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Author's profile photo Former Member

Income from other source in SAP HCM

Hi,

Sometime you will see unexpected Income Tax calculation for few employees bu standard SAP system. Reason can be different_

one of the reason behind this is income maintained in IT-584 under ” Unspecified income” head. System will deduct flat 30% tax on this income even if the income is less then 2.5 lac rs.

Ex: A sample case the shown below where total income is 58230 ans system has calculated 103 as income tax, the Q is how?

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In this case user has maintained 7000 rs. in IT584 under “Unspecified income” head, and even income is 58230 system has calculated tax as 2100 ( 30% of 7000 )

Tax = 2100

Tax credit = 2000

total tax = 2100 – 2000 = 100

Tax payable = 103 ( Adding edu cess and she cess )

Thanks,

Gaurav Sharma

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      3 Comments
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      Author's profile photo BALASUBRAMANIAN AP
      BALASUBRAMANIAN AP

      Useful example.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      thanks !!

      Author's profile photo Sekhar Sekhar
      Sekhar Sekhar

      Hi,

      Nice document.