Dear All,
This month in payroll numerous employees got less Ptax deductions. On analysis of the issue, we came to know that less Ptax(/3p1) was generated since Ptax basis(/3p2) was reduced due to generation of Ptax basis arrears (/zp2). There were changes in basic, HRA, washing allowances of many employees, but this has happened only with some of them - not all.
Can anyone give a clear explanation of how Ptax basis and Ptax basis arrears are calculated and also how retro-accounting processing happens?
I would appreciate every help.
Regards
Ankit