SAP Knowledge Base Article - Preview

2921445 - Employee NPS exemption is not getting calculated in New Tax Regime

Symptom

  • NPS exemption is not getting calculated in payroll for the new Regime after applying the Budget changes 2020-21
  • Wage type /3I5 (Sec80CCD Ee) was not considering for tax exemption under Chapter VI deductions
  • Sec80CCD(1b) should be considered for tax exemption when choosing new tax regime as per Indian new tax regime. 
  • Contribution towards NPS in IT 0585 under line item “Contribution to pension scheme of Central Government” amount not taken for Chapter VI exemption
  • NPS contribution opted outside employment (IT0585) - Not considered in New tax option
  • Wagetype /3I5 - Sec80CCD Ee deduction based on IT0585 maintained in system is getting removed in Function INEXD


Read more...

Environment

  • Human Capital Management (HCM)
  • Payroll India
  • SAP R/3
  • SAP ERP Core Component
  • SAP ERP
  • SAP enhancement package for SAP ERP
  • SAP enhancement package for SAP ERP, version for SAP HANA

Product

SAP ERP Central Component all versions ; SAP ERP all versions ; SAP enhancement package for SAP ERP all versions ; SAP enhancement package for SAP ERP, version for SAP HANA all versions

Keywords

New Pension Scheme,Pension scheme, HINCALC0, INS80, INS88,IT0585, IT0587,Chapter VIA, PC00_M40_CALC_SIMU, PC00_M40_CALC,EENPS,Chapter VIA,Union Budget 2020-2021,Chapter VI,/3I1, /3I2, /3I5, /3I6, /3I9 , KBA , PY-IN , India , Problem

About this page

This is a preview of a SAP Knowledge Base Article. Click more to access the full version on SAP ONE Support launchpad (Login required).

Search for additional results

Visit SAP Support Portal's SAP Notes and KBA Search.