Set Up Tax Reporting Unit for Income Tax

Use a tax reporting unit to group workers for tax and social security calculation and reporting.

Tax Reporting Units (TRUs) are the legal reporting units (LRUs) used in Oracle HCM Cloud for tax reporting purposes. In the Legal Entity Configurator, when you create an LRU that belongs to a PSU, the application automatically creates a TRU in HCM. It associates the TRU with the parent PSU. When you create an LRU that belongs to a Legal Employer (that is not also a PSU), you must select a parent PSU. In this way, TRUs are indirectly associated with a legal employer by association with a PSU.

You can configure all the required information for legal reporting units, referred to as Tax Reporting Units in HCM context, for the Oracle HCM processes.

Set Up Income Tax TRU

Here's how you can provide the HCM information:

1. Set the scope for this task by selecting the parent Legal Entity and then the Legal Reporting Unit, as described in previous tasks.

2. Select Manage Legal Reporting Unit HCM Information in the implementation project task list.

3. On the Manage Legal Reporting Unit HCM Information page, select the income tax TRU from the dropdown list, and click Apply and Go To Task.

4. On the Tax Reporting Unit Details page, select Correct option in the Edit dropdown.

5. For the India Income Tax TRU, click Income Tax and enter the required information.

   1. In the Investment Declaration Window Information section, enter the period within the financial year and the timeline in every month to capture the employee's investment declaration information.

   2. In the Tax Regime Window Information section, specify the timeline to select the tax regime.

   3. In the Proof Submission Window Information section, specify the timeline to submit the tax proofs for the financial year.

   4. In the Income Tax Basic Information section, enter the required information.

      Field	Description
      Ward, Circle, or Range	Indicates the jurisdiction of the income tax assessing officer. This is a number assigned to the assessing officer who would be monitoring your income taxes.
      Employer Classification	Select the employer classification from the dropdown list.
      Employer or Deductor Information or Division	Specify the deductor information information.
      Covered by Gratuity Act	Select the required option, Yes or No if the employer is covered by the Gratuity Act.
      Continuous Period of Service for Gratuity	Select the years of employee service in the organization from the dropdown.
      Accumulation Year Type	Select the LTA Accumulation period, which can be 2 years, 4 years, or no accumulation.

   5. In the Income Tax Form 24Q Information section, specify all the details for the Form 24Q report.

      Field	Description
      Employer Classification for Form 24Q	Indicates the deductor category, which can be central government, state government, or private company.
      PAO Code	Enter the Pay and Account Office (PAO) code, which is needed if the employer classification is central government, and optional for state government.
      DDO Code	Enter the Drawing and Disbursing Office (DDO) Code, required if the employer classification is central government and optional for the state government. You need not specify any value for other deductor types.
      PAO Registration Number	Pay and Account Office (PAO) registration number. This is an optional value for central or state government
      DDO Registration Number	Drawing and Disbursing Office (DDO) registration number. This is an optional value for central or state government
      Ministry Name	Name of the ministry in the central, or state government.
      Other Ministry Name
      Account Office Identification Number	Enter the unique ID of the income tax account office
      GST Number	Indicates the 15 digit Goods and Service Tax(GST) number.
      State	Select the Form 24Q state code.

   6. In the Income Tax Representative, select the Employer Representative and the State from the list.

   7. In the Income Tax Challan Info , enter the details of the income tax challan

      Field	Description
      Financial Year	Enter the financial year as in the income tax challan.
      Quarter of Remittance	Indicates the year quarter for the tax deducted at source (TDS) remittance, which can be Q1 (1st quarter), Q2 (2nd quarter), Q3 (3rd quarter), and Q4 (4th quarter).
      Month	Enter the month of the TDS payment
      Payment Date	Enter the date of bank challan transfer
      Challan Number	Enter the serial number on the bank challan.
      Bank Name	Enter the name of the bank
      BSR Code	Enter the bank branch code
      Income Tax	Enter the TDS amount.
      Surcharge Amount	Enter the tax surcharge value
      TDS Cess	Enter the TDS cess amount.
      Interest Amount	Enter the TDS interest amount.
      Others	Enter the TDS other charges.
      Total Amount	Enter the total tax deposit amount as in the challan (sum of TDS amount, surcharge amount, TDS cess amount, TDS interest and other values).
      Cheque/DD No	Enter the payment cheque or demand draft number.
      Book Entry	Select Yes if the payment is a book entry or No.
      Fee Paid under Section 234E	Enter the amount for section 234E for late filing of TDS.
      Minor Head of Challan	Enter the value as per Annexure 7.
      Nature of Payments	Enter the section code in which the payment is made.
      Comments	Enter any comments for reference to the challan.
      DDO Serial Number	Enter the unique ID of the drawing and disbursing officer.

   8. In the 24Q Receipt Information, enter the details of the 24Q receipt info

      Field	Description
      Financial Year	Enter the financial year of the 24Q receipt.
      Quarter of Remittance	Indicates the year quarter for the tax deducted at source (TDS) remittance, which can be Q1 (1st quarter), Q2 (2nd quarter), Q3 (3rd quarter), and Q4 (4th quarter).
      Return Type	Specify the return type - regular or correction.
      Token Number	Specify the token number of previous regular statement (Form 24Q).
      Status	Indicates the status of the submitted returns for the employer's reference.

   9. Click Submit.

6. Click Submit.