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GPIND: Global Payroll India Legislative Changes for Tax Year 2017-2018 (Doc ID 2234402.1)

Last updated on MAY 11, 2018

Applies to:

PeopleSoft Enterprise HCM Global Payroll India - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.

Details

The intent of this document is to describe solutions for problems or questions related to Global Payroll India Legislative Changes for Tax Year 2017-2018. This solution applies to customers on PeopleSoft Release {9.1 & 9.2}. This is a living document and will be updated as new solutions are created; please review thoroughly on a regular basis.

(Last updated March 10th 2017) Summary Table - see below for details:

Please see table below for details.

Legislative Change Effective Date Additional Info P1 Patch Fix Target Date Targeted into PUM Image/Patchset
 LEGISLATIVE CHANGES FOR FINANCIAL YEAR 2017-2018 1st April 2017

 1. There is a change in the tax rates for individuals who is less than 60 Yrs New Tax rate for 250,001 – 500,000 is 5% & Individuals above 60 Yrs New Tax rate for 300,001 – 500,000 is 5%.

2. It is proposed to levy a surcharge of 10% of the tax liability, if taxable income is between Rs 50 lakhs and Rs. 1 Crore for an individual. Marginal relief on this new surcharge is applicable similar to the existing marginal relief for Rs 1 Crore and above.

3. The existing rebate under Section 87A of Rs 5000 is reduced to Rs 2500. This rebate shall be available to individuals whose total income does not exceed Rs 350,000 earlier it was Rs 500,000.

4. Amendment to Section 80CCG

5.Amendment to Section 71

Note: Please note The Finance Bill 2017 tabled in Parliament is yet to receive the royal assent from both the houses and the President.
Any changes to the aforesaid amendments shall need to be addressed separately.

Release 9.2:

Patch 25487874

 

Release 9.1:

Patch 25487824

 HCM 9.2.22, ETA 21st Apr'2017

GP 9.1 Update 2017-B, ETA 28th Apr'2017

LEGISLATIVE CHANGES FOR ADMIN EPF & EDLI Charges 1st April 2017

Administration charges for EPF:
The administrative charges payable by the employer for the purpose of Para 30 and Sub-Para 1 of Para 38 of EPF scheme is reduced from the current rate 0.85% to 0.65% with effect from 01st April 2017.


Administration charges for EDLI Scheme:
The administrative charges payable by the employer for the purpose maintaining EDLI has been reduced from current rate of 0.01% to 0 %( Nil)

Release 9.2:

Patch 26398166

PRP Posted

Release 9.1:

Patch 26398177

P1 Patch Posted

 HCM 9.2.24, ETA 6th Oct 2017

GP 9.1 Update 2017-D, ETA 29th Sep'2017

 ECR VER 2.0 INTRODUCED BY EPF - CHANGES TO ECR REPORT   The existing ECR (Electronic Challan cum Return) report is modified by The Employees' Provident Fund Organization (EPFO).

The important changes to the existing report are PF membership ID is replaced with Universal Account Number UAN. In addition a new field for gross wages added in addition to the existing fields.
The existing single report has 25 fields with both regular and retro details.

This has been split into 2 reports in version 2.0 with the first one
providing details of regular earnings and the second one with retro payments.


New fields that are added to the Report 1 are Employee UAN, Gross Wages and EDLI Wages New fields that are added to report 2 are Arrear EPS wages and Arrear EDLI wages Personal data fields like Father's name, DOB,DOJ,Gender,Date of exit and
Reason for exit are removed from the existing report.

Release 9.2:

Patch 25467517

Release 9.1:

Patch 25467490

HCM 9.2.22, ETA 21st Apr'2017

GP 9.1 Update 2017-B, ETA 28th Apr'2017

GP INDIA - AMENDMENTS TO QUARTERLY E-TDS STATEMENTS - FORM 24Q  

As per the Latest version 5.5 for Quarters (Q1-Q3) and version 5.8 for Q4 of
the File format for Form 24Q released by NSDL, there are some changes in the
Data Structure of the e-TDS file.

Following is the summary of changes:

Addition of new fields for Form 24Q ¿ Q4 under Annexure II (i.e. salary
details) as below:

1. Aggregate rent payment exceeds rupees one lakh during the previous year:

¿ The above is applicable for regular as well as correction statements
pertaining to FY 2016-17 onwards.

¿ If the rent payment exceeds rupees one lakh, in such case, flag value 'Yes¿
.
is to be mentioned under the above referred field, else flag value 'No¿ is to
.
be mentioned.

¿ If the flag value is 'Yes¿, in such case, PAN and Name of the landlord is
to be mandatorily mentioned. The details (i.e. PAN and Name) of maximum to
four landlords can be mentioned.

2. Deduction of interest under the head 'Income from house property¿ (which
is paid to the lender):

¿ The above is applicable for regular as well as correction statements pertaining to FY 2016 - 17 onwards.

¿ If the interest is paid to the lender, in such case, flag value 'Yes¿ is to be mentioned under the above referred field, else flag value 'No¿ is to be mentioned.

¿ If the flag value is 'Yes¿, in such case, PAN and Name of the lender is to be mandatorily mentioned. The details (i.e. PAN and Name) of maximum to four lenders can be mentioned.

3. Deduction of tax from contributions paid by the trustees of an approved superannuation fund:

¿ The above is applicable for regular as well as correction statements pertaining to FY 2013-14 onwards.

¿ If the contribution is paid by the trustee, in such case, flag value 'Yes¿ is to be mentioned under the above referred field, else flag value 'No¿ is to be mentioned.

¿ If the flag value is 'Yes¿, in such case, below fields are applicable and values in all these fields is to be mandatorily mentioned.

o Name of the superannuation fund
o Date from which the employee has contributed to the superannuation fund
o Date to which the employee has contributed to the superannuation fund
o The amount of contribution repaid on account of principal and interest
o The average rate of deduction of tax during the preceding three years
o The amount of tax deducted on repayment
o Gross total income including contribution repaid on account of principal and interest from superannuation fund.

 

Release 9.2:

Patch 25139598

Release 9.1:

Patch 25139591

 HCM 9.2.22, ETA 21st Apr'2017

GP 9.1 Update 2017-B, ETA 28th Apr'2017

To stay up with the legislative changes that will impact your PeopleSoft Application visit <https://blogs.oracle.com/psftlegupdates/>

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 You need to apply the critical patches / GP Updates whenever their legislative fixes are posted.

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