Leave Encashment & tax deduction as per slab through off cycle pay roll

[Former Member]

Hi Experts,

Clients wants to pay leave encashment through off cycle payroll to the continued employees not the separated employees.

The scenario is as following.

The employee can claim for his leave encashment & can be paid to him as & when approved.

Let's say employee leave encashment amount to be paid is 1,00,000, but his annual total income falling under the range 5laks-8lakhs, so based on the slab rate a flat 20%  as TDS should be deducted from his leave encashment amount,i.e he should get 80,000, & should pay 20,000 as income tax.

Please help me to find out a solution for this.

Thanks & Regards,

Prashanti Swain

[venkateshorusu · Accepted solution]

It can be handled through INBTD function Go through below link, It helps you to resolve the issue.

Tax deduction for one time payments - ERP Human Capital Management - SCN Wiki

Regards

Venkatesh

[Former Member · Accepted solution]

Dear Venkatesh,

Thanks for the reply.

Thanks & Regards,

Prashanti Swain

[Ozaimi · Accepted solution]

This link is not working

[Former Member]

Hi,

for reference check these documents for leave encashments,

Best Regards,

Praneeth kumar

[Former Member]

Thanks Praneeth,

I have already got the solution through some work around, Thanks for sharing the link.

I am closing the thread.

Thanks & Regards,

Prashanti Swain