Major SAP Layout changes & SOP for Option to New tax Regime in HR Module

Major Changes and improvements in SAP Module

Post the SAP upgrade, the following improvements in HR is done:
  1. Changes related to new Income Tax regime is provisioned in CSI. SOP for the same is shared below. 
  2. The designation of the approver in respect of the leave spells that are approved after yesterday’s SAP upgrade is correctly appearing.
  3. PCP0 posting performance issue has been improved. 
  4. Inflated ‘Gross pay’ issues has been fixed.
CEPT HR Team 

Standard Operating Procedure for Option to New Tax Regime in SAP HR Module

As per CBDT`s orders, ‘new tax’ regime has been introduced, wherein every salaried employee has an option to choose new Tax Regime or continue with the old tax rates. SAP has been provided with the facility of choosing the Tax option.
On rollout, by default, the tax option would be in OLD Tax regime for all the employees, which would keep all the employees as in current status without any change of taxation.
When the employee wants to switch to the new tax regime:
  1. The employee will intimate the TAX option to the DDOs, if change in tax option is required.
  2. The change in tax regime can be done individually by the DDO using the T-code PA30 Info Type 0588, sub info type 0008 and save.



3. DDOs may also use the mass upload of the option using the T-Code: ZHR_IT0588_UPD

4. The Upload Format is furnished here under:
Tax Method
**** 
1 - Old Tax Regime
2 - New Tax Regime.
Here, the column of tax method should be in text format, but data to be maintained as "1" or "2" as the option.

Note: The change to new tax regime would be possible from 01.03.2021 or the Date of joining, whichever is later

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