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Budget Changes 2020-21 for Country India Payroll

Update 18th March 2020:-
We now have further two more SAP notes related to Union Budget 2020-21 released to customers:-

  • SAP Note 2895046 -Union budget 2020-2021: Tax calculation options – ESS
    &
  • SAP Note 2894010 -Union budget 2020-2021: Income tax slab, Section 16 and Section 24

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Update 17th March 2020 :-
SAP note  2890833 -Union Budget 2020-2021: Tax Option – Infotype is now released for customers.
This SAP Note delivers changes for Budget 2020 -2021.

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Hello All

Budget changes for the tax year 2020-21 for Country India Payroll would contain as follows:-

Key changes related to Budget 2020 that affect payroll processing

In the Finance Bill, 2020 that was presented in the parliament to give effect to the financial proposals of the Central Government for the financial year 2020-2021, the following proposals that affect payroll processing are made.

  1. Option for employee to pay tax under the newly introducted Section 115BAC
  2. Extention of Section 80EEA for loans sanctioned up to 31st March 2021
  3. Limit of Rs. 7.5 lakhs on tax-free employer contribution to retirement funds
  4. Scrapping of Dividend Distribution Tax
  5. SAP Note – 2895025 – FAQ on Budget 2020.

Check out the details at:

https://launchpad.support.sap.com/#/legalchangenotification

https://support.sap.com/en/product/globalization/hcm-erp.html#section_1640081980

Important:-

Keep an eye on the following SAP note and KBA for more information :-

  1. SAP Note – 2895025 – FAQ on Budget 2020.
  2. KBA No. 2602781 – Announcement Of Legal Changes Payroll India & Budget Changes Info

Customers who have not yet subscribed to the Newsletter, please do Subscribe to SAP Payroll India Newsletter Today !
For More Details: Refer KBA 2758160 – SAP HCM Payroll India Monthly Newsletter – Product Support

Thanks and Kind Regards

Ramana

1 Comment
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  • Sorry to ask here !

    Will be there any correction instruction for EPF changes  or table level changes are enough  ?.

    In the  last  connect it was mentioned a note will be released by Wednesday.