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Monday, March 12, 2012

Indian Payroll In SAP

India Payroll.
This may not be giving the complete information on India Payroll in SAP, but i will try to provide the maximum information, so that the reader can get a good understanding on India Payroll.

Firstly, i would like to cover the Infotypes Specific to India Payroll. These are

01)IT0580 (Previous Employment Tax Details)
02)IT0581 (Housing(HRA / CLA / COA))
03)IT0582 (Exemptions)
04)IT0583 (Car & Conveyance)
05)IT0584 (Income From Other Sources)
06)IT0585 (Section 80 Deductions)
07)IT0586 (Section 80 C Deductions)
08)IT0587 (Provident Fund Contribution)
09)IT0588 (Other Statutory Deductions)
10)IT0589 (Individual Reimbursements)
11)IT0590 (Long term reimbursements)


01)IT0580 : Previous Employment Tax Details
In this infotype the previous employer income and tax details have to be entered. This infotype would be valid for those employees , who join in the middle of a  financial year and have worked in some other organization for the other part of the year.
If data is not entered here, the tax calculations may not be correct and even the form 16 would be showing incorrect tax details, and while filing the form 16, employee may have to club more than one form 16, and may end up paying some more tax to the Income tax department.

02)IT0581 : Housing(HRA / CLA / COA
Here we enter the House rent or Company Leased Accommodation or Company Owned Accommodation details.
Based on these details, employee will get HRA exemption. Even CLA (Company Lease Accommodation) and COA(Company Owned Accommodation) details are entered here. These definitely have some tax benefit, but also add some perk to employee salary.

03)IT0582 : Exemptions
Here we enter the various exemptions. Like Medical, LTA, exemption on Child Education Allowance, exemption on Child hostel allowance, exemption on other allowances and reimbursements.

04)IT0583 : Car & Conveyance
Here Car and Conveyance details are entered. Capacity of the car, type of Conveyance etc are entered.

14 comments:

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