Income Tax Pay Roll based on Amount and Percentage

Frappe HR
1

Hello, everyone I have successfully, made formulas and I have succeeded in generating payroll, can some help how I can put the amount and percentage in tax slabs? as erpnext just takes the percentage

Taxable Income Income Tax Rate in Pakistan
Where taxable income does not exceed Rs600,000 The tax rate is zero
Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 2.5 per cent of the amount exceeding Rs 600,000
Where taxable income exceed Rs1,200,000 but does not exceed Rs2,400,000 Rs15,000 + 12.5 per cent of the amount exceeding Rs1,200,000
If taxable income exceeds Rs2,400,000 but does not exceed Rs3,600,000 Rs165,000 + 20% of the amount exceeding Rs2,400,000
Where taxable income exceeds Rs3,600,000 but does not exceed Rs6,000,000 Rs405,000 + 25 per cent of the amount exceeding Rs3,600,000
If taxable income exceeds Rs6,000,000 but does not exceed Rs12,000,000 Rs1,005,000 + 32.5 per cent of the amount exceeding Rs6,000,000
Where taxable income exceeds Rs12,000,000 Rs2,955,000 + 35 per cent of the amount exceeding Rs12,000,000
@Tariq151 or anyone else who can help?
2

Hello Muzzammil

You just put the percentage of the relevant slab and ERPNext will calculate the correct amount of tax deductible for you. Try a re-run of the payroll.

1 Like
3

tariq sb fix. + percentage cannot be added to erpnext slabs

4

I would suggest you use formulas in salary components. The tax slab feature as far as I’ve seen doesn’t support this.

I also wanted to do the same thing, but after searching for a long time realised it may not be possible.

5

Aren’t the fixed amounts here just the sums of the previous brackets? If so, you should be able to just enter the percentages and ERPNext will do the calculations automatically.

6

i fear no , but i have read one of your another posts to use staticial components, let me try those

7

Do whatever works for you, but I just tested on my system with simple brackets and the results were correct. No statistical components needed.

Screenshot 2022-08-29 at 11.04.14 AM
Screenshot 2022-08-29 at 11.04.14 AM2146×1338 207 KB

8

dear,
Rs15,000 + 12.5 per cent of the amount exceeding Rs1,200,000

12.5 +15000, 15K is fixed. and it will take the whole percentage, but the rule is 12.5 percent of the amount exceeding 12.

9

Right, and the Rs. 15,000 is just the sum of the previous slabs:
0 to 600,000 = 600,000 @ 0% = 0
600,000 to 1,200,000 = 600,000 @ 2.5% = 15,000

0 + 15,000 = 15,000 (which equals the fixed amount for the third slab)

We can do this for the next slab too:
1,200,000 to 2,400,000 = 1,200,000 @ 12.5% = 150,000

0 + 15,000 + 150,000 = 165,000 (which equals the fixed amount of the fourth slab)

The slab after that:
2,400,000 to 3,600,000 = 1,200,000 @ 20% = 240,000

0 + 15,000 + 150,000 + 240,000 = 405,000 (which equals the fixed amount of the fifth slab)

In other words: The fixed amounts are just the sums of the previous slabs. This is how marginal bracket systems always work. The ERPNext Income Tax Slab doctype was designed to work with exactly the kind of situation you have there. Enter the values as I’ve shown in the screenshot above and you’ll get the right results.

10

thanks let me test

11

No, just the percentage, as @peterg is suggesting. The system will automatically do the rest.