tds on one time payment

[Former Member]

Dear All,

I have a question related to One Time TDS. I Have been asking the question many times but had actually not able to get proper solution. Actually I am new to this concept altogether, actually the issue is.

My client is not able to get correct One Time TDS on One Time Payment. The one time payments are like Sales Incentives, Performance Incentives and Bonus,. The same is paid through regular payroll and not off cycle run.

Now here when the employee gets any of these incentives the ctc of the employee increases which even cross the Tax Slab Rate.

Eg.

CTC of an employee is 5 lacs - now based on the incentives the CTC based on that particular month incentives increases. Thus the slab also increases and Tax should be calculated based on increased slab and again next month onwards it should be the normal slab. But the system is not calculating the changed slab.

Kindly let me know where the error can be and what can be the possibility to get the same.

Thanks

Ritika

[Former Member · Accepted solution]

I think it is standard SAP

In the Payroll schema, Sub Schema INN1 plz check whether INBTD function activated with BON1, there are two function INBTD.

The wage type which you prepared for one time tax mean ex: Bonus wage type, should be part of RAP allowance grouping, maintain all nodes.

Then

If through IT0267, you are maintaing Bonus wage type with the date ex:30.09.2009., you should payroll driver with offcycle reason with the exact date of 30.09.2009. Your income tax will get deducted through Offcycle payroll.

In the Function INBTD, if you press F1, then you will get help of SBON, BON1. Plz go through that.

Regards,

[Former Member · Accepted solution]

Hi,

I have checked in my system it is BON5 & SBON maintained with INBTD Function, also we are not giving the Bonus and other incentives through off cycle Payroll.

Kidly advise?

Thanks & Regards,

Ritika

[Former Member · Accepted solution]

Dear Ritika,

Check this:

Model Wage type : MTDR

This is a model Wage type used to store cumulated value of all the

irregular payments for which flat tax need to be applied. It has the

following characteristics:

Tax code: STDR

Processing class 20 has the specification as 1

Processing class 4 has the specification as 6.

PCR: INRT

To add ur own wage type: u need to modify this PCR ... jz replace WT MTDR to ur custom WT.

Regards

...Sadhu

[Former Member · Accepted solution]

hi sadhar,

Could u please explain clearly about this issues solving... i have the same problem, i want to run the off-cycle payments but the TDS taking 30 percentage of the earing amount, i want that TDS shoul be manual deduction amount, how to do and what to do ? its really urgent issue please help me....

[sikindar_a · Accepted solution]

Mohanta

Do u want to change the Amt of TDS i means /460 which is System Generated Tax right in that case u have to check the processing of INVT PCR and the wage type MVT0 MVT1 MVT02 where we can adjust , add and deduct the amt in /460

[Former Member · Accepted solution]

Hi RitikaK,

Did u solved the issues, please help me even i too have the same issue... please update if any please...... its urgent issues plzzzzzzzzzzzzzzz

[Former Member]

Also check INRT PCR

ZNRT HR-IN: Cumulate Payments for TDS in Regular Run

*

****

WGTYP? Query wage type

****

ADDWT * OT Output table

7TAX

ADDWT * OT Output table

ADDWT 9TAX OT Output table

B101

ADDWT * OT Output table

ADDWT MTDR OT Output table

[Former Member]

create a tax code in table V_T7INT7

Assign wage type to tac code V_T7INT9

maintain the wage type for allowance grouping in table V_T7INA9

maintain a value for the bonous payment BNTDS (TDS % constant) in table V_T511K

In subschmea INN1 maintain

INBTD BON5 Taxcode X