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Former Member

Hi expert,

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

    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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  • Jul 20, 2017 at 12:16 PM

    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

    Thanks alot

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