Customer specific exemption is projecting

[Former Member]

Dear All,

I have created customer specific exemption, Professional Membership exemption

Now when i do test run for Jan (2016). Where in IT15 (amount is 10000) and IT582 (Amount is 10000)

Now exemption is getting projected. for Jan, feb and mar.

How do i stop this projection.

Feb month salary slip. it is only taking 10000 (which is fine)

Regard

KKS

[Former Member · Accepted solution]

Hi KKS,

Check the steps_

Payroll function INCTX has four paramters

Parm1:Enter tax code created.(ZPMF)

Parm2:Annual tax exemption wage type created.

Parm3:Whether the payment should be treated like an allowance(A) or a reimbursement(R) while

calculating tax exemption.

Parm4- Monthly tax exemption wage type. This parameter is optional

Thanks,
Gaurav

[Former Member · Accepted solution]

Hi Gaurav,

your WT 9PET, which is annual tax exemption WT. (Which you have assigned in Schema)

Same WT you have also assigning in IT 15.

Regard

KKS

[Former Member · Accepted solution]

Hi KKS,

Wage type for payment is 1PET in this case and 9PET for exemption. Two wage type you need to create one for payment and other for exemption.

1PET will be maintained in IT-15 and 9PET will be for exemption.

Copy MCAX in your custom wage type( 9PET in given example), and that will be your exemption wage type.Set cumulation class 7 for that too.

Thanks,

Gaurav

[Former Member · Accepted solution]

Hi Gaurav,

I have 2 WT (7PMF) for IT 15.

Another copied from MCAX to 1PMF for exemption.

However my both WT are coming in earning.

Exemption is not taking in gross.

However 7PMF (in IT15,) is considering in total gross.

Could you let me know, the complete configuration.

Regard

KKS

[Former Member · Accepted solution]

HI,

#Tax code configuration

We need to create tax code as there is no standard tax code available for petrol allowance through IMG

Payroll India-->Tax-->Tax Liability on Reimbursements,Allowances and perks-->Define Tax

Codes(V_T7INT7)

Click on new entries & create new tax code ZPMF

# Assign tax code to wage type

# Assign wage type to Pay Scale Grouping for allowance

Assign wage type to Pay Scale Grouping for allowance through the IMG for Payroll

India→Reinbursements,Allowances and Perks->Calculate Eligibility for RAPs(V_T7INA9)

# Create Subtype for Exemption infotype(0582)

Create subtype for Exemptions infotype(0582) through IMG for Payroll India->Tax Exemptions-

->Define other allowance/reimburesment type for exemptions.The name of this subtype should be the

same as the tax code that you have defined for this allowance or reimbursement.

The details in this subtype are used during the calculation of tax exemption on the allowance or

reimbursement. You can create a record for this subtype at any point of time during a financial year.

Finally Add payroll function INCTX in Gross net calulation – India schema(INN1)

thats it.

Thanks,

gaurav

[Former Member · Accepted solution]

Hi Gaurav,

Thnx for detail configuration

I am facing another issue now.

Test run for Jan is fine. Amount and exemption both happening.

But if i run it for Feb. Then 5000 exemption is not happening.

Also find my Schema

And IT 15 Detail

Where i have 2 WT

7PMF copied from (MB10). 7PMF is also assigned to t7inA9 and t7inT9.

and 1PM1 is from MCAX. This is not assigned to A9 and T9.

Regard

KKS

[Former Member · Accepted solution]

Hi,

You have created wage type for exemption is 1PM1 but in schema ZNN1 you have added wage type 7PM1

[Former Member · Accepted solution]

Hi Gaurav,

Typing error.

IT is 7PM1 copied from MCAX.

Regard

KKS

[Former Member · Accepted solution]

Hi Gauav,

Also need to ask, one question.

My Company Has certain reimbursement as EE level.

MD:- 30000

GM-- 25000

AM:- 20000

Let me know, if this can also be achieved by Customer specific reimbursement.

Now for this in table T7INT9.

9999/ LIMIT BASED/ ANNUAL/ 30000/ ZATE/ 01.01.1990/ 31.12/9999

Let me know, if we can achieve this with one WT for all level.

Regard

KKS