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Former Member
Apr 02, 2009 at 06:41 AM

Tax not calculating for loss of pay on the reduced basic pay

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Hi Experts,

We have an employee who has LOP for five days and hence the basic pay is reduced. However for tax calculation the system is not considering the reduced basic pay, it is considering the actual basic pay.

Eg

Employee X has 5 day Loss Of Pay for the month of May.

His actual Basic Pay is Rs 10,000

His Basic pay after considering the 5 day loss of pay is Rs 8,000 for the month May

For this particulat month system is calculating tax on actual Basic Pay i.e Rs 10,000. However we want the tax to be calculated on the reduced basic pay.

Please provide with your valuable inputs.

Thanks in Advance

Koutilya