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Wage type Exemption in Form16 Under Section 10(16)

Former Member
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Dear SAP Professionals,

Here, I am taken up with an issue regarding a Wage Type Exemption and looking for your consulting help. the scenario is cited below.

We have to make a payment called Education scholarship which is defined to be exempted U/s 10(16) in income tax act. in agreement with the buisness requirement, we have created a wage type Edu. Scholarship however its exemption is not mapped in Form-16.

Can anybody direct me as to how we may exempt this Wage Type in Form 16 Under Sec. 10(16).

I look forward to sure shot solution from all of HCM Professional. I would be grateful for the same.

Cheers.

Santosh Chauhan

SAP Consultant   

Accepted Solutions (1)

Accepted Solutions (1)

Former Member

Hi Santosh,

Create once proficiency in the table V_T52D4 for Evaluation class 07. and the same proficiency maintained for the created wage type for EC 07 XX in the table V_512W_D.

Answers (2)

Answers (2)

Former Member
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Hi Praneeth,

Thanks a ton for contributing your valued input in the progressing conversation thread.. I found your solution somewhat relevant to my issue. i would request you to elaborate the process of creation proficiency in the table. Being Irregular payment wagetype, Kindly note the corresponding characteristic of wage type.

Amount should need to be added in Gross.

Then amount should be exempted u/s 10(16)

Hence above effect should reflect in Form-16 for due compliance and accuracy of data.

Thanks and regards

Santosh

Former Member
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Hi,

If this wt is not included to Gross then dont check for CC 1

go like this:

CC 10 25 38

EC 2  7 11

EC 7 - XX will capture the wage type in Form-16

EC 11 - 01 Non-perk amounts

sikindar_a
Active Contributor
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Have you checked the Evaluation Class 2 for that wage type.

Former Member