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PAY_IN_HSG_100 - Maintain Fair Rental Value and Basis for Metro Cities

General Data in Customer Master   Fill RESBD Structure from EBP Component Structure  
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In this activity, check and if necessary maintain the constants for Fair rental value (FRV) and Basis for Metro cities. These amounts are used to calculate the perquisite value of housing if the employee resides in company provided accommodation. The perquisite value is added to the employees gross salary and used to calculate tax deduction at source during the payroll run.

An employees basis consists of basic salary, dearness allowance as per terms of employment, commissions, fees, allowances, professional or income tax paid by the employer, utilities of gas, electricity and water paid or reimbursed by the company.

FRV and basis amounts are calculated for three circumstances.

In the first part, if the FRV is less than 10 percent of the Basis amount, the actual FRV amount is added to the employees gross pay.

In the second part, if the FRV is more than or equal to 10 percent of the Basis amount upto less than or equal to 60 percent of the basis, then 10 percent of the employees basis is considered as the perquisite value of the housing provided.

In case the FRV amount exceeds 60 percent of basis, then the taxable perquisite amount is FRV amount less 50 percent of the basis.

All inputs are typically monthly figures but only annual amounts are considered for calculation of the perquisite value. This is to cater to any change in the FRV or basis amount.

Scenario one

Mr. Singh lives in Delhi (a metro city) and receives a basis amount of Rs. 120,000 per year.
He resides in a company provided accommodation whose fair rental value is Rs. 24,000 per year.

Mr. Singhs FRV is compared with his Basis amount. Since Rs. 24,000 falls between 10 percent and 60 percent of Rs. 120,000, Rs. 12,000 (10 percent of Rs. 120,000) is taken as the perquisite value for taxation.

Scenario two

Mr. Singh lives in Delhi and receives a basis amount of Rs. 120,000 per year. He resides in a company provided accommodation whose fair rental value is Rs. 11,000 per year.
Mr. Singhs FRV is compared against his Basis amount. Since Rs. 11,000 is less than 10 percent of Rs. 120,000. Rs. 11,000 (actual FRV) is taken as the perquisite value for taxation.

To change the Basis or FRV amounts, SAP recommends that you delimit the validity dates of the existing record and create a new record.

Modify the constants to meet your requirements by entering the appropriate validity dates and basis percentage or fair rental value amount as stipulated by the Government.

SUBST_MERGE_LIST - merge external lists to one complete list with #if... logic for R3up   TXBHW - Original Tax Base Amount in Local Currency  
This documentation is copyright by SAP AG.

Length: 2715 Date: 20240523 Time: 201519     sap01-206 ( 59 ms )