New EDF submitted during fiscal year

In this example, the employee had not submitted an EDF in July and was therefore taxed at a flat rate of 15%. In August, he submits a new EDF with Rs 110,000 exemptions.

The illustration below shows how these exemptions are applied for August. Follow the steps below to verify the PAYE calculation checklist:

• Check the Pay Period: In this example, the PAYE Calculation Checklist is for the month of August

• Check the section “Your PAYE Particulars”: In this example, the employee has submitted an EDF and is a Citizen of Mauritius

• Step 1: Check the Emoluments for the month, for example: Salary, taxable transport, allowance, commission, and bonus.

• Step 2: Check the Total emoluments paid in previous months. In this example, it 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.

• (110000 * 2 / 13) + 0 + (0 * 1) As shown, illustration 3(a–c) correspond to the following:

• 3a → 110,000 shows a new EDF was submitted in August with a total exemption of Rs 110,000

• 3b → 2 refers to the month of August, which is the 2nd month of the fiscal year.

• 3c → 13 represents the fiscal year runs from July to June and has 13 months, including the end-of-year bonus.

• Step 4: Ensure that the Chargeable Income correctly corresponds to the difference between the Total emoluments (including Taxable benefits) and the less Reliefs and Exemptions.

• 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 for 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.