Tax Provisions – A summary of the activity

Through this activity, the HR administrator can record the employee tax provision details to compute tax for a tax Item defined under the tax type.

Computation of exemption amount: You can specify the tax exemption amount or exemption percentage for each tax item. Alternatively, you can specify the general exemption rule, which will specify the logic of deriving the tax exemption amount. This amount will be deducted from the employee’s gross income.

Retrieving values by selecting the default tax year: You can select the tax year from which you require to retrieve the tax provision details. These details can be edited and reused for the current tax year.

 Recording the tax provision details: Enter the following details

• The tax year and tax type to specify the exemption amount or the percentage of exemption for a tax Item.

• The age factor of the employee, whether the employee belongs to the above age or below age factor

•  The exemption amount or the exemption percentage for the tax item

• The general exemption rule based on which the exempt ion amount is derived. If the exemption amount, exemption percentage  and the general exemption rule are specified in the tax provision details, the general exemption rule overrides and is considered for the computation of  tax exemption.

Modifying the tax provision details: You can modify the existing tax provision details by changing the rule or exemption amount or exemption percentage. Modification of tax provision details is possible only if the ”Tax Parameter Modification” option is set to “‘Yes” in the “Tax Parameter” activity.

Viewing the tax provision details: You can view the tax provision details by retrieving the details based on search criteria. The search criteria that is used are the tax year, tax type and the age factor of the employee

Getting familiar with the pages inside  

6      Hyperlinked topics below 

Prerequisites  

Tax type and item should have been defined

What you can do in this activity

Record. modify, view  the tax provision details

Specify default values by selecting a default tax year