Definition
This infotype keeps a record of the proposed and actual contributions made by an employee towards Section 80 subsections and divisions.
Use
During payroll run, the tax deductions are made after checking the entries in this infotype.
Only one infotype record can exist for an employee for a financial year. When you are creating the infotype record, the system checks the Payroll period field in the Payroll control record. The financial year, to which this period belongs, will be defaulted in the infotype record. If you are modifying the infotype record, then the financial year, to which this period belongs, will be picked up for modification.
This infotype can be created/modified
Structure
When you are creating the infotype, the following information will be defaulted in the infotype record:
This displays the different subsections and divisions of Section 80 deduction.
This is the maximum limit for which an employee can avail the tax deduction for each type of division. An employee can contribute any amount to a particular division. But there is a maximum amount after which even if the employee contributes, it will not be considered for tax deduction.
This is the percentage of the contribution that is considered for tax deduction. A certain percentage of the contribution is considered for tax deduction. This percentage depends on the purpose or recipient of the contribution. For example, Section 80G has two divisions - Donation to CRY and Donation to PM's Relief Fund. Donation to CRY is 50% tax deductible and Donation to PM's Relief Fund is 100% tax deductible.
You will have to enter the employee specific information for Section 80 deductions.
This is the amount that an employee proposes to contribute. This could be done at the beginning of the year. It can be changed at any point of time. The payroll will read the latest entries, deduct it from the Gross Taxable Income and calculate tax accordingly.
This is the amount that an employee actually contributes. When an employee shows the proof of contribution, the amount is entered here.
You must select this checkbox, if you want the actual contributions to be considered for tax deduction. This is typically done at the end of the financial year, when the employees have produced the proof of contribution.
If you want to calculate the tax for all or selected employees based on actual Section 80 contributions, you can run the Batch Program for Section 80 (HINIS800) for those employees, instead of updating the infotype record of each employee.
Integration
Section 80 Deductions Infotype (0585) reads various views for the information defaulted here
If you run the
Batch Program for Section 80 (HINIS800) the Consider Actual Contributions for Tax Exemption checkbox will automatically get selected.See also:
Section 80 Deduction