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INDIA PAYROLL ISSUE

Former Member
0 Kudos

HI Sap master's thanks in advance please help me out this requirement .

1. House rent allowance (HRA) Calculation Based on present address .Not for Personnel area and sub area .

2. Income tax based on slabs if Employee tax amount below 500 this tax amount will deduct at end of the financial year .How to map this please help me out this.

Thanks&regards

   VIJAY

Accepted Solutions (1)

Accepted Solutions (1)

venkat_polisetty
Active Contributor
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Hi Vijay,

Your query is not clear, can you elaborate...

Regards,

Venkat Polisetty

Former Member
0 Kudos

Thanks for your quick reply

Based on income tax slabs we will deduct the Tax . But some employees tax is small amount.

Ex: If one  employee tax amount 490 in the month of June 2015 . And remaining months also 490 but that amount will deduct on Feb 2016. 

  Ex: June 2015 income tax = 490

like wise (June 2015 to Feb 2016 ).

                  (8*490= 3920) .

the above amount will deduct Feb 2016.

Former Member
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Dear Vijay,

Use the Wage code MVT1 (In IT0014/15) from June to Feb as Rs.0.01. System will deduct the entire amount in March.

Regards

Ravi

venkat_polisetty
Active Contributor
0 Kudos

Hi Vijay,

Whenever you don't want deduct Income Tax amount you have to adjust same amount in IT0015 with using wage type" MVT0" in this wage type you have to maintain negative amounts to adjust the Income tax amount.

Ex: For Employee system has deducted 450/- as Income tax amount, now you want to nullify that amount you need to maintain same amount(which system has generated in Income Tax amount thtis same amount you have to maintain in IT0015 against the wage type "MVT0" and need to generate the payroll process.

You can nullify this amount with using wage type MVT1 also, If you will maintain amount in this wage type system is override the amount with this amount.

Regards,

Venkat Polisetty

Former Member
0 Kudos

Thanks a lot  my issue solved

Thanks&regards

VIJAY

Former Member
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Thanks a lot My issue is solved .

Thanks&regards

   Vijay

Answers (1)

Answers (1)

VKP
Contributor
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Hello,

As per my knowledge,


1 . For HRA, for the pernr, in IT581 you need to maintain City Category as Metro / Non Metro and also if HRA is to be tax exempted, accordingly HRA calcualtion happens.

2. for second point, you can go with the suggestions above, also do keep in mind that if the salary is less than 500000 then as per my knowledge the EE will get Tax credit of Rs 2000. So plz ensure by yr end this is also happening.

Regards,

Vishwas