Hi all,
The standard employee tax claim in ERPNext deducts the claim amount from income of the employee thereby reducing the taxable income.
However, in some cases , the advance tax amount paid by the employee (e.g. on purchase of a vehicle ) can be used to reduce their tax liability for the year against the salary.
e.g. say 10,000 is advance tax paid an employee and his total tax liability based on gross salary of 2,000,000 per annum is 100,000. then at the time the employee claims this advance tax payment, the tax deductible against the employee gross salary should be reduced to 90,000. But in case of ERPnext if this amount is claimed using employee tax claim then this 10,000 is deducted from taxable salary reducing it to 1,990,000.
Is there any way to reduce the employee tax for the year by this amount instead of taxable salary?