Tax Setup – An overview

The Tax Setup- India component enables you to maintain the income tax setup.  The various activities that are involved in maintaining the tax setup are briefly explained below.

Create Tax Year: This activity enables you to define a tax year for an organization unit. Tax year refers to the period for which the tax is computed and paid to the tax authorities. Creating a tax year is a prerequisite to the creation and maintenance of the tax structure.  Creating a tax year involves specifying a unique code to identify the tax year, define the span of time for which the tax year is effective, by specifying the start and end dates.

Edit Tax Year: This activity is used to modify the details of a tax year record. Apart from modifying records, you can also delete the record from the database.

View Tax Year: Tax year is the period for which the tax is computed and paid. Through this activity, you can view all the details of various tax year records that have been created for the login tax setup unit.  Viewing tax year records involves specifying the search criteria based on which the system displays the records satisfying the search criteria.

Creating a Rate Table: Through this activity, you can specify a rate table based on which the employee’s tax is computed. The Income tax act specifies these rates for each financial year. It involves specifying the tax year and the range of income(s) for which the rate table is applicable.

Recording Tax Provisions: Through this activity. you an record the tax provisions details. You can also modify and view  the tax provision details. You can specify default values in the multiline by selecting a default tax year. The values from the selected default tax year is displayed in the page and these values can be saved as such or modified for the current year.

Getting familiar with the activities inside