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
3 Answers
-
Best Answer
Former MemberPosted on Jan 13, 2011 at 12:51 PMHi,
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
Add comment
-
Former MemberPosted 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
Add comment
-
Add comment