Definition

This 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.

Use

Create a Previous Employment Tax Details infotype (0580) record for:

• An employee, whenever a new employee joins your organization

• All employees who have joined your organization in the past from some other employment, when you are going live with the SAP system

The information stored in this infotype is used for the computation of:

• Tax in the current financial year

• Tax exemption when the employee separates from the your organization

Structure

You can store the following information in the Previous Employment Tax Details infotype (0580):

1. Salary as per provisions under section 17(1), which is the gross salary of the employee for the current financial year from previous employment.

2. Value of perquisites under section 17(2), which is the perquisites of the employee from previous employment in the current financial year.

3. Profits in lieu of salary under section 17(3), which is, in monetary terms, the non-monetary benefit that the employee has enjoyed with the previous employment in the current financial year.

4. Exemptions under section 10 that the employee has claimed with the previous employment in the current financial year. This comprises of exemptions on house rent allowance, leave travel allowance, child education allowance and any special allowances,

5. Professional tax paid by the employee with the previous employment in the current financial year.

6. Total Provident Fund contribution made by the employee with the previous employment in the current financial year.

7. Total Income Tax paid by the employee with the previous employers in the current financial year.

8. Medical exemption claimed by the employee with the previous employment in the current financial year.

9. The sum of all leave encashment exemptions availed with all previous employments so far, and not just the immediately preceding employment.

10. The total gratuity availed with all previous employments so far, and not just the immediately preceding employment.

11. The Voluntary Retirement Scheme (VRS) exemption amount availed, if any, with any of the previous employments so far.

12. The number of times the employee has claimed Leave Travel Allowance (LTA) exemption with his previous employments for the current block of four years.

13. Whether an LTA Exemption has been carried forward for the employee from the previous block of four years pertaining to his or her previous employments.

14. The education cess deducted in the current financial year at previous place of employment.

15. The surcharge deducted in the current financial year at previous place of employment.

If the employee is hired on the 1 ^st of April, the system will allow you to enter only points 9 – 13 when you create the infotype record for the employee.

If the employee has been hired on a day other than the 1 ^st of April, the system will allow you to enter all of the above 13 points when you create the infotype record for the employee.