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Former Member
Dec 03, 2008 at 09:59 AM

Rs.15000- Tax Exemption for Medical Allowance

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Hi Pals,

I have a wage type called Medical ALlowance, the wage type is taxable , if in a year if the total payment is more than Rs.15000. I have maintained the following Tax configuration for this wage type as below

Table V_T7INT9 .

1MER Tax exemption is Limit Based Limit for Tax Exemption is Annual 15,000.00 SMED INR

But when a medical allowance of Rs.20000 is paid, the system calculates the entire Rs.20000 for tax calculation instead of Rs,5000.

I have mainatined Processing class 71 - Create tax exemptions for All/R R Tax it as a reimbursement as per T7INT9.

How to slove this.

Rgds,

Sekar.