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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

  • Posted on 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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  • Posted on 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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