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GPIND: Tax Credit87A Is Not Calculating As Per Taxable Income, Instead Calculating as flat 12500 (Doc ID 2709187.1)

Last updated on FEBRUARY 03, 2021

Applies to:

PeopleSoft Enterprise HCM Global Payroll India - Version 9.2 and later
Information in this document applies to any platform.


As per Indian tax rule whose Taxable income is greater than 2.5 lakh and less than 5 lakh, a Tax rebate of 12500 is applicable. But in peoplesoft, for payees whose Taxable income is 3 lac and his liability is 5000, system is calculating flat 12500.

The issue can be reproduced at will with the following steps:
1. Navigate to Navigate to Global Payroll & Absence Mgmt> Absence & Payroll Processing> Calculate Absence & Payroll, Process payroll for payee with taxable income 4Lakh
2. Navigate to Global Payroll & Absence Mgmt> Absence & Payroll Processing> Review Absence and Payroll Info > Results by Calendar Group, Observe the tax rebate 87A element for the payee, it is calculated as 12500




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