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Former Member

Income Tax calculation for PY-IN

Hi Gurus,

My customer has the requirement as follows. This is for Payroll India.

In April if the employee's salary is 1 lakh per month, then then calculate gross as 12 lakhs and then calculate tax on this employee as per the slabs.

This amount is then divided by 12 and income tax is deducted equally.

How do I configure this requirement.

Thanks

Govind

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2 Answers

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    Former Member
    Dec 02, 2016 at 06:25 AM

    This is standard procedure to calculate Tax in India, once you maintain slabs rates correctly, configure wage types correctly system calculates tax.

    Regards

    Venkatesh

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    • Former Member

      Thanks Venkatesh. But they want to calculate outside SAP, and then upload to the system. Right now what I do is use MVT1 wagetype to override the tax calculated in /460. Is there any other way to do?

      BR

      Govind

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    Former Member
    Dec 05, 2016 at 08:45 AM

    When tax is not getting calculated in SAP system, we use same approach which you are following now. Output we update/maintain in SAP system so that it can be used for reporting purpose.

    What you are expecting SAP system to do, so that we can suggest something.

    Regards

    Venkatesh


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    • Former Member

      I want to know whether there is any way to auto populate the MVT1 wagetype with the tax liability per month.

      Customer wants to manually maintain income tax rather than use the INTAX function.