on 07-28-2015 10:23 AM
Hi Experts, As per 2015 budget, SAP has released Note 2168787 which contains many changes including the following. new section Sec. 80CCD- Additional deduction for National Pension System contribution. As per the Note I have maintained manual changes after updating the patch level to the required. Contribution for National pension increased from 1.5 lac to 2 lac. I have maintained the amount in 585 Infotype for National pension contribution.But the amount is not exempted for National pension scheme when I run payroll. It is not displaying under Chapter VI deductions in payslip. Recently we updated the patch level upto 90.Experts plz help Regards, P.Lakshman
Hello P.Lakshman
As per SAP note 2168787, to get the deduction for section 80ccd(1b), following need to be taken care of :-
•For providing the deduction under 80CCD(1), 10% of annual NPS Basis acts as one of the factors
•You need to ensure that Cumulation class ‘43’ & ‘44’ are checked / ticked for all relevant wage types which forms the monthly basis for NPS
•Ensure that there is forced retro for employees from Month of April to have correct value of annual NPS basis
•There will not be any extra/separate line item in Infotype 0585 for 80CCD(1B) contribution. You can continue to maintain the contribution towards NPS in IT 0585 under line item “Contribution to pension scheme of Central Government”
•Payroll will generate the following exemption Wage types:
/3I7 : 80CCD(1)
/3I9 : 80CCD(1B)
/3I5 : Combined Employee 80CCD Exemption ( /3I7 + /3I9 )
Please check the following of the above wage types are getting formed in your payroll RT.
Thanks and Kind Regards
Ramana
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Dear experts,
Can you please let me know what are all the wage types we need check the processing classes 43 & 44.
Apart from the 2168787 is there any other setting i have to follow.
Please help me on the same i am new to indian payroll
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Hello
•Check Cumulation Class '43' & '44' for all relevant wage types which are to be considered for employee's new pension scheme basis formation for employee and employer contribution respectively.
These wage types constitutes all salary components that are defined as salary for the purpose of the IT Act which includes basic salary, dearness allowance and any other special allowances.
Thanks and Kind Regards
Ramana
Message was edited by: Jayanti Venkata Ramana
Our systm current versions are as follows
SAP_HRCIN 600 0105 SAPK-600A5INSAPHRCIN Sub component SAP_HRCIN of SAP_HR
EA-HRCIN 600 0105 SAPK-600A5INEAHRCIN Sub component EA-HRCIN of EA-HR
With the above versions only we have implemented the note.
Followed the all configuration which has maintained in note release.
In info type 585 the line item has been changed to the 200000 as follows
I have made the cumulation class check for the 43&44 for basic pay allowance.
Before NPS amount entry in 587 infotype the chapter VI exemption as follows
Log is
I have made the investment in 587 info type as follows from 1st April, 2015
I have run the payroll, the log is as follows
but in log it was giving the value as 42336
Chapter VI exemption also not ge changed.
For other employee who are having agg of chapter VI is below 150000, when we are giving the valuel in 587 info type the exemption is giving only upto 151500.
Kindly let me know any other steps i have to follow.
Hi Sunny,
you can deduct NPS contribution in infotype 587 through salary. As per the sap note & manual instructions, the relevant changes were taken care in Form-16. But for pay-slip, you may have to check it.
Please check SCN threads/ SAP knowledge base from support.sap.com related to this.
regards,
Bala.
Hi Experts, As per 2015 budget, SAP has released Note 2168787 which contains many changes including the following. new section Sec. 80CCD- Additional deduction for National Pension System contribution. As per the Note I have maintained manual changes after updating the patch level to the required. Contribution for National pension increased from 1.5 lac to 2 lac. I have maintained the amount in 585 Infotype for National pension contribution.But the amount is not exempted for National pension scheme when I run payroll. It is not displaying under Chapter VI deductions in payslip. Recently we updated the patch level upto 90.Experts plz help Regards P.Lakshman
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