Hi All,
SAP Releases Snote for Union Budget Changes for Year 2014.
Budget Changes 2014, HINCALC0, PC00_M40_CALC, PC00_M40_CALC_SIMU, T7INT1, T7INT3, T7INI4, V_T7INI7, V_T511P, Tax Slabs, Surcharge, Section 80C, Contribution to Public Provident Fund
Reason and Prerequisites
Union Budget Changes 2014
Solution
This Note covers the following changes as per Budget 2014 Proposal. These changes are effective from April 1, 2014.
Important:
The Finance bill has not received the President's assent at the time that this note is being released. Therefore customers are requested to confirm the same with their legal counsels before applying these changes in their system.
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Below are the changes post budget:
1. Income Tax Slabs
- Individual Men & women below 60 years – NIL(Zero) tax for Income up to Rs 2,50,000/-
- Individuals aged greater than 60 and below 80 - NIL(Zero) tax for Income up to Rs 3,00,000/-
- Individuals aged greater than 80 - NIL(Zero) tax for Income up to Rs 5,00,000/-
- All other slabs remains same
2.Section 80 Limit
- Investment Limit under Section 80C raised from 1 lakh to 1.5 lakh
3.Loan Interest Limit
- Deduction limit of interest on loan in respect of self-occupied house property raised from 1.5 lakh to 2 lakh
4. Employee NPS [80CCD(1)]
- Deduction under Section 80CCD(1) ( Employee NPS Contribution) shall not exceed 1 lakh. Please refer the note 2044885 for changes related to NPS, as this is applicable only for those who are using the SAP delivered standard solution for NPS(Note - 1942663).
5. PPF Limit
- The limit for Public Provident Fund investment has been increased from 1 Lakh to 1.5 Lakh
6. Long Term Capital Gain Tax Rate
Rate of tax on Long term capital gains increased from 10% - 20% on transfer of units of mutual funds, other than equity oriented funds.
There is already a provision in Infotype 584 to capture Normal Rate with 20% slab rate. For 10% tax one can use special rate field. Hence there are no changes made in the system.
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This Note contains both source code and non-source code changes.
Apply the relevant HRSP's to acquire the Corrections.
Alternatively, perform the following steps to implement the changes:
Step 1: Maintain the customizing entries as mentioned in the attached document(Manual_steps_for_Budget_changes.pdf).
Step 2: Apply the attached Correction Instructions through 'SNOTE' transaction. Note that you need to be on one of the latest support packages to be able to apply these Correction Instructions in SNOTE.
Regards
Ratan