on 05-08-2014 1:03 PM
Dear Consultants,
How to increase the Exemption limit of Public Provident fund from Rs. 70,000/- to Rs 1,00,000/- under IT 586, In which table we have to do changes.
Regards,
Naresh
SAP note 1504343- PPF limit under section 80GG has limit of Rs 1lakh
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Dear Naresh,
This infotype keeps a record of the proposed and actual investments made by an employee towards Section 80C.
During payroll run, Section 80C tax deductions are made after checking the entries in this infotype.
Only one infotype record can exist for an employee for a financial year. When you are creating the infotype record, the system checks the payroll period from the Payroll control record. The financial year, to which this period belongs, will be defaulted in the infotype record. If you are modifying the infotype record, then the financial year, to which this period belongs, will be picked up for modification.
This infotype can be created/modified:
· At the beginning of the financial year
· When an employee joins the company
· When an employee changes his or her declarations of proposed or actual contributions
When you are creating the infotype, the following information will be defaulted in the infotype record:
· Investments/Contributions
This is the different types of Section 80C investments.
You will have to enter the employee specific information for Section 80C deduction:
· Proposed Investment
This is the amount that an employee proposes to invest. This could be done at the beginning of the year. It can be changed at any point of time. The payroll will read the latest entries and calculate tax accordingly.
· Actual Investment
This is the amount that an employee actually invests. When an employee shows the proof of investment, the amount is entered here.
· Actual Investment to be considered
You must select this indicator, if you want the actual investments to be considered for tax rebate. This is typically done at the end of the financial year, when the employees have produced the proof of investment.
If you want to calculate the tax for all or selected employees based on actual Section 80C investments, you can run the Batch Program for Section 80C (HINIS880) for those employees, instead of updating the infotype record of each employee.
The maximum amount on which an employee can get tax deduction is INR 1,00,000. This amount is the maximum deduction on both Section 80C and Section 80CCC.
If you run the Batch Program for Section 80C (HINIS880), the Actual Investment to be considered indicator in the Investment Details (Sec88) infotype (0586), will automatically get selected.
See also:
For more clarification kindly click on below link
Section 80C Deductions Infotype (0586) - Payroll India - SAP Library
Ur's
Mohan
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