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North East Tax Exemption is not happening for the Emps whose Basic Changed Retrospectively

Dear All,

For few North East State Emps Income Tax is calculating though they are exempt from the Income Tax according to Sec-10 (26 ).

Till the last month there was no Tax calculated for those Emps.


In the current month their basic pay is increased with effect from back date. i.e In the period of Oct for the period of May Basic has been changed.


From this month onwards Income Tax is calculating for the Emps whose Basic Pay was changed with effect from back date. I have checked all the configuration.

1) Maintained 0077 IT

2) NETAX in T511K set as 1

3) 40NET Feature

4) V_7IN0P_All for PA PSA North East Tax Exemption Check Mark.

Still system is calculating Tax for the Emps whose Basic Pay Infotype changed with effect from back date.

Request you all please help me in this regard.

Thanks & Regards,

Mastan Shaik.

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2 Answers

  • Oct 28, 2015 at 06:59 AM

    Hi,

    Kindly make sure the return value of feature 40NET as 1 for respective ethnic origins which will maintain in IT0077 and you must not maintain any record in IT0584 as well.

    Hope this will help you.

    Regards,

    Venkat Polisetty

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    Former Member
    Oct 28, 2015 at 07:39 AM

    Dear Mastan, Check table V_T505R for the ethinic group and also make sure the return value for those groups are given in feature 40NET. Let us know if the issues still persists. Thanks, Bhabagrahi

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    • Hi,

      Good to see your screen shots and your patience.

      I can see the F16 table shows /460 - which has calculated tax in previous months.

      You may have to analyse the month RT table, exactly when the income tax starting deducted (and no income tax deducted in previous month).

      I mean, you mentioned that the pay got revised from MAY month onwards in October month. Then you may have to dig OCT month RT tables & F16 tables and analyse. Checking the RT in sub-sequent periods will not yield any clue.

      You may have to debug INTAX function in that period (during when the tax got calculated at first instance) and you can catch the clue.

      I think, during retro calculation, the income tax is recalculated (but deleted since, it cannot change /460 in retro periods). So, the arrear income got carried forwarded month-wise and brought to current month and added to GROSS pay and tax is calculated in the current month.

      But during this calculation, probably, INTAX may have only total lumpsum arrear income and it may not know it has NE tax exemption or not. So it may treat it as taxable.

      You may clarify with SAP for NE tax treatment on arrears.

      Also, please debug the INTAX function of OCT payroll.

      If INTAX has the problem it can be solved by adding some custom PCR's (after INTAX calculation). But you should ensure the cause and exact point, where this problem arises.

      regards,

      Bala.