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Hi expert,

Jul 17, 2017 at 04:32 AM

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Former Member

Hi Expert,

I want to understand calculation base of Taxable amount. Which amount is appear in Form-16 Part-A as Amount Paid/ Credited.

Please provide me clarity.

Regards
Saurabh

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3 Answers

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Former Member Jul 19, 2017 at 07:34 AM
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Dear Saurabh,

Please refer following link, which will provide clear explanation.

https://help.sap.com/saphelp_globext607_10/helpdata/en/0d/bec6ba2cec4cf69e9ba5b43dbec440/frameset.htm

Thanks

Prasad

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Aman Tyagi
Jul 20, 2017 at 12:16 PM
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Hi Saurabh,

Form 16, Part-A is derived from your 24Q filing. Also, it is a common misconception that the amount displayed is "Taxable Amount", when that hasn't been the case in a long time.

Now, the amount given in "Amount paid/credited" is derived from GROSS SALARY (/416) and not Taxable Income (/434), due to changes that were introduced by the Tax Authority.

To get an idea of how /4MI is calculated, you can check the following formula:

/4MI = {( /416 -/125- sum of previously paid /4MI's ) / (/401+1)} +/125

You can also check the following wiki:

https://wiki.scn.sap.com/wiki/x/65SgGg

Best Regards,

Aman

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Former Member Aug 23, 2017 at 11:52 AM
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Thanks alot

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