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0.01 in Mvt1 shows same 0.01 value in RT

Dec 27, 2017 at 08:18 AM

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Former Member

Hello everyone,

for the mid month separation, an employee Income tax should be zero for that month. In mvt1 I put 0.01 for this but when I run payroll it has shown 0.01 value in RT.

Please help me on urgent basis.

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2 Answers

Aman Tyagi
Jan 04 at 11:09 AM
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Hello Ms. Anju,

If you put a value in the wage type MVT1, then the rule INVT will replace the calculated value of Income Tax with whatever you filled into MVT1. Please check the documentation of this wage type in the view V_512W_D, you will see the following:

This wage type stores the voluntary tax amount The Voluntary Tax Deduction (INVT) personnel calculation rule uses this wage type to deduct the fixed tax amount in a month, without changing the annual tax deducted. The function replaces the tax to be deducted for the particular month, which the HR-IN: India Income Tax computations (INTAX) calculates, by a fixed amount.

Thus, what you're seeing the standard system behavior. You shouldn't be putting Voluntary Tax wage type in the master data of an employee if you don't want to deduct any Income Tax from them.

Also, please note that when you say, "for the mid month separation, an employee Income tax should be zero for that month", then this statement is not true. There is no statutory law that specifically covers this provision and it seems like a custom requirement. If this is a custom requirement, then you should try to put the Voluntary Tax for this employee as ZERO. Please check with your Tax Consultant for any legal non-compliance in that case.

Best Regards,

Aman

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Former Member Jan 09 at 11:59 AM
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Hello Anju ,

Is employee is having any off-cycle payment . Please check and let me know . We have faced the same issue earlier with off cycle payments.

Warm regards ,

SS.

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