Ptax for Maharashtra wrongly calculation for march 2014

[Former Member]

Dear Expert,

I am facing problem for the P.tax calculation for the March month 2014.

I have check all the configuration, it is right,

Ptax deduction before March month, system calculate right but march onwards instead of 175 Rs, system took the 200 rs as ptax for all the employee who's salary 10000 or below 10000 rs.

I have check classes also, but still it is not working.

For your reference check screen shot.

Please advice me how to resolved this issue

Thanks

Urvashi

[Former Member · Accepted solution]

Hi,

Have checked the Ptax basis ?

Test run with log and check for INPTX how it is calculating 200/- for this march. and check any other payments are there, or leave encashments or yearly bonus, etc...

[Former Member · Accepted solution]

Hi Praneeth

I have check the Ptax basis, it is taking 10919 amount in /118 WT,

in /3M3 incremental WT also showing 10919, so system  taking basis amount for Ptax.

so can you guide me how to calculate only basis amount for Ptax for the march month.

Thanks

Urvashi Chaudhari

[Former Member · Accepted solution]

Hi,

/3M3 - Incremental Medical perk, is taxable.

if you don't want to add these amount in Ptax basis, check the CC classes and un-check. but it is depends on the client requirement. once confirm with client too.

please read this:

Incremental Medical Perk - Payroll India (PY-IN) - SAP Library

[Former Member · Accepted solution]

Hi

I have check /3M3  and it is already un-check in CC class

let me know any other solution.

thanks

[Former Member · Accepted solution]

Hi,

it is clearly stated that Incremental medical perk it is taxable, please go through the link given in the reply. see all allowances and re-imbursements are taxable, if client is not accepting this try to explain them with examples. examples are given in the link.

[Former Member · Accepted solution]

Hi,

Problem is resolved

Thanks for your inputs.

Regards,

Urvashi

[Former Member · Accepted solution]

Hi,

can you share the solution, how it is resolved.

it will help for any one who are dealing with same issue.

[Former Member]

Yes, we can restrict the same on PCR Level by deactivationg INPT PCR, but before that you cross-verifi with ur legal counsel for the same

/3M3 will calculate on med perk. chk out-

The medical perk should be included for the purpose of professional tax basis on an incremental mode.

The positive difference between the eligibility/allowance and rent in case of CLA/COA type of accommodation should be included for purpose of professional tax basis.

The medical perk and the difference in housing eligibility and rent are added to the basis of the latest state. This cumulation into basis happens before the deduction computation step and is being done through a rule.

Professional tax basis u2013 Comprises those salary components on which a professional tax is applicable. The salary components to be included for calculating the professional tax basis depend on the state. The different components are:

1.  Basic pay

2.  Dearness allowance

3.  Medical reimbursement perquisite

4.  Housing

5.  Profits in lieu of salary

6. Other remuneration that an employee receives regularly

7. Bonus

Medical Reimbursementu2013 The system includes the medical reimbursement amount which exceeds the amount exempt from Income Tax (as fixed under the Income Tax Act), as a part of the professional tax basis.

Housing Allowance u2013 In case of a company leased or a company owned accommodation, the system checks the difference in housing allowance and the rent. If you pay an employee the positive difference between housing allowance and rent, then, the system includes this amount for calculating the professional tax basis.

Bonus - If the employment is in a state that specifies bonus as a component of the professional tax basis, then the system includes the same for professional tax basis calculations.

I have got solution form deactivate the INPT PCR