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SUCCESSFACTORS EMPLOYEE CENTRAL | CONFIDENTIAL

SAP Success Factors Employee Central Payroll


Document Version: Q1 2019 – 2019-04-05

Implementing Income Tax Declaration for India in


Employee Central
© 2019 SAP SE or an SAP affiliate company. All rights reserved.

THE BEST RUN


Content

1 What's New in Implementing Income Tax Declaration for India in Employee Central. . . . . . . . . . . . .4

2 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3 Setting up Income Tax Declarations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6


3.1 Prerequisites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.2 Configuring Declaration Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.3 Configuring Investment Types for IT Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
3.4 Configuring the Window Period for Actuals Creation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
3.5 Configuring Fiscal Year Variant and Country Mapping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Variant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Country Mapping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.6 Configuring Workflow for IT Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Create a Dynamic Role. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Creating a New Workflow Configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Attaching the IT Declaration MDF to the MDF Workflow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4 Role Based Permissions for Income Tax Declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

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

6 Master Data Replication to Employee Central Payroll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24


6.1 Prerequisites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
6.2 Replication to Section 80 Deductions (0585) Infotype. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
6.3 Replication to Section 80 C Deductions (0586) Infotype. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
6.4 Replication to Previous Employment Tax Details (0580) Infotype. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
6.5 Replication to Housing (HRA/CLA/COA) (0581) Infotype. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
6.6 Replication to Income from Other Sources (0584) Infotype. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Income from House Property (IT0584, subtype 0001). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Income from Other Sources (IT0584, subtype 0002). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

7 Configuring ODATA API Settings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35


7.1 Your Task. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
7.2 Prerequisites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
7.3 Configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Implementing Income Tax Declaration for India in Employee Central


2 CONFIDENTIAL Content
Testing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
7.4 Authenticating ODATA API. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
7.5 Accessing the ODATA Metadata. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Implementing Income Tax Declaration for India in Employee Central


Content CONFIDENTIAL 3
1 What's New in Implementing Income Tax
Declaration for India in Employee Central

This document describes changes to this guide for recent releases.

Q1 2019

What's New

No changes since Q2 2015

Implementing Income Tax Declaration for India in Employee Central


4 CONFIDENTIAL What's New in Implementing Income Tax Declaration for India in Employee Central
2 Introduction

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:

● Beginning of the financial year


● Upon joining the company
● Upon changing their declarations of proposed or actual contributions

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

All Screenshots are sample screens.

Implementing Income Tax Declaration for India in Employee Central


Introduction CONFIDENTIAL 5
3 Setting up Income Tax Declarations

3.1 Prerequisites

The following options have been enabled in Provisioning:

 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 Fiscal Year

● Enable Payroll Integration (if you want the Income Tax Declarations data to be replicated to Employee Central
Payroll)

3.2 Configuring Declaration Types

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.

Implementing Income Tax Declaration for India in Employee Central


6 CONFIDENTIAL Setting up Income Tax Declarations
This package contains MDF for declaration types and investment types for Income Tax Declaration for India.

How do you create declaration types?

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.

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Setting up Income Tax Declarations CONFIDENTIAL 7
Declaration Type Code Declaration Type

S80 Sec 80 Deductions

S80C Sec 80 C Deductions

PETD Previous Employment Tax Details

HRA Housing (HRA/CLA/COA)

IFHP Income from House Property

IFOS Income from Other Sources

3.3 Configuring Investment Types for IT Declaration

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.

Implementing Income Tax Declaration for India in Employee Central


8 CONFIDENTIAL Setting up Income Tax Declarations
How do you create declaration investment types?

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.

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Setting up Income Tax Declarations CONFIDENTIAL 9
 Note

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.

1 Contribution to Certain Pension 80 52 Rented Accommodation-Metro HRA


Funds

2 Medical Insr Premium (Non-Senior 80 53 Company Leased HRA


Ctz)

3 Medical Insr Premium (Senior Citi­ 80 54 Company Owned - City Population > 4 HRA
zen) lakhs

4 Medical Insr Premium (Payment on 80 55 Company Owned - Other Cities HRA


behalf of parents non-senior Ctz)

5 Medical Insr Premium (Payment on 80 56 Number of Helpers HRA


behalf of parents senior citizen)

6 Preventive Health Checkup (Self) 80 57 Helper Cost HRA

7 Preventive Health Checkup (Pa­ 80 58 Total Furniture Value HRA

rents)

8 Deduction for dependent with disa­ 80 59 Furniture Hiring Charges HRA


bility

9 Deduction for dependent with se­ 80 61 Medical Expenditure for Very Senior 80
vere disability Citizen (Self)

Implementing Income Tax Declaration for India in Employee Central


10 CONFIDENTIAL Setting up Income Tax Declarations
Invest.
Type Invest. Type
Code Investment Type Cat. Code Investment Type Cat.

10 Medical Treatment 80 62 Medical Expenditure for Very Senior 80


Citizen (Parents)

11 Medical Treatment for Senior Citi­ 80 63 Medical Treatment for Very Senior Citi­ 80
zen zen

12 Repayment of Interest on Loan for 80 64 Donation to Swachh Bharat Kosh 80


Higher Education

13 Donation to CRY 80 65 Donation to Clean Ganga Fund 80

14 Donation to PM's Relief Fund 80 66 Donation to National Fund of Control 80

of Drug Abuse

15 Donation to National Children's 80 67 Sukanya Samriddhi Scheme 80C


Fund

16 Deduction in respect of rent paid 80 71 Salary as per provisions u/s 17(1) PETD

17 Donation for Scientific/Rural Dev­ 80 72 Value of perquisites u/s 17(2) PETD


lopmnt

18 Prof Income from Foreign Sources 80 73 Profits in lieu of salary u/s 17(3) PETD

19 Remuntn reci for services rendered 80 74 Exemptions u/s 10 PETD


abroad

20 Deduction for self disability 80 75 Professional Tax PETD

21 Deduction for self severe disability 80 76 Provident Fund PETD

22 Contribution to pension scheme of 80 77 Income Tax Deducted PETD


Central Government

23 Interest from savings bank account 80 78 Surcharge Deducted PETD


(Sec 80TTA)

24 Rajiv Gandhi Equity Saving Scheme 80 79 Education Cess Deducted PETD

25 House Loan Interest Deduction U/S 80 80 Medical Exemption PETD


80EE

26 Payment towards Life Insurance 80C 81 Leave Encashment Exemption PETD


Policy Amount

27 Contribution to Superannuation 80C 82 Gratuity Exemption PETD


Fund

Implementing Income Tax Declaration for India in Employee Central


Setting up Income Tax Declarations CONFIDENTIAL 11
Invest.
Type Invest. Type
Code Investment Type Cat. Code Investment Type Cat.

28 Subscription to notified Central 80C 83 VRS Exemption PETD


Government security (NSS)

29 Contribution to ULIP 80C 84 Number of LTA Exempt PETD

30 Subscription to approved equity 80C 86 Employer NPS Contribution PETD


shares or debentures (Infrastruc­
ture)

31 Subscription to approved mutual 80C 87 Employee NPS Contribution PETD


fund (Infrastructure)

32 Contribution to Public Provident 80C 88 Employer NPS Basis PETD


Fund

33 Contribution to Recognized Provi­ 80C 89 Employee NPS Basis PETD


dent Fund

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)

39 Contribution to notified annuity 80C 96 Income from dividends IFOS


plan of LIC

40 Subscription to notified mutual 80C 97 Income from interest (from fixed de­ IFOS
fund posits etc)

41 Subscription to notified pension 80C 98 Income from other sources IFOS


fund

42 Subscription to notified deposit 80C 99 Tax deducted at source for income IFOS
scheme of the National Housing other than salary
Bank

Implementing Income Tax Declaration for India in Employee Central


12 CONFIDENTIAL Setting up Income Tax Declarations
Invest.
Type Invest. Type
Code Investment Type Cat. Code Investment Type Cat.

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

46 Tuition fee - child 1 80C 105 PHLP-Deduc-Repairs u/s 24 IFHP

47 Tuition fee - child 2 80C 106 PHLP-Deduc-Others u/s 24 IFHP

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

51 Rented Accommodation-NonMetro HRA 111 WLHP-Others u/s 24 IFHP

3.4 Configuring the Window Period for Actuals Creation

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.

Implementing Income Tax Declaration for India in Employee Central


Setting up Income Tax Declarations CONFIDENTIAL 13
3. Choose the relevant submission type, either Actual or Proposal.
4. Enter the relevant start and end dates, as well as the status for the chosen submission type.
5. Coose Save.

 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.

3.5 Configuring Fiscal Year Variant and Country Mapping

You must create a new fiscal year variant and do the fiscal year variant mapping for the relevant country.

The creation steps are listed below.

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.

Implementing Income Tax Declaration for India in Employee Central


14 CONFIDENTIAL Setting up Income Tax Declarations
 Example

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.

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Setting up Income Tax Declarations CONFIDENTIAL 15
3.5.2 Country Mapping

Context

Once you have created the Fiscal year variant you must map it to the relevant country.

You do this as follows:

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.

3.6 Configuring Workflow for IT Declaration

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.

3.6.1 Create a Dynamic Role

Procedure

1. Go to Admin Tools, and under Manage Foundation Objects, choose Manage Organization Pay and Job
Structures.

Implementing Income Tax Declaration for India in Employee Central


16 CONFIDENTIAL Setting up Income Tax Declarations
2. In the Create New drop-down menu, select Dynamic Role.
3. Enter the relevant details for the approver.
4. Choose Save.

3.6.2 Creating a New Workflow Configuration

Context

To create a new workflow configuration, do the following:

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.

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Setting up Income Tax Declarations CONFIDENTIAL 17
3.6.3 Attaching the IT Declaration MDF to the MDF Workflow

Context

To attach the IT Declaration MDF to the MDF workflow, do the following:

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.

Implementing Income Tax Declaration for India in Employee Central


18 CONFIDENTIAL Setting up Income Tax Declarations
 Note

Ensure that in Provisioning, you have enabled the Attachment Manager.

 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.

Implementing Income Tax Declaration for India in Employee Central


Setting up Income Tax Declarations CONFIDENTIAL 19
4 Role Based Permissions for Income Tax
Declaration

Context

Next, you must assign role based permissions for Income Tax Declarations. You do this as follows:

Procedure

1. Login to the system as Admin.


2. Go to Admin Tools.
3. Under Security Group, choose Manage Permission Roles.
4. Under Permission Role List, choose the role for which you need to set permissions for Income Tax
Declarations.
5. Choose Permission, set the required permissions and select Done.
6. Choose Save Changes.

Implementing Income Tax Declaration for India in Employee Central


20 CONFIDENTIAL Role Based Permissions for Income Tax Declaration
5 Declaring Investments

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].

5.1 Creating Proposals for Investments

Context

To create proposals for investments, do the following:

Procedure

1. Go to Employment Information page of an employee.


2. On the Income Tax Declaration portlet of the page, select Edit.
3. Choose a Declaration Type.
4. Choose the relevant investment type from the drop-down menu.
5. Choose Save.

 Example

The proposal is created and displayed as in the example below.

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Declaring Investments CONFIDENTIAL 21
Possible Approval Status

There are four possible Approval Statuses, as follows:

● 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

5.2 Creating Actuals for Investments

There are two ways to create actuals; via the Submit Actuals link, or the Take Action button. You can follow either
path.

5.2.1 Submit Actual Link

Procedure

1. Go to the Employment Information page of an employee.


2. Go to the Income Tax Declaration Portlet.
3. Choose the proposal for which you need to create an actual, and choose the Submit Actuals link.
4. Enter the amount, and upload an attachment if necessary.
5. Choose Submit.

Implementing Income Tax Declaration for India in Employee Central


22 CONFIDENTIAL Declaring Investments
5.2.2 Take Action

Procedure

1. Go the Employment Information page of an employee.


2. Choose Take Action.
3. Choose Income Tax Actual Declarations.
4. Enter the relevant details.
5. Choose Submit.

Implementing Income Tax Declaration for India in Employee Central


Declaring Investments CONFIDENTIAL 23
6 Master Data Replication to Employee
Central Payroll

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.

● Section 80 Deductions (0585) infotype


● Section 80 C Deductions (0586) infotype
● Previous Employment Tax Details (0580) infotype
● Housing (HRA/CLA/COA) (0581) infotype
● Income from Other Sources (0584) Infotype
○ Income from House Property (subtype 0001)
○ Income from Other Sources (subtype 0002)

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:

● System requirements: EA-HR 608 SP14 (HR Renewal 2.0 SP14)


● Payroll Integration has been enabled in Provisioning.

 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.

Implementing Income Tax Declaration for India in Employee Central


24 CONFIDENTIAL Master Data Replication to Employee Central Payroll
6.2 Replication to Section 80 Deductions (0585) Infotype

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

Start/From Date Start date of the fiscal year -

End/To Date End date of the fiscal year -

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

Limit - Subsection limit defined in table V_T7INI7

Implementing Income Tax Declaration for India in Employee Central


Master Data Replication to Employee Central Payroll CONFIDENTIAL 25
Corresponding Employee
Infotype Field Central Field Notes

Tax Exemption - Tax exemption percentage for subsection divisions defined in table
V_T7INI9

Proposed Contribution Amount (in Income Tax -


Declarations)

Actual Contribution Amount (in the Income Tax -


Declarations Actuals portlet)

6.3 Replication to Section 80 C Deductions (0586) Infotype

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

Start/From Date Start date of the fiscal year -

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26 CONFIDENTIAL Master Data Replication to Employee Central Payroll
Corresponding Employee
Infotype Field Central Field Notes

End/To Date End date of the fiscal year -

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

Limit - Investment limit defined in table V_T7INI4

Proposed Investment Amount (in the Income Tax -


Declarations portlet)

Actual Investment Amount (in the Income Tax -


Declarations Actuals portlet)

6.4 Replication to Previous Employment Tax Details (0580)


Infotype

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.

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Master Data Replication to Employee Central Payroll CONFIDENTIAL 27
The Previous Employment Tax Details (0580) infotype corresponds to the declaration type Previous Employment
Tax Details in the Income Tax Declarations portlet in Employee Central. The amount that has been entered for each

Implementing Income Tax Declaration for India in Employee Central


28 CONFIDENTIAL Master Data Replication to Employee Central Payroll
investment type under the declaration type Previous Employment Tax Details in Employee Central is replicated to
infotype 0580.

Infotype Field Corresponding Field in Employee Central Notes

Start/From Date The hiring date or the start date of the fiscal year, -
whichever is the latest

End/To Date End date of the fiscal year -

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.

6.5 Replication to Housing (HRA/CLA/COA) (0581) Infotype


The Housing (HRA/CLA/COA) (0581) infotype stores information on employee housing:

● 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).

Implementing Income Tax Declaration for India in Employee Central


Master Data Replication to Employee Central Payroll CONFIDENTIAL 29
The Housing (HRA/CLA/COA) (0581) infotype corresponds to the declaration type Housing (HRA/CLA/COA) in the
Income Tax Declarations portlet in Employee Central. The amount that has been entered for each investment type
under declaration type Housing (HRA/CLA/COA) in Employee Central is replicated to infotype 0581.

Infotype Field Corresponding Field in Employee Central Notes

Start/From Date The current date (by default) or the date en­ -
tered by the employee.

End/To Date The delimited date -

● Rented Accommodation Type Investment types ● Regarding the Helper/Furniture


○ Metro Details, the validity period entered in
● Rented Accommodation Type - Metro
○ Non Metro Employee Central must fall within
● Rented Accommodation Type - Non-
the validity period of the housing de­
● Company Owned metro
tails declared by the employee.
○ Metro ● Company Owned - City Population > 4
● The HRA (House Rent Allowance) in­
○ Non Metro lakhs
vestment type cannot have both ac­
● Company Leased ● Company Owned - Other Cities tual and proposal records with differ-
● Number of Helpers ● Company leased ent validity periods in Employee Cen­
● Help Cost ● Number of Helpers tral. Otherwise, replication will not
● Total Furniture Value ● Help Cost work properly.
● Furniture Hiring Charges ● Total Furniture Value ● Accommodation types (or invest­
● Furniture Hiring Charges ment types) other than listed are not
supported for replication.

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30 CONFIDENTIAL Master Data Replication to Employee Central Payroll
Infotype Field Corresponding Field in Employee Central Notes

HRA to Be Tax Exempt - This checkbox is always selected in the


code as part of the replication.

Landlord's Details - Fields under Landlord's Details are not


part of the replication.

Landlord’s details (Pan Card, addresses,


and declaration provided by landlord)
have to be captured from the attachment
uploaded by the employees in Employee
Central when they submit the actuals of
investment tax declaration.

6.6 Replication to Income from Other Sources (0584)


Infotype

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


● Income from Other Sources

6.6.1 Income from House Property (IT0584, subtype 0001)

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.

Implementing Income Tax Declaration for India in Employee Central


Master Data Replication to Employee Central Payroll CONFIDENTIAL 31
Corresponding Field in Employee
Infotype Field Central Notes

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

Implementing Income Tax Declaration for India in Employee Central


32 CONFIDENTIAL Master Data Replication to Employee Central Payroll
Corresponding Field in Employee
Infotype Field Central Notes

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.

Company Housing Loan Details - Not part of the replication

6.6.2 Income from Other Sources (IT0584, subtype 0002)

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.

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Master Data Replication to Employee Central Payroll CONFIDENTIAL 33
Infotype Field Corresponding Field in Employee Central Notes

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

End/To Date End date of the fiscal year -

Income from Other Sources Investment Type -

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34 CONFIDENTIAL Master Data Replication to Employee Central Payroll
7 Configuring ODATA API Settings

7.1 Your Task

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

To enable the OData API do the following:

1. Go to Provisioning Company Settings .


2. Under Web Services, select both OData API and Employee Central OData API.

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Configuring ODATA API Settings CONFIDENTIAL 35
3. Give the user Admin Access to OData API. You do this in the application in Adminstrative Tools. Open an RPB
role definition, and then add the permission to the RBP role which you have granted to the relevant API user.

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.

7.4 Authenticating ODATA API

Context

To authenticate OData API, do the following:

Procedure

1. Use the HTTP basic authentication style with the format username@companyId:password.

Example

Company ID: EC1308EC3

Username: admin

Password: pwdString

Format: admin@EC1308EC3:pwd

Implementing Income Tax Declaration for India in Employee Central


36 CONFIDENTIAL Configuring ODATA API Settings
2. Encode it with Base64, using the following tool:
http://www.motobit.com/util/base64-decoder-encoder.asp

You will get a string like the following example: YWRtaW5ARUMxMzA4RUMzOnB3ZA==


3. Enter the string into your http header with the following format:
Authorization : Basic YWRtaW5ARUMxMzA4RUMzOnB3ZA==

7.5 Accessing the ODATA Metadata

Context

To access the OData metadata, do the following:

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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Configuring ODATA API Settings CONFIDENTIAL 37
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Implementing Income Tax Declaration for India in Employee Central


38 CONFIDENTIAL Important Disclaimers and Legal Information
Implementing Income Tax Declaration for India in Employee Central
Important Disclaimers and Legal Information CONFIDENTIAL 39
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