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Former Member
Jun 10, 2009 at 11:10 AM

IncomeTax Exemption for Medical reinmuresemtis not taking place ?

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Hi SAP-HR Experts .

I am facing a issue that for few employees Medical Exemption for incomeTax is not taking place for few employees ,

like upto Rs. 15000/- amount annually are exempted for Income Tax .

a employee whose exemption is taking place /3m1 wage type generated , while for those employees for which exempted for Income Tax in not taking place /3m1 is not generating .

IT-589 is maintained , and having amount 2MER(Medical reimbursement wage type) .

IT-267 is also having entry for Off-cycle Payment .

Emp X , having IT-589 , 2MER : 16,200 , for the duration of 01.04.2008 to 31.03.2009

for the month of May-2008 , He claims Rs. 1395.00 .

He has both wage types 2MER = 1395.00 and /3m1 = 1395.00 .

Employee X is correct case .

Emp Y : is wrong case where tax exemption is not taking place .

having IT-589 , 2MER : 30,600.00 , for the duration of 01.04.2008 to 31.03.2009

for the month of May-2008 , He claims Rs. 2086.00 .

He has both wage types 2MER = 2086.00 and /3m1 is not here .

what is required in order to correct this wrong case (Employee - Y) .

I have checked the Log of payroll both Correct case 'Emp-X' and wrong case 'Emp-Y'

Both emps are of same department and same location .

incase of Emp-X , Payroll-function INMED generates /3m1 wage type

while in case of EMP-Y it is not generating .

Why this is happening and how to correct it ?????.

Exemptions(0582) is not maintained for any employee .

Please tell me Experts what should i do in order to correct it .

Thanks & Regards : rajneesh