Tax Calculation

[chandra_sekhar96]

Dear Guru's.

Need your help to know how the tax calculation happening  for below RT log.

I have maintained two wage types in IT 0008 : Basic pay :40000 Flexi Allowance 5000

                                                      IT 0014 : Additional Payment = Incentives 10000

                                                      Maintained income form dividents  (IT 584) 11,00,000

Below are the RT table LOG.

Please explain.

Note : I have done the Manual changed for the 2016 Budget. Income from dividents will be taxed @10% if divident amount is more than 10lakhs.

Appreciate your help.

Message was edited by: Sekhar Sekhar

[Former Member · Accepted solution]

Hi,

It was calculating correctly, 10% on 1.00.000 is adding to the /436.

/4T1 = 25.000 + 31.160 = 61.160 + 10.000

total= 71.160 (wt /436) + 712.00 (wt /447) + 1423.00 (/449) = 73.295/- system is rounding to nearest 10/- so total taxable amount 73,300/-

[chandra_sekhar96 · Accepted solution]

Hi Praneeth,

Thanks for the Valueble input.

Can you tell me how the 25000+31,160 values are coming  or on what these values are getting calculated ?

and one more query,how the perk value 10,800 is showing ?

If you give some brief idea it will be very useful for me.

Thanks in advance,

Regards,

Sekhar.

[former_member182083 · Accepted solution]

Hi Sekhar,

Perk value is coming from /3C2 driver salary, kindly check your RT.

With Regards,

S.Karthik

[chandra_sekhar96]

Dear ALL,

Thanks for your Time and Patient replies.

I got cleared all my queries.

I am closing this thread.

[chandra_sekhar96]

Hi,

Thanks for all the expert  information,It has given me to understand how the Tax is calculated..

Need one more favour. i have done all the testing, except below scenario. can any one give some inputs how to test below scenario related to budget change 2016.how to maintain master data and what wage types will generate and how it effect the tax.

3. Changes under Section 80EE (Deduction on Interest on Housing Loan)

An employee is entitled to claim both the interest and the principal components of home loan repayments for tax benefits. Currently interest payable on a 'self-occupied' house is subject to a maximum deduction of INR 2 lakh under the head 'Income from House Property.' For first-time home buyers, an additional deduction of INR 50,000 on interest for a loan upto INR 35 lakh is proposed, provided the house value does not exceed INR 50 lakh. This needs to be maintained in IT0585.

Thanks in advance,

Regards,

Sekhar.

[jayantvenkata]

Hi Sekhar

You will need to maintain infotype 0585 with the amount of additional interest , limit is upto rs.50000.00
, under the head "House loan interest deduction U/S80EE.

Here is the screenshot.

Execute the payroll and check INS80 function.

Output IT will have wagetype /3I1 with rs.50,000 calculated

Thanks and Kind Regards

Ramana

[jayantvenkata]

Hello Sekhar

Can you please let me know incase you have any further queries.

Else you can close this thread.

Thanks and Kind Regards

Ramana

[former_member182083]

Hi Sekhar,

We can't able to view the screen shot of RT. Please could you reattach it, So we can check it.

With Regards,

S.Karthik

[chandra_sekhar96]

Dear Karthik,

PFB the scree shots.

Please help.

[jayantvenkata]

Hello Sekhar

Please also send the INTAX processing .

I believe this will clarify the tax calculated.

Else I will check and explain you the values.

Thanks and Kind Regards

Ramana

[chandra_sekhar96]

Hi Jayanti,

Thanks for your reply.

PFB the SS for INTAX Processing.

[jayantvenkata]

Hello Sekhar

Please find enclosed the calculation logic for Income tax as calculated:-

Here the /434 is equal to /410+/411+/413+/3O5  =660,000+10,000+10,800+100,000= Rs.780,000.00

Here the Annual perk amount /413 is taken from your /127 which is Annual perk..

Here the income tax so calculated will be applying the normal tax rates on Rs.680,800 on /416 wagetype, and an additional 10% tax is applied on dividend income Rs.100,000 on /3O5 wagetype.

So the normal income tax so calculated will be @ 10%  i.e. Rs.25,000 + @20% i.e. Rs.36,160.00 =Rs.61,160.00

Tax on income from Dividend @ 10% on Rs.100,000= Rs.10,000

Total tax will therefore be Rs.61,160.00 + Rs.10,000 =Rs.71,160

Hope this helps clarify your query!

Thanks and Kind Regards

Ramana