HRA exemption

[Former Member]

Hi ,

I entered HRA 40% on basic pay in 0008 IT.Calculation coming correctly .HRA is 16,667.00

than 581IT (Housing(HRA / CLA / COA)) created

Accommodation Type:Rented accom

City Category:Non -metro

Rent Amount 20,000.00 INR ,selected check box HRA to be tax exempt

executed pay roll .

/4E4 HRA Annual Exemption= 186,832.94

how it arrived this amount

How much amount is HRA exemption , How do I check in RT table.

Regards

Nandhini

[Former Member · Accepted solution]

In addition to Ankit,

1. . 50% of basic(in case of Metro), 40% of Basic( In case of Non Metro) - this basic is an annual amount which will be generated by projecting the wage type /114 for the number of months employee will be in HRA.

Other 2 points are ok.

How much amount is HRA exemption , How do I check in RT table - /4E4 is the HRA exemption amount. This amount will be cumulated to the /130 by PCR IN76.

Check these 2 wage types in RT. Also note that /130 is not only HRA, its combination of all exemption u/s 10 amount.

Edited by: Praveen Tiwari on May 18, 2011 5:02 PM

[Former Member]

good explanation !!!

[Former Member]

ans

[Former Member]

ans

[Former Member]

Hi Nandhini,

In the Payroll log go to INHRA Function you can see the below calculation.

1. HRA Eligibility = 40% of basic*12=16667 * 12 = 200004

2. HRA Paid =16667*12= 200004

3. Rent paid - 10% of basic =(20000-10% of basic *)12= 189999

Minimuum of the above 3 conditions will be exempted from tax.

1 more important thing to check is the kind of the projection stored in SLPRJ constant if the value is 0 HRA will actual projection and 1 it would go for Nominal projection.

Regards,

Prabha

[Former Member]

Dear Gurus ,

Please check blow calculation .Total HRA Exemption is coming properly or not ...

Your inputs are more value for me ....

Computation of monthly basis

BEGDA ENDDA ACC BASIS ELIGI RENT DIFF

04072011 04302011 1 33,333.60 13,333.60 16,000.00 0.00

Finding the Rent for HRA/CLA/COA in the Financial year and the no. of days for HRA/CLA/COA in coming months

BEGDA ENDDA ACC RENTFY TOTMONS

04072011 03312012 1 236,000.00 1.10000E+01

Finding the annual basis

Elig (Annual) = Elig(YTD) + Elig (Curr Mon) + Proj Months * Latest Value

Basis (Annual) = Basis(YTD) + Basis (Curr Mon) + Proj Months * Latest Value

Non Metro HRA Elig

196,670.60 = 0.00 + 13,333.60 + 1.10E+01 * 16,667.00

Non Metro HRA Basis

491,670.60 = 0.00 + 33,333.60 + 0.00 + 1.10E+01 * 41,667.00

Find the annual payments and add to the CLA/COA basis to get Total Basis for the year.

Basis = Basis + { /134(CRT) + /134(RT) - /133(RT)} / Total No of Months * CLA/COA Months

Finding HRA Exemption for METRO and NON-METRO

Non-Metro HRA Exemption is 0.00

the minimum of the following three

196,668.24 = 40.00 * 491,670.60 / 100.00

196,670.60

186,832.94 = 236,000.00 - { 10.00 * 491,670.60 / 196,670.60

Finding Perk value for CLA/COA

Total HRA Exemption = 186,832.94

Thanks

Nandhini

[Former Member]

Yes it is working perfectly as per the scenarios.

[Former Member]

Thanks praveen,

Regards

Nandhini

[ankitvasavada]

Hi Nandini

HRA calculation is based on Rules below.

1. 50% of basic(in case of Metro), 40% of Basic( In case of Non Metro)

2. Actual HRA amount

3. Actial rent-10% of basic

which is minimum is concederd for HRA exemption.

Hope I am Clear.

regards

Ankit v