Hi,
here my income tax slab created
How system is using this config to calculate income tax, please note that I read all notes and docs.erpnext and failed to understand.
By the way based on your inputs I will create a How to note and share the same in the forum, please if you are able to created successfully share your inputs.
If, in the middle of the year, you need to update any employee’s salary structure, simply create a new one and assign it to the employee. Remember to choose the date from when the new structure will be applicable. When the payroll is run, it will pick up the latest salary structure available for that period.
Apply it when creating the Salary Assignment.
You can also select which tax regime (or slab, as defined earlier) is applicable to the salary structure under the assignment under Income Tax Slab.
Thx a lot @rahy but still didn’t catch how systrm calculate income tax for the month using income tax slabs?
I appreciate if you can help. @michelle any advice, sorry to tag you, I thought you have some knowledge to sharr.
Doesn’t this answer your question? Because you said ok.
So I think people here assume you had your answers.
Or maybe you need to clarify more of your query…?
Sorry, I said ok as a workaround but still looking for my original question was about income tax formula using tax slab.
If any one can give calculation example using tax slab formula it will be very helpfull.
Our Tax rule is as below
House Rent: 50% of basic or monthly 25000 whichever is less is exempted.
Medical Allowance: 10% of basic or yearly 120000 whichever is less is exempted.
Conveyance: yearly 30000 is exempted.
And Taxable Income upto 300,000 is exempted
I tried Income Tax Slab first row condition
annual_taxable_earning - 300000 if 300000 <= .5 * B * 12 else .5 * B * 12 - 120000 if 120000 <= B * .1 * 12 else B * .1 * 12 -30000 > 300000
It didn’t work. It straightway exempted 300,000 exempted.