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author's profile photo Former Member
Former Member

One time tax deduction

Hi,

Our client want to calculate one time tax on variable components. Around 10 variable WT’s are there.

Scenario is whenever employee gets lump sum amount on any of the variable component or components, tax should be deducted on that month itself for whole amount. The system should check the current slab and this value should be added to the current calculation but tax should be deducted on that particular month for that ad hoc amount based on new slab. But it should not disturb the original tax deduction for the year because of adhoc payment.

Please provide a solution on this.

Regards,

Sai

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  • author's profile photo Former Member
    Former Member
    Posted on Apr 14, 2015 at 03:15 PM

    Hi

    I will explain my requirement in detail.

    When we get any Bonus or variable pay or incentive, then it should add to gross amount and tax should be deducted based on the slab and same month tax should be deducted for that bonus amount.

    Tax amount should not distribute to next months (till march).

    In SAP if any incentive/Bonus is given then it will add to gross salary and calculate the tax and distribute the amount equally to next months.

    But our client requirement is, bonus amount tax should be calculated on the same month and for next months it should not calculate tax on bonus/incentive.

    How to map this requirement in SAP

    Regards

    Sai

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    • Former Member Former Member

      Hi Sai,

      The system will not calculate One time Tax along with regular Tax. If you go inside schema INN1, the function INBTD comes first, then comes INTAX function.

      So always INBTD will calculate tax on the one time payment component and generate /460.

      Then INTAX function will calculate Tax on the Regular component and then system will be get the tax amount which was calculated under INBTD function and it adds with the /460 amount of the regular tax.

      Example: After INBTD Function my /460 = 1000

      After INTAX Function /460 = 2000 ( 1000 is coming from INBTD and the other 1000 is from regular tax which got calculated under INTAX).

      Hope this will help you.

      Thanks & Regards

      Saroj Hial


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