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GPIND: Global Payroll India Legislative Changes for Tax Year 2020-2021 (Doc ID 2635190.1)

Last updated on MAY 26, 2020

Applies to:

PeopleSoft Enterprise HCM Global Payroll India - Version 9.2 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 2020-2021. This solution applies to customers on PeopleSoft Release {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 25th May 2020) 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 2020-2021 1st April 2020 Finance bill proposes to provide for an option to an individual and Hindu
Undivided Family (HUF) taxpayers to apply lower tax rates as per a new tax regime. Whereas the current slab rates, surcharge and health and education cess remain unchanged. The new tax regime is optional. Individuals who opt to claim available exemptions/ deductions would be taxed as per the existing rates.

The effective tax rate for individuals with taxable income up to Rs 5 lakh
would be nil under both the new and the existing tax regime as these
individuals would be able to avail the tax-benefit of rebate up to Rs 12,500 under Section 87A under both regimes

The Income-tax slab rates applicable under the new tax regime would be:
Slab Rates Rate of Tax
Up to INR 250,000 Nil
INR 250,001 to INR 500,000 05%
INR 500.001 to INR 750,000 10%
INR 750,001 to INR 1,000,000 15%
INR 1,000,001 to INR 1,250,000 20%
INR 1,250,001 to INR 1,500,000 25%
Above INR 1,500,001 30%
Surcharge and education cess would apply as per existing rates.

<Bug 31017127>

 PUM Image 34

 

REDUCTION OF STATUTORY PF CONTRIBUTION FOR MAY-JUL 2020 MAY-JUL 2020 Government has reduced statutory EPF contribution of private sector employers
and employees from current mandated 12% to 10% for next 3 months. The EPF cut
will be applicable for the month of June, July and August 2020. However, for
government PSUs the employers contribution will remain at 12% but PSU
employees can pay 10%. For all employees covered under the EPF Scheme, the
rate of employer¿s and employee¿s contribution is 12% of monthly basic pay.
Reduction in the employee's contribution from 12% to 10% may increase the
take home salary or the cash-in-hand of the employee.

<BUG 31347886>

PRP Link:

https://support.oracle.com/epmos/faces/PatchResultsNDetails?releaseId=27001300090200&requestId=23586480&patchId=31347886&languageId=0&platformId=2000

 PUM Image 35
         
         
         
         
         

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

Actions

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

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