Kontakt

Ansicht
Dokumentation

< ( RELNPY_IN_LCP_007 )

< ( RELNPY_IN_LCP_007 )

CL_GUI_FRONTEND_SERVICES - Frontend Services   TXBHW - Original Tax Base Amount in Local Currency  
This documentation is copyright by SAP AG.
SAP E-Book

Short text

Payroll India SP7 - Summary of new features and enhancements

Scope of Functions

  • Voluntary Tax
  • Customer Exit for Housing
  • Standard Deduction
  • Provident Fund
  • Housing loan interest limit for self occupied property under section 24 of the Income Tax Act
  • Car and Conveyance Functionality
  1. Voluntary Tax

The provision to deduct voluntary tax is now available with the following options:

  • Additional tax deduction in a month: In any given period, you can increase an employee's tax liability by a fixed amount. As the employee's annual tax amount does not change, the remaining tax to be paid is divided by the number of subsequent tax periods.

  • Replacement of system calculated monthly tax : You can override an employee's tax amount (as calculated by the system) with a fixed amount. As the employee's annual tax amount does not change, the remaining tax to be paid is divided by the number of subsequent tax periods.

  • Voluntary tax deduction: An employee can choose to pay more tax for any given period. This amount will be added to the tax amount calculated by the system. As this is a voluntary tax, the employee's tax amount for the subsequent periods does not change. Therefore the employee's annual tax deducted in the year will be over the standard tax calculation (by the amount of Voluntary tax).
    For example, an employee with financial liabilities towards the end of the year could choose to pay double the tax amount in the first six months. This would enable the employee to receive their full salary with no tax commitments, for the remaining six months.

  1. Customer Exit for Housing

In the event that you would like to deviate from the SAP standard computation for Housing loans (in the case of self occupied property, under Section 24 of the Income Tax Act), a Customer Exit (EXIT_HINCALC0_005) is now available in the Enhancement (HRINHRA0). See the Customizing section of this document for details.

  1. Standard Deduction

The Annual Budget for the year 2001-2002 triggered a legal change for Standard Deductions.

The salary brackets (read salary slabs) for Standard Deduction and the limits there of, have undergone a change with the current years budget. The new slabs are:

Sal.Income (Lower Lt.) Sal.Income (Upper Lt.) Lim. of Std.Dedn.
Rs. 0 Rs. 1,50,000 Rs. 30,000
Rs. 1,50,000 Rs. 3,00,000 Rs. 25,000
Rs. 3,00,000 Rs. 5,00,000 Rs. 20,000
Rs. 5,00,000 None NIL

Note

The Standard Deduction limit is an inclusive limit. This means that an upper limit value of Rs. 1,50,000 indicates that up to and including a salary of Rs. 1,50,000, the limit of standard deduction is Rs. 30,000.

  1. Changes in Provident Fund
  • According to the Income Tax Act, employers are no longer obliged to make Pension Fund contributions for employee's over the age of 58. In this case, the employer pays the pension fund amount to the employee's Provident Fund (PF).

  • The minimum eligibility amounts for an employee's provident Fund (PF) contribution have been delimited from Rs. 5000 to Rs. 6500 as of 01 June 2001. This exists in the Payroll Constants (V_T511P) view for the PF Eligible pay constant (PFBAS) for the values:

Rs. 5000 from 01.01.1999 to 31.05.2001

Rs. 6500 from 01.06.2001 to 31.12.9999

  1. Housing loan interest limit for self-occupied property

The interest limit for housing loans in case of a self-occupied property under Section 24 of the Income Tax Act has changed. See the Customizing section of this document for more details.

  1. Car and Conveyance Functionality (Enhancement)

The Income Tax Act supports Tax exemption on conveyance allowance for the disabled.

According to Section 10(14)(xi) of the Income Tax Act, the transport allowance granted to an employee handicapped with blindness or an orthopedic disability of lower extremities, is tax exempted for Rs. 1600 per month. This is valid only for the purpose of commuting between the place of residence and work, and the rebate is claimed on providing proof of travel.

SAP now caters for this exemption through the Exemption limit for challenged constant (CHGEX), maintained in the Payroll Constants (V_T511P) view.

Note: The conveyance allowance for handicapped employees is treated in the same way as regular employees who recieve a rebate of Rs. 800 every month. In this case, the rebate amout is Rs. 1600.

Effects on Existing Data

Effects on Data Transfer

Effects on System Administration

Refer to the OSS Note number 360231 for detailed instructions on installing the prerequisite Support Packages.

Effects on Customizing

  • Customer Exit for Housing

Exits are provided in the payroll function INHRA to cater to different practices followed by you to compute the value of 'Housing Perk (Company Leased Accommodation (CLA) / Company Owned Accommodation (COA)' differently from the standard SAP computation. The Customer exit (EXIT_HINCALC0_005) is available in the SAP enhancement HRINHRA0. Access this from the IMG activity Payroll India -> Housing -> User Exit: Determine Perk Value for Housing.

  • Housing loan interest limit for self-occupied property

The interest limit for housing loans in case of a self-occupied property under Section 24 of the Income Tax Act has changed from Rs. 100,000 to Rs. 150,000. Maintain this in the Payroll Constants (V_T511P) view for the Section 24 Deduction constant (LNS04).

Further Information

Refer to the OSS Note number 411862 for more information on these functions.






BAL_S_LOG - Application Log: Log header data   PERFORM Short Reference  
This documentation is copyright by SAP AG.

Length: 7902 Date: 20240603 Time: 004035     sap01-206 ( 117 ms )