regards,

Ramesh

[Former Member]

Hi Ramesh,

You have to un check the Cumulation class-24 ( Monthly Regular income) , For that particular wage types
In V_512W_D Table.

Just try it , will work

Regards

P.N.Reddy

[Former Member]

Dear Reddy,

This wage type is monthly regular payment,

Dear all,

PFA the PC, CC, EC forthis wage type,pls do let me know is any thins is missing.

Pls also refer my above mentioned query.

I have mentiained IT 589 for limit of reimbursement and when Imaintain IT 582 that amount is not being exempted from total gross salary for taxation.

with regards,

Ramesh

[Former Member]

Hi Ramesh,

In your PCR change the para 3 to A from R. from which info type this WT 1024 is giving ?

No need to create IT 0589, and please share your salary slip for better understanding. Are you using Remuneration statement PE51. if so please add this wage type in the window 7.

Best Regards

[Former Member]

Hi Praneeth,

I have changed R to A in para 3 in ZNN1 sub schema and also made this wage type 1025 as allowance in RAP, but then also amount mentioned in IT 582 is not been exempted from tax.

regards,

Ramesh

[Former Member]

Hi,

Create one wage type copy of MCAX, and assign that WT in the schema

Add this created wage type in the Remuneration form in window 7.

[Former Member]

Dear Seniors,

PFA the process what I have done till now, and guide me guide me to achieve desire result.

regards,

Ramesh

[Former Member]

Hi Ramesh,

do what i suggest it will solve your problem. if you give some screen shots it is easy to suggest you.

you can't give same wage type as earnings and exemption in the salary statement.

[Former Member]

Sry Praneeth,

I can't upload more than 3 attachments, pls check my previous replies I have attached all screen shots, pls check and guide me.

with regards,

Ramesh

[Former Member]

Hi ramesh,

already checked those screen shots that's why i asked you to create new wt and assigned in the schema and same wt in the remuneration form.

WT characteristics are different for the Earnings and Exemptions.

Best Regards

[Former Member]

Hi Paneeth,

sry can you pls elaborate.

rgds,

Ramesh

[Former Member]

Hi,

Create a new wage type 9999 copy std wt MCAX

in the schema para 2 assign this wt 9999

In PE51 window 7 add this wt 9999

Best Regards

[Former Member]

Hi,

create wage types and pay with infotype 8 or 14 assign in table T7INA9 make them reimbursment ,,,,,,and create tax code for these wage type in table series T7INT5,7,9 here set the assign tax code with wagetype.

you have to assign this tax code with funtion INCTX in schema...

when ever employee submit bill you have to maintain 582 infotype..

and you have to set limit in 589 infotype... then you achieved the results..

here no need of running remp,rems.. programmes because this payment component is monthly for employee............

[Former Member]

Dear Ali,

Can you elaborate your explanation pls.

regards,

Ramesh

[Former Member]

hi,

take a wage type 1234 then T512Z permisibility for I.T 0008 or 14 and 511_b PS ESG permisibilty.

then got T7INA9 1234 reimburstment

then got T7INT5 to create tax code for uniform reimbursment eg UNTAX

assign this tax coed to 1234 wagetype in T7INA7 table and say exemption limit if any are they and set as deduction carryforward or no need

now go to schema and find INCTX function ..and maitian wagetype with INCTX

eg:-

para1     para2

INCTX    1234 uniform reimbursment

INCTX     4321 petrol reimbursment

now assign this wagetype to employee in i.t 0008 then maintain 589 with tax code here you can set maximum exemption limit , when employee submits the bill you have to maitian 582 with bill amount

[Former Member]

Dear Ali and other seniors, Sry for the late reply on this thread, I have followed all the steps mentioned by Mr.Ali, pls find the screen shots, after all this configuration, when I mentioned uniform reimbursement amount in It 582 that amount is not being reduced from total gross amount. I will repeat my requirement, I have monthly regular earning wage type as Uniform Reimbursement, this amount will be tax exempted when employee submit bill, employee may submit bill as an when purchase uniforms, he may submit bill every month or he may submit once in six months or once in a year when ever he submit bill he will get exemption of that amount (not more than amount received from salary). If employee does not submit bill all earning against that wage type will be taxable. Pls guide me if I am missing some configuration or any master data maintenance is wrong, with regards, Ramesh Thalbavadi

[Former Member]

Contd

[Former Member]

Dear Ramesh,

Please follow the link below.

Thanks,

Santosh

[Former Member]

Hi Santosh,

My requirement is for Reimbursements,

I hope allowance and reimbursements both are different,

Can you pls explain me on this.

regards,

Ramesh