Today I am going to share something which I have learnt purely based on my experience from all the previous projects, where we have done Configuration of stitching charges , Hence what ever I explain today is just a suggestion and there might be better ways of achieving the result than my approach.
Business Scenario:
As per Indian income tax act the Stitching charge exemption limit is Rs 540. To configure this requirement this blog will help you.
Configuration Steps are as follows:
5. Schema Changes
1 Create a taxability code in view V_T7INT7.
2 Create two wage types for Payment and Exemption. The wage type has to be assigning to a tax code for the annual taxability - (V_T7INT9).
3. Assign the wage type to an ALGRP through the RAPS view table V_T7INA9.
4. Create a sub type for IT0582 - Exemptions info type in view V_T591A Corresponding to the tax code created.
5. Schema Changes
Copy the Standard Schema INN1 to ZNN1.
Reimbursement. The supported options are 'A' & 'R'. The treatment of
'A' & 'R' is different for monthly and annual exemptions.
CASE STUDY
End User:
The required Exemption on stitching charges for eligible employees has to be entered in info type 0582 – “Exemptions “ Subtype – “SSTC”
Case:
There was a payment towards STC for an employee in info type 0015 amting to Rs.1000,But the exemption in info type 0582 is been entered as Rs 540. Hence the remaining amount will be l automatically taxed in the payroll.
The same information will be displayed in pay slip and also at annexure of Form 16.
Output:
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