Differences

spay:hrmsprocguide:addition_of_a_taxable_deduction [2025/12/15 11:51] mclement		spay:hrmsprocguide:addition_of_a_taxable_deduction [2025/12/15 11:57] (current) mclement
Line 1:		Line 1:
-	===================== Addition of a taxable deduction================	+	===================== Addition of a taxable deduction=================
	In this example, in August, the employee has an absence deduction of Rs 4,601. This deduction reduces the taxable emoluments and the chargeable income, and therefore decreases the PAYE.		In this example, in August, the employee has an absence deduction of Rs 4,601. This deduction reduces the taxable emoluments and the chargeable income, and therefore decreases the PAYE.
	The illustration below shows how the EDF adjustment is applied in the month of August.		The illustration below shows how the EDF adjustment is applied in the month of August.
Line 16:		Line 16:
	*Step 5: Check the **Tax Charged (PAYE) ** from the Tax on Progressive Scale table.		*Step 5: Check the **Tax Charged (PAYE) ** from the Tax on Progressive Scale table.
	*Step 6: Check the **” Tax paid in previous months**. In this example, it refers to the tax of July, since the PAYE Calculation Checklist is for August.		*Step 6: Check the **” Tax paid in previous months**. In this example, it refers to the tax of July, since the PAYE Calculation Checklist is for August.
-	*Step 7: ** “Tax to be withheld in the month” ** represents the difference between the Tax Charged (PAYE) from the Tax on Progressive Scale table and the tax paid in previous months. In this example, the tax paid in the month is less than the tax paid in previous month due to the addition of the taxable deduction.	+	*Step 7: ** “Tax to be withheld in the month” ** represents the difference between the Tax Charged (PAYE) from the Tax on Progressive Scale table and the tax paid in previous months. In this example, the tax payable for the month is lower than the tax paid in the previous month due to the addition of the taxable deduction.
	{{:spay:hrmsprocguide:employee_additional_payroll_item_as_deductible_in_taxable_emoluments.png|}}		{{:spay:hrmsprocguide:employee_additional_payroll_item_as_deductible_in_taxable_emoluments.png|}}