tax rebate /437 is wrongly coming

[Former Member]

Hi All

We have updated the patch level as per 2015 budget .

1. conveyance exemption also changed to 1600 for month.

before updating the patch level we run payroll for APR and May month. after patch updation I have run  payroll for June month, but in this month conveyance exemption was showing only 9600 instead of 19200. I did a forced retro from 01.04.2015 , then system calculated 19200 exemption correctly.

But we are facing problem with tax rebate , /437 is calculating 19200 instead of 2000 tax rebate. Eventhough employee taxable income is 900000, it is giving tax rebate of 19200.

plz advice.

Regards

Sai

[Sanky]

Hi Sai,

After deduction chapter VI from gross salary, if this amount is less than equal to 5lacs then employee will get an extra tax benefit of 2000.

Check this part and share the INTAX function output table details of this employee.

Regards,

Sankarsan

[Former Member]

yes it should take 2000 tax rebate if  the taxable income is less than 5 lacs. But here it is taking 19200 as tax rebate if the taxable income is more than 5 lacs.

19200 is the conveyance exemption in /4E3.

but tax rebate is showing 19200 as explained above,

I have attached the screen shot of INTAX function.

processing of INTAX function and output of INTAX function.

out put

[Sanky]

HI,

Why sec89 is generating?

There have any retro from previous financial year.

Check and tell me.

Regards,

Sankarsan

[Former Member]

Hi Sankarsan

As I mentioned in the beginning, 

We have updated the patch level as per 2015 budget .

1. conveyance exemption also changed to 1600 for month.

before updating the patch level we run payroll for APR and May month. after patch updation I have run  payroll for June month, but in this month conveyance exemption was showing only 9600 instead of 19200. I did a forced retro from 01.04.2015 , then system calculated 19200 exemption correctly.

But tax rebate also coming as 19200 eventhough employee's s taxable income is more than 5 lacs.

Regards

Sai

[Former Member]

Hi

1. We have run payroll for April, and May 2015 month. And  then we updated the patch level and did the manual changes in the configuration.

But while updating  T7int9  table there was some mistake happened. By mistake we changed the entries to Monthly exemption - 19200 - 01.01.1900 to 31.12.9999.

we did't delimit the entry from 01.04.2015 , also amount was mentioned wrongly as 19200 monthly.

2. after this we run payroll  for June month, but exemption was not coming correctly. Then we did forced retro from 01.04.2015. then /4e3 came correctly as 19200. But we did't check the tax rebate and we exited the control record.

after running payroll and exiting the control record we realized that tax rebate is wrong.It is picking up /4e3 amount as tax rebate if employee taxable income is more than 5 lacs.

3. I have attached the screenshot above, in that it is showing /6i2 wage type which is C/F section 88 investment from 586 Infotype.

but not sure why this conveyance exemption is adding to /437 tax rebate u/s 87.

4. Also now we corrected the T7INT9 table as below.

Monthly - 1600 - 01.04.2015 to 31.12.9999 and old record we have delimited.

5. Now I am trying to run the payroll still it is showing /437 as 19200 only. It should come zero for those taxable income more than 5 lacs. and it should show 2000 for whose taxable income is less than 5 lacs.

Plz guide how to correct it. I did forced retro from 01.04.2015, but it did't work.Still tax rebate shows 19200.

Regards

Sai

[Former Member]

Hi

Any solution for this.

Regard

Sai

[Sanky]

Hi Sai,

I think due to this table T7INT9 system is doing like this and brought previous financial year result.

Have you rectified T7INT9 table entry with correct delimiting the wage type? I think on the June month system gone for an retro for all employee's due to these changes. Please check this part. If it's correct then you have to delete all result of June month (do reverse posting and after that) and then run the payroll once again from April2015. Hope so by this it will work.

But do test in the QAS system with this scenario.

Regards,

Sankarsan

[Former Member]

Sankarsan thxs for the reply.

Before all these only I have set  retro from 01.04.2015 in 3 Infotype for all the employees after march month payroll.

But how it is bringing  previous finacial year result am not sure. it is generating /6i2 wage type which is C/F section 88 investment from 586 IT. Also this wage type is read on INCCO function for calculating the relief amount for Sec 89.

          I have corrected the entry in T7INT9 table and deleted june month payroll and rerun from 01.04.2015. Then also 19200 is coming as tax rebate.

plz advice.

Regards

Sai

[Sanky]

I think now there have no entry as retro run for previous financial year for the current financial year payroll run.

Debug the INTAX function coding once with ABAPer why /437 is taking 19200 where logic is if WT/430 is less than equal to 5lacs then /437 should work as extra tax rebate of 2000.

ANother test you can do check without conveyance allowance amount for the employee and then /437 is coming as 2000 or not.

If still error is remained same then raise an OSS message to SAP immediately for further help.

Regards,

Sankarsan

[Former Member]

Hi

1. I have corrected the T7int9 table and deleted june month payroll results and rerun from 01.04.2015, still tax rebate is shown as 19200.

2. I removed the conveyance amount and checked , then also 19200 tax rebate is coming.

3. if employee taxable income is more than 5 lacs then it is taking 19200 and if taxable income is less than 5 lacs , then tax rebate is taking total tax amount from /436.

4. It is referring to /6i2. /616, /650 wage types and table sec 89 contains these wage types with zero amount.

now we need to debugg and see. And need to raise to SAP.

Regards

Sai

[Sanky]

Yes . raise an OSS message for this.

Regards,

Sankarsan

[Former Member]

Hi All

As mentioned above, we are facing problem with tax rebate.

1. We have run payroll for April, and May 2015 month. And  then we updated the patch level and did the manual changes in the configuration.

But while updating  T7int9  table there was some mistake happened. By mistake we changed the entries to Monthly exemption - 19200 - 01.01.1900 to 31.12.9999.

we did't delimit the entry from 01.04.2015 , also amount was mentioned wrongly as 19200 monthly.

2. after this we run payroll  for June month, but exemption was not coming correctly. Then we did forced retro from 01.04.2015. then /4e3 came correctly as 19200. But we did't check the tax rebate and we exited the control record.

after running payroll and exiting the control record we realized that tax rebate is wrong.It is picking up /4e3 amount as tax rebate if employee taxable income is more than 5 lacs. And It is picking up /436 amount as Tax rebate if taxable income is less than 5 lacs.

I have corrected T7int9 table  as 1600 monthly  from 01.04.2015 to 31.12.9999. I have deleted June month pay results and rerun from 01.04.2015. but  tax rebate is coming as 19200 which is same as /4E3 if taxable income is more than 5 lacs. If taxable income is less than 5 lacs it is taking amount from /436 as tax rebate.

Even I removed conveyance component and checked then also 19200 rebate is coming.

3. /6I2, /616,/650 are generating under Sec 89 internal table below INTAX function , but it is showing zero amount. But tax rebate is coming wrongly as 19200 which is same as /4E3 if taxable income is more than 5 lacs. If taxable income is less than 5 lacs it is taking amount from /436 as tax rebate.

Note : Before all these I have set retro date as 01.04.2015 in 3 IT for all employees.

Any help is really appreciated.

Regards

Sai