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Income tax calculated 5 times more??

Dear Experts,

When we are running payroll without maintaining PAN no then system genrated income tax more then 5 time.

Suppose We maintain PAN no system calculated Income tax 500 rupee then above case calculated more then 2500.

Please suggest me.

Thanks & Regards,

Neelesh Sonkar

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3 Answers

  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on Jan 13, 2011 at 12:51 PM

    Hi,

    As per the latest income tax regulation if PAN number is not provided/maintained any income between 0 INR and 800000 INR will be taxed at flat 20 % and above 800000 INR will be taxed at flat 30 %.

    There is a constant maintained in V_t511K "PNCHK" to check whether the PAN number is maintained for an employee or not.

    Suppose in your case the annual gross salary is Rs.200000 for a male employee. With out maintaining the PAN his annual tax liability will be Rs.40000 (200000 *20 %). But with PAN maintained his liability will be only for Rs.40000 (ie: 200000-160000) which is equal to Rs.4000. (40000 * 10 %)

    Regards

    Raviiiiiiiiiiiiii

    Edited by: ravishanker m on Jan 13, 2011 1:53 PM

    Edited by: ravishanker m on Jan 14, 2011 5:05 AM

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 14, 2011 at 07:07 AM

    Hi,

    In continuation to team mate Raviiiiiiiiiiiiiiiiiiii responce,Please go through this thread (raised by me)

    Required SAP notes for new income tax calculation

    tax-is-deducting-in-form-16-when-total-income-is-b

    MVR

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  • Posted on May 05, 2011 at 05:41 AM

    Problem is solved.

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