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Tax on Leave Encashment

former_member246191
Participant
0 Kudos

Dear Experts,

Tax amount is not getting calculated for leave encashment.

Please let us know how to resolve the issue.

Have a nice day.

Regards,

Sriram

Accepted Solutions (0)

Answers (2)

Answers (2)

leelamohan_kavali
Active Contributor
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Dear Sriram,

Hope below links may help to you

venkateshorusu
Active Contributor
0 Kudos

Check the wage type attributes clearly and check V_T7INT9 table what is the tax limit, code against to wage type and check the processing class 71 with specifications from table V_512W_D accordingly you change them as required.

Regards

Venkatesh

former_member246191
Participant
0 Kudos

Dear Venkatesh,

Tax code is SLEA in table V_T7INT9 , tax limit is 0 where tax type is based on the rule tax exemption is limit based. Processing class 71 in V_512W_D is blank.

Please let me know how to resolve?

Regards,

Sriram

venkateshorusu
Active Contributor
0 Kudos

Okay then check the cumulation class  /124 or /125 from table V_T512W_D whether it is checked or not if not according to requirement maintain /124 or /125 then check.

Regards

Venkatesh

former_member246191
Participant
0 Kudos

Checked the cumulation 28 Leave encashment basis for /125, but its not working

Regards,

Sriram

venkateshorusu
Active Contributor
0 Kudos

Where exactly you are checking whether tax is getting deducted or not and whether you have included wage type in the payslip or not.

Regards

Venkatesh