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Previous Employeement Tax Details, inclule in Form 16 (IT0580)

Former Member
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Hi Gurus,

In IT0580 i maintain the Previous Employeement Tax amount Rs100,000, Employee Join the company on July 2014.

for the Month of April 2014, May 2014, June 2014= Tota tax amont is Rs 100,000 ( which i maintin in IT 0580)

July, Aug, Sept, Oct, Nov, Dec 2014 and Jan 2015, Feb2015, March 2015 = Tota Tax amont is 4000,000)

so SAP calculated Tax on Rs5000,000 (100,000+ 400,000)

in Form 16 its showing Salary Rs500000

But My client wants not to show in form 16 (100,000) which comes from IT0580. Client wants to show only 400,000

Please  help me out. need your help on this urgent.

Thanks & Regards

Bapu.

Accepted Solutions (0)

Answers (3)

Answers (3)

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Hi,

It is the responsibility of the current employer to correctly calculate the income tax and remit to the tax authority. Since the employee joined in mid-year, the employer has to get the previous income tax details which is not only the tax amount, but also the deductions/exemptions/ he availed and prof.tax/PF deducted also in the current financial year.

Current employer should also maintain the correct records for the purpose of statutory/tax audits. So IT580 is provided in SAP. Trying to change the standard behaviour may lead to other complications.

Is this client using SAP first time? If so, how they have handled such cases in legacy system? You can ask for the process/procedure of how they handled such cases previously and accordingly you can understand and convince to follow SAP standard.

This scenario will happen only to very few employees who join in middle of the financial year, so it is not going to create any problem to the client.

Best Regards,

A.P.Balasubramanian

VKP
Contributor
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Hi,

In the F16 selection screen, check the field "Print Annexure" then in the F16, go to the sheet 4 which is "Annexure to Form No.16" , here you will find Previous Employment Salary u/s 17(1) , Previous Employment Exemption u/s 10, etc, these are the values picked up from IT580

hope this help.

Message was edited by: Vishwas KP

Former Member
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Hi Vishwas,

In Form 16, Its showing both Previous Employement tax details and Currently Employement tax details .

But Client dont want to show Previous Employment Tax details in Form 16. whcih is comeing from IT0580.

Is there any Solution that i cant show Previous Employment tax details which is comeing from IT0580 in Form 16?

Thanks & Regards

Bapu.

VKP
Contributor
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Hi Bapu,

Can you share with us why does your client want it this way? 

If the details in IT580 are not to show up in F16 then the gross and the tax, and other fields will all be inconsistent right...

Former Member
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Hi Vishwas,

Client told, they are not paying that amount so why they will show in Form16.

That employee will get 2form16, One is from previous organization, another one is Currenlt organization.

As IT 580updated and paryroll has run for the month upto March 2015.

Is there any way, that Previous employeement Tax details will not show in Form16?

Thanks & Regards

Bapu.

Sanky
Active Contributor
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HI,

This is not correct process but you can try to give solution to customer but need proper testing to make it happend.

After RT table generation you will write one pcr which will query the all previous employer tax related information that is nothing but the /4V series wage type. And will make zero to rewrite the RT table.

After done this test the income tax calculation in RT and form16 as well as.

Regards,

Sankarsan

VKP
Contributor
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Hi Bapu,

As Sankarsan is saying, I also feel this is not correct.

Because, if you have maintained data in IT580, then the tax liability of an emp is calculated according to that data that is maintained,

the 2 F16's will be useful if one does not maintain data in IT580, if data is there, and being captured, then only 1 F16 is enough for any person to file returns, because all the details will be captured in one form only.

you can try explaining this to the client with examples....    

Sanky
Active Contributor
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Hi Bapu,

You have maintained 100000 as previous employer tax deduction in IT580.

In the Form16 you will be getting two part as previous employer tax deduction as 100000 and rest is current employee tax deduction as 400000.

Check the FORM 16 2nd page and share to us.

Regards,

Sankarsan

Former Member
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Hi Sankarsan,

Yes in form 16, I am getting two part. But My cleint want not to show the previous Employement Tax Deduction as 100000. In Form 16.

Thanks & Regards

Bapu.

Sanky
Active Contributor
0 Kudos

Hi Bapu,

It's correct. System is working fine with two details that revious employee tax details and current employee tax details in two lines.

It's the correct display of Form16 as per IT act as per my knowledge.

You can check with SAP once.

Regards,

Sankarsan