Income Tax deduction increasing Month after Month-Payroll India

[former_member223824]

Hi Experts,

I have generated the payroll periods & doing the test run for all the months- PAYROLL INDIA.

To my concern income tax deduction is increasing month on moth without any change in Salary component.

Sharing the income tax screenshots.

April 2015-

May-

June-

What could be the possible reason behind this.

[BalaAP]

Hi,

Portion of a payslip may not suffice to explain the income tax calculation. If you show the output of INTAX function month by month, then we will be in a position to explain the tax calculation.

regards,

Bala.

[former_member223824]

Please find the INTAX for the month of April-

Now the INTAX for the period of MAY-2016-

[BalaAP]

Hi,

In May month, /125 (Irregular income) increased from 1,000 to 3,200.

It is the medical allowance. So, it is included in Annual Irr.income and tax is calculated. This is the reason for increase.

You can also check the income part which is increasing month by month and track the tax increase.

regards,

Bala.

[former_member223824]

Hi Bala Sir,

Thanks, you are correct.

Medical component is adding up 1600 every month which was not the case till now.

I have maintained MED-1250-IT582 it should calculate exemption

More over every month only 1600 should be paid for Medical but why system is adding it every month & on that even tax is getting calculated.

Please guide.

Thanks.