Sec.89

[Former Member]

Dear All,

I have a query regarding final settelment. For Ex-The employee is inactive in 28.02.2009 & now we want to perform the final settelment in 30.06.2009 which is effective from-31.01.02009.The last payroll of the employee is 28.02.2009.So we have to recover one months salary.The system also recovering the amount & to nullify it we give Arrears of the respective wage type with the same respective amount.

After doing all this input in 30.06.2009 in infotype -15 we are running the payroll in test mode & found that the tax amount is coming as low.

It's total gross amount-389,236.72 for which tax is considering 21,770.00 which shoud be around 32000.On analysing it is found that the total income that should consider for tax calculation in Function INTAX found to be- 283,810.00 insted of 389,236.72 .The S89 table showing the DT amount as follows-

2009 2008 /6I2 3,497.00-

2009 2008 /616 46,621.00

2009 2008 /622 250.00-

2009 2008 /650 15,991.00

I want the system to calculate the tax amount properly.Any body who have face such problem pl. help me solve the issue.

Thanks..

Snita

[Former Member]

Is there is any section 80 deduction for this employee.

[Former Member]

Hi,

No deduction under section 80.I have gone through one S-Note no-1339111 & where one rule has to be modified for retroactive accounting i,e IN56.I am not sure whether that will help me or not.Any idea regarding this.

Snita