LTA Configuration as per IT 582 on Yearly Exemption in the month of April'XX

[Vignesh_D]

Dear Team,

we have LTAexemption, wherein the amount which i give in IT582 30,000 is not taking into account in the year starting (april) instead it takes monthly amount which we pay through IT0008. How can i configure that it should take the total amount given in IT582, Because we are getting month on month tax variations because of this.

Regards,

Vignesh

[BalaAP]

Hi,

As per your second reply, when employee claim his LTA in advance, how you are paying him? Link that wage type with SLTA and once he gets claim in one time, he should not be paid in Basic pay. Am I right Boss?

regards,

Bala

[Vignesh_D]

Sir,

For an Eg. Employee finished his trip by April'18, and submits his claim by end of April at the time of tax declaration, or someone might declare some amount for tax exemption, in such cases the total amount given in IT582 should compare with the payable L&T amount to the employee for that year and bring up whichever is least for tax exemption.

Note: LTA is being paid through 1116 in IT0008 as a month salary component, After Payroll runs, /4E5 which is LTA Annual cumulates the amount which is earned by the employee by month on month. Eg: April : Rs. 2100, May : 2100, June : 2050.. the total amount of Rs. 6250 will be updated in /4E5 and it will check the LTA Annual and IT582 Exemption, whichever is least will be taken for tax exemption. Finally under section 10 - LTA exemption would be 6250, and next month it would be Rs. 8350.Because of this process,I am getting tax variation for a month on month. What i was asking is, the amount should be calculated for the year and it should exempt the final amount.

Give me some idea, what configuration i should do to resolve this.

[former_member140346]

Hi Vignesh,

If you want to get the complete exemption in one go, then you need to pay the amount maintained in IT0582 in one shot. For example, if you have maintained the Exemption amount as INR 10,000, then the amount of INR 10,000 needs to be paid in the first payroll run. In this way, the amount will be exempted in the first payroll itself. In your case, you can try to pay LTA through IT0015 as one time payment instead of as a monthly component in IT0008.

Best Regards,

Aman

[BalaAP]

Hi,

Aman is absolutely right. IT8 will get projected (IT15 will not be projected in YTD tax calculation). I think you can link multiple wage types under same tax code with T7INT9 table (for RAP indicator).

regards,

Bala.

[former_member140346]

Hi Vignesh,

The amount that you enter in IT0582 is the Exemption that the employee CAN claim. However, the employee can only claim this exemption if the wage type linked to the Tax Code of LTA (by default this is SLTA) has AT LEAST the amount that is given in IT0582. This is because, the function INLTA is coded to find the LEAST of the Exemptible Amount (IT0582) and the Payable Amount (IT0008 in your case) and that is used to give the LTA exemption. This is the standard system behavior.

Best Regards,

Aman

[Vignesh_D]

Dear Aman,

Thanks for your prompt response, as you said i have maintained the SLTA for the WT 1116, which i am being maintained through IT0008. Now i want the system to consider LTA exemption (IT0582) if the employee has given for the year in advance, so that the employee wont get the tax variations by month on month.

Suggest how to take this forward, what configuration do i need to do?

Regards,

Vignesh