Differences

spay:hrmsprocguide:addition_of_a_taxable_deduction [2026/01/29 14:31] ndomingue		spay:hrmsprocguide:addition_of_a_taxable_deduction [2026/02/04 09:27] (current) ndomingue
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	===================== 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 6,901. 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.
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	*Step 2: Check the **Total emoluments paid in previous months**, which in this example refers to the July emoluments, since the PAYE Calculation Checklist is for the month of August.		*Step 2: Check the **Total emoluments paid in previous months**, which in this example refers to the July emoluments, since the PAYE Calculation Checklist is for the month of August.
	*Step 3:  Ensure that the employee’s **Reliefs and Exemptions** are correctly applied according to their EDF.		*Step 3:  Ensure that the employee’s **Reliefs and Exemptions** are correctly applied according to their EDF.
-	* **(0 * 2 / 13) + 0 + (15,833.33 * 1)** are illustrated via 3(a–d) and correspond to the following:	+	* **(110000 * 2 / 13) + 0 + (0 * 1)** are illustrated via 3(a–e) and correspond to the following:
-	*3a → **0** indicates that the EDF was submitted with only the self exemption.	+	*3a → **110,000** shows that an EDF was submitted in August with a total exemption of Rs 110,000.
	*3b → **2** corresponds to August, which is the 2nd month of the fiscal year.		*3b → **2** corresponds to August, which is the 2nd month of the fiscal year.
	*3c → **13** represents the fiscal year from July to June, which includes 13 months because of the end-of-year bonus.		*3c → **13** represents the fiscal year from July to June, which includes 13 months because of the end-of-year bonus.
	*3d → **0** indicates that there is no EDF adjustment for previous months.		*3d → **0** indicates that there is no EDF adjustment for previous months.
		+	*3e → **0 * 1** indicates that no EDF adjustment is spread over the remaining months of the fiscal year.
	*Step 4: Ensure that the **Chargeable Income** corresponds to the difference between the total emoluments (including taxable benefits, if any) and the less Reliefs and Exemptions.		*Step 4: Ensure that the **Chargeable Income** corresponds to the difference between the total emoluments (including taxable benefits, if any) and the less Reliefs and Exemptions.
	*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 payable for the month is lower than the tax paid in the 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 Absence deduction as taxable deduction.
		+
		+	{{:spay:hrmsprocguide:employee_with_additional_payroll_item_as_deductible_taxable_emolumentsscreenshot_2026-02-04_092447.png|}}
-	{{:spay:hrmsprocguide:paye_calculation_checklist_-_addition_of_a_taxable_deduction.png|}}