How to reverse TDS to Employees ?

[Former Member]

Hi Team,

One of our employee wrongly paid performance Incentive which identify after posting & payment.

Now employee has refunded net amount paid to him by cheque.

Accordingly posting of incentive & TDS need to be reversed as it will reflect in his Form 16.

Can anyone help me on This issue...

Thanks

Anand

[Former Member · Accepted solution]

Hi,

We cant refund any TDS amount once deducted and paid.

Maintain the same wt with negative amount and re-run the retro then his tax amount will be zero but tax deducted so far will be the same. if case, he got any incentives/salary hike then tax will be adjusted. if not he will get at the time of Income tax return filling only.

[Former Member · Accepted solution]

HI Praneeth,

we paid incentive to employee  by maintaining infotypr 0015.

if i delete infotype 0015 and run force retro , will it get resolved....

Is it correct ...

Can u help me..

[Former Member · Accepted solution]

Hi,

If you delete the IT0015 and re-run gross and net pay will adjusted but deducted TDS will not adjusted.

[former_member1020143]

Hi

Maintain voluntary tax wage type MVT0 with negative value for the amount of tax deducted already.

In the payroll the MVT0 will adjust the Income Tax issue.

Thanks & Regards

EKP YADAV    

[former_member350573]

Hi Ananda ,

First of all , tax once deducted should not be recovered from payroll run.This is not a standard process either functionally or in SAP .

However the issue can be resolved by doing the following :

1.Create a deduction wage type

2. Select cummulation classes  - 1 and 25

maintain it as a deduction in IT0015. the tax and amount can be recovered.

regards

Sandhya