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Withholding for Income Tax

Former Member
0 Kudos

Hi All

I want to make customization of TDS for Section 192 B. I want to know the necessary steps.Please Guide me.

Calculation Percentage is AS PER CALCULATIONS.

Regards

Rahul Bhardwaj

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Former Member
0 Kudos

Hi,

You need to maintain configure Withholding Tax in the following menu path:

Fin.Acc -> Fin. Acc. Global Setting -> Withholding Tax -> Extended Withholding Tax -> Basic Settings -> Calculation -> Withholding Tax Type -> Define Withholding Tax Type for Invoice Posting

Click on new entry,

In that you can maintain withholding tax as E1 and Name 194c - contractor.

and maintain the Accumulation type as monthly Quarterly or Yearly as you want.

Then assign the withholding tax code in that vendor master.

Try. If you have doubt on this revert me back.

Regards,

Mohan

Former Member
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Thanks for your Reply Sir. But I want to calculate TDS on Salary but i am not sure that it is calculated in FI or HR.The Solution you gave me is already known to me but if it is fine what is the percentage in case of AS PER CALCULATION Scenario.

Former Member
0 Kudos

Rahul,

You are going to give salary to your employee. Your employees are treated as Vendor only. So you need to create Vendor master for all your employees and need to assign Withholding Tax code in their master data.

Then the TDS will calculate while you give salary.

Regards,

MOhan.

former_member2342
Active Contributor
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Dear

TDS on salaries is done from HR side if HR is implemented. We do not configure any thing from FI side even though employee is a vendor.

Regards

Former Member
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yes sir i have already maintained Vendor Group but the given percentage by the user is AS PER CALCULATION. so I want to know that what percentage rate i have to maintained in Defining Tax Code in IMG

Former Member
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Thanks for your Valuable Reply Sir. It is fine with me because here HR is not implemented.

Thanks Again Sir

former_member2342
Active Contributor
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Dear

When HR is not implemented you will be having legacy system. In that you might be having some programmes to calculate income tax. From there you can take data and upload the same into SAP.

Regards

Former Member
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can you tell me sir that the program used are standard SAP programs or Customized programs. If standard please give me their names

Regards