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1 What's New in Implementing Income Tax Declaration for India in Employee Central. . . . . . . . . . . . .4
2 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5 Declaring Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.1 Creating Proposals for Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
5.2 Creating Actuals for Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Submit Actual Link. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Take Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Q1 2019
What's New
The purpose of this handbook is to allow you to configure your system for the Income Tax (IT) Declarations
function, and to configure the ODATA API in order to facilitate integration between Employee Central and a third
party payroll system.
The Income Tax Act of India allows you to calculate the gross total income of an individual after considering income
of all types, including investments, from which certain deductions may be made. These deductions must be
distinguished from the exemptions detailed in Section 10 of the Act. While deductions are to be subtracted from
the gross total income, the exemptions do not form part of the income at all.
The IT Declarations function allows employees to declare their proposed investments at the following times:
Employees can also formulate proposal and actuals submissions using the deduction types or exemptions. They
can also submit their Actuals for final verification along with off-line copies of tax documents.
The IT Declaration function allows those in the role of Approver to verify off-line copies of tax documents, as
well the ability to approve or reject the documents.
Note
3.1 Prerequisites
Remember
As a customer, you do not have access to Provisioning. To complete tasks in Provisioning, contact your
Implementation Partner. If you are no longer working with an Implementation Partner, contact SAP Cloud
Support.
● Enable IT Declarations
● Enable Payroll Integration (if you want the Income Tax Declarations data to be replicated to Employee Central
Payroll)
You can import the new MDF for Declaration Type from Success Store. Alternatively, you can create the MDF
manually on the Manage Data UI.
How do you import MDF for Declaration Type from Success Store?
1. Go to Administration Tools. In the Company Processes & Cycles portlet, select Employee Files Import and
Export Data .
2. In the action dropdown menu, select Import Data.
3. Select the Success Store option.
4. In Success Store, select the package name (for example, Income Tax Declaration Content for India) and select
Import.
1. Go to Administration Tools and under Generic Objects, choose Manage Generic Objects.
2. Under Create New, select Declaration Type.
3. You enter the relevant details in the fields on the Declaration Type portlet, including the code and declaration
name.
4. Select Save.
The following are the list of Declaration Type Codes and Declaration Types for India. This list of values is created as
part of configuration. The values are shipped to the customer as a dataset; they are provided as a .csv file and can
be imported using the standard MDF export/import feature in Success Store.
As part of configuration, you create the investment types for Tax Declaration for each country. The investment
types and category vary for each country.
You can import the new MDF for Investment Type from Success Store. Alternatively, you can create the MDF
manually on the Manage Data UI.
How do you import MDF for Declaration Type from Success Store?
1. Go to Administration Tools. In the Company Processes & Cycles portlet, select Employee Files Import and
Export Data .
2. In the action dropdown menu, select Import Data.
3. Select the Success Store option.
4. In Success Store, select the package name (for example, Income Tax Declaration Content for India) and select
Import.
This package contains MDF for declaration types and investment types for Income Tax Declaration for India.
1. Go to Administration Tools and under Generic Objects, choose Manage Generic Objects.
2. Under Create New, select Investment Types for Tax Declaration.
3. Enter the relevant details in the fields on the Investment Types for Tax Declaration portlet:
○ Code
○ Country
○ Declaration Type
○ Investment Type
○ Status
○ Category
○ Workflow for Proposal: the default value for this field is No. If you choose Yes, the workflow will be triggered
with this proposal.
○ Effective Start Date
4. Select Save.
Creating a new investment type is a generic function, so an IT Declaration can be configured for any country.
The following is the list of Investment Type codes, Investment Types and its category for India. This list of values is
created as part of configuration. The values are shipped to the customer as a dataset; they are provided as a .csv
file and can be imported using the standard MDF export/import feature in Success Store.
Invest.
Type Invest. Type
Code Investment Type Cat. Code Investment Type Cat.
3 Medical Insr Premium (Senior Citi 80 54 Company Owned - City Population > 4 HRA
zen) lakhs
rents)
9 Deduction for dependent with se 80 61 Medical Expenditure for Very Senior 80
vere disability Citizen (Self)
11 Medical Treatment for Senior Citi 80 63 Medical Treatment for Very Senior Citi 80
zen zen
of Drug Abuse
16 Deduction in respect of rent paid 80 71 Salary as per provisions u/s 17(1) PETD
18 Prof Income from Foreign Sources 80 73 Profits in lieu of salary u/s 17(3) PETD
34 Subscription to notified Central 80C 91 Profits from business and profession IFOS
Govmt Savings certificate (NSC VIII
issue)
35 Contribution to notified unit linked 80C 92 Income from long term capital IFOS
insurance plan of LIC Mutual Fund gains(normal rate)
36 Contribution to provident fund as 80C 93 Income from long term capital IFOS
gains(special rate)
per PF Act,1925
37 Repayment of Housing loan 80C 94 Income from short term capital gains IFOS
38 Interest on NSC VIII issue 80C 95 Income from short term capital gains IFOS
(Listed Sec)
40 Subscription to notified mutual 80C 97 Income from interest (from fixed de IFOS
fund posits etc)
42 Subscription to notified deposit 80C 99 Tax deducted at source for income IFOS
scheme of the National Housing other than salary
Bank
43 Subsr to dpst schm of a pblc sectr 80C 101 Self-occupied/Deemed self-occupied IFHP
com or any constituted athry in House Property-Ded.-Interest u/s 24
house constrc
44 Contract for a deferred annuity on 80C 102 PHLP-Final Lettable Value IFHP
life of specified persons
45 Deduction from salary for a defer 80C 103 PHLP-Ded.-Interest u/s 24 IFHP
red annuity
48 Term Deposits under Section 80C 80C 107 WLHP-Final Lettable Value IFHP
49 Section 80C - 5 year time deposit 80C 108 WLHP-Ded.-Interest u/s 24 IFHP
under the Post Office Time Deposit
Rules 1981
50 Section 80C - Senior Citizens Sav 80C 110 WLHP-Repairs u/s 24 IFHP
ings Scheme Rules 2004
Context
You use this MDF to configure the time period during which you can create Actuals and Proposals. The window
period you configure is a recurring one. You do this as follows:
Procedure
1. Go to Admin Tools, and under Generic Object, choose Manage Generic Objects.
2. Under Create New, select Time Bound of Income Tax Declarations.
Example
In the example above, the proposal period is defined as being from April 1st to December 31st each year.
Therefore, proposals can only be created during this period.
You must create a new fiscal year variant and do the fiscal year variant mapping for the relevant country.
3.5.1 Variant
Procedure
1. Go to Admin Tools and under Generic Objects, choose Manage Generic Objects.
2. Under Create New, select Fiscal Year Variant.
3. You enter the relevant variant details in the fields on the Fiscal Year Variant portlet.
4. Choose Save.
The Year Shift value shown above relates to the Indian fiscal year, and how it overlaps with the calendar year.
The Indian fiscal year runs from April to March, so the final three months (periods) of the fiscal year are in a
different calendar year to the other 9.
Therefore, these three periods, 10, 11 and 12 are given a year shift value of -1. This means that they are assigned
to the previous year for fiscal reporting purposes.
Periods 1-9 are given a Year Shift Value of 0, as they do not need to be changed.
Note
The fiscal year variant is not restricted to 12 months in every case. The variant is based on a country's legal
requirements, so you can update quarterly periods of three months in the configuration for certain
countries. In the case of India, you must update the variant for 12 month periods.
Context
Once you have created the Fiscal year variant you must map it to the relevant country.
Procedure
1. Go to Admin Tools and under Generic Objects, select Manage Generic Objects.
2. Under Create New, select FiscalYearToCountryMap.
3. You enter the relevant variant details in the fields on the FiscalYearVariant portlet.
4. Choose Save.
You must now create a new workflow configuration object for the IT Declaration MDF and attach it to the MDF
definition. The creation steps are listed below.
Procedure
1. Go to Admin Tools, and under Manage Foundation Objects, choose Manage Organization Pay and Job
Structures.
Context
Procedure
1. Go to Admin Tools, and under Manage Employee Central Foundation Objects, choose Manage Organization, Pay
and Jobs Structures.
2. In the Search field, choose Workflow.
3. In the adjacent field, enter ItDeclWF.
4. Enter the relevant details in the fields on the Workflow: ITDeclWF portlet.
5. Choose Save.
Context
Procedure
1. Go to Admin Tools, and under Generic Object choose Configure Generic Object Definition.
2. In the Search field, choose Object Definition.
3. In the adjacent field, search for Income Tax Declaration.
4. In the Pending Data field, choose No.
5. In the Todo Category field, enter Income Tax Declaration Requests.
6. Choose Save.
Next Steps
If the workflow is not configured, all actuals submitted by employees will be sent for automatic approval.
If you want to use the attachment, you verify the documents on-line. If you do not want to use the attachments, you
can verify the documents off-line.
Remember
As a customer, you do not have access to Provisioning. To complete tasks in Provisioning, contact your
Implementation Partner. If you are no longer working with an Implementation Partner, contact SAP Cloud
Support.
Context
Next, you must assign role based permissions for Income Tax Declarations. You do this as follows:
Procedure
In this section, you will go through the steps necessary to declare your investments, by creating proposals for
investments, and actual investments.
Note
If your Income Tax Declaration function is integrated with Employee Central Payroll, you must follow specific
requirements for some fields when you enter proposals and actuals for investments in Employee Central.
Otherwise, the replication of data to Employee Central Payroll might not work properly. For information about
these specific requirements, please see section Master Data Replication to Employee Central Payroll [page
24].
Context
Procedure
Example
● Not Applicable: Indicates that approval is not required for the investment.
● Pending: Indicates the status of the declaration is pending after the workflow is triggered
● Approved: Indicates the Investment Declaration is approved by the workflow approver
● Rejected: Indicates the Investment Declaration is rejected by the workflow approver
There are two ways to create actuals; via the Submit Actuals link, or the Take Action button. You can follow either
path.
Procedure
Procedure
When employees belonging to an Indian legal entity declare their proposals and actuals for investments in
Employee Central, master data related to Income Tax Declaration is replicated from Employee Central to the
following infotypes in Employee Central Payroll for payroll calculation and year-end reports.
This section introduces the replication of Income Tax Declarations data from Employee Central to infotypes in
Employee Central Payroll.
If you need more information about these infotypes in Employee Central Payroll, please see the country-specific
documentation of Payroll India (PY-IN). Proceed as follows:
1. Open the SAP Help Portal and choose SAP Business Suite SAP ERP .
2. On the right hand side of the screen, go to the Application Help section and choose a language, for example
English.
3. On the SAP ERP screen, choose SAP ERP Central Component Human Resources Payroll (PY) . In this
screen, you can find Payroll India (PY-IN).
6.1 Prerequisites
The following prerequisites must be met for successful master data replication:
Remember
As a customer, you do not have access to Provisioning. To complete tasks in Provisioning, contact your
Implementation Partner. If you are no longer working with an Implementation Partner, contact SAP Cloud
Support.
Section 80 deductions are pre tax deductions from the Gross Taxable Income. The master data of declaration type
Section 80 Deductions will be replicated from Employee Central to the Section 80 Deductions (0585) infotype. This
infotype keeps a record of the proposed and actual contributions made by an employee to Section 80 subsections
and divisions.
Corresponding Employee
Infotype Field Central Field Notes
Consider Actual Contribu - To enable the checkbox (consider actual contributions for tax ex
tions for Tax Exemption emptions), The batch program (HINIS800) has to be run so that
the payroll driver will consider the actual contributions made by the
employee.
Contributions Investment Type Contribution items also correspond to the subsection divisions de
fined in table V_T7INI8
Tax Exemption - Tax exemption percentage for subsection divisions defined in table
V_T7INI9
Master data of declaration type Section 80 C Deductions will be replicated from Employee Central to the Section 80
C Deductions (0586) infotype. This infotype keeps a record of the proposed and actual investments made by an
employee to Section 80C.
Corresponding Employee
Infotype Field Central Field Notes
Consider Actual Invest - To enable this checkbox, the batch program (HINIS880) has to be
ments for Tax Rebate run so that the payroll driver will consider the actual contributions
made by the employee.
Investment/Contributions Investment Type Items under contributions also correspond to investment types de
fined in table V_T7INI2
Employees who join an organization in the middle of a financial year, and have already worked in another
organization in the same financial year, can declare any received income, tax paid, and tax exemptions to their
current employer.
The Previous Employment Tax Details (0580) infotype stores the information required by the current employer
regarding:
● Salary, exemption, contribution and deduction details of the employee pertaining to the previous employments
in the current financial year.
● Certain lifetime exemptions from all previous employments.
Start/From Date The hiring date or the start date of the fiscal year, -
whichever is the latest
LTA Carried Forward checkbox Number of LTA Exempt The LTA Carried Forward checkbox is au
tomatically selected if there is a value for
the investment type Number of LTA
Exempt in Employee Central.
● Housing Details: The type of accommodation availed of by the employee determines the tax calculation on
housing.
● Helper and Furniture Details: The system uses the information entered in this section to compute perquisite on
furniture and domestic help in the case of company leased accommodation (CLA) or company owned
accommodation (COA).
Start/From Date The current date (by default) or the date en -
tered by the employee.
If an employee chooses to declare income from sources other than their current employment, that income must be
taken into consideration for taxation during a regular payroll run. There are two types of income from other
sources:
Income from House Property (infotype 0584, subtype 0001) stores information about an employee's income from
house property.
It corresponds to the declaration type Income from House Property in the Income Tax Declarations portlet in
Employee Central. The amount that has been entered for each investment type under declaration type Income from
House Property in Employee Central is replicated to infotype 0584, subtype 0001.
Start/From Date Start date of the fiscal year or the For all the investment types except for Self-
joining date if the employee joins the occupied/Deemed self-occupied House Property-
company in the middle of the fiscal Ded.-Interest u/s 24, the validity period entered in
year Employee Central should fall within the validity pe
riod of the property type declared by the employee.
End/To Date End date of the fiscal year
Property Type Investment Type Each combination of Property Type and Deduction
Details in infotype 0584 subtype 0001 corresponds
Deductions Details to an investment type in Employee Central.
Income from Other Sources (infotype 0584, subtype 0002) stores information about any other income that an
employee has.
It corresponds to the declaration type Income from Other Sources in the Income Tax Declarations portlet in
Employee Central. The amount that has been entered for each investment type under declaration type Income from
Other Sources in Employee Central is replicated to infotype 0584, subtype 0002.
Start/From Date Start date of the fiscal year or the joining date if the em -
ployee joins the company in the middle of the fiscal year
Configure ODATA API settings, which allows integration between Employee Central and a third party payroll
provider.
7.2 Prerequisites
You have enabled the relevant role base permission ( RBP) that will allow you to complete the task.
7.3 Configuration
Context
Remember
As a customer, you do not have access to Provisioning. To complete tasks in Provisioning, contact your
Implementation Partner. If you are no longer working with an Implementation Partner, contact SAP Cloud
Support.
Procedure
4. Go to Permission Settings Manage Integration Tools , then select Admin access to OData API.
5. To access MDF object in the API, you grant Import Permission on Generic Objects as follows: Permission
Settings Administrator Permissions Metadata Framework , then select Import Permission on Metadata
Framework.
Note
This assumes you have enabled the Generic Objects/MDF Framework in provisioning.
If you need to access Employee Central, enable all OData permissions as follows:
1. Go to Employee Central API
2. Choose Select All
7.3.1 Testing
If you'd like to test the API, you can use Jmeter, which can perform http requests and works for all operating
systems.
Context
Procedure
1. Use the HTTP basic authentication style with the format username@companyId:password.
Example
Username: admin
Password: pwdString
Format: admin@EC1308EC3:pwd
Context
Procedure
1. Select the Composer tab, and where the user can edit the HTTP method and URL, you can put the relevant
authentication information in Request Headers. Ensure the credential is correctly set in the HTTP header.
2. Access the OData metadata document. To query the data of Income Tax Declarations, use HTTP GET.
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