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HRA Annual Exemption -INDIA

Housing

Purpose

This component helps you create and maintain information on the employee accommodation. You can also compute the exemptions and perquisites applicable on a housing benefit.

Integration

·  Income Tax

During the computation of the annual exemptions and perquisites, the Income Tax functionality also includes the exemptions and perquisite wage types of the housing functionality.

· 

  HRA Annual Exemption

   /4E4 HRA Annual Exemption

  /131 Any other Income [House Prop.IT-584]    150,000.00-

Non Metro HRA Basis = Basic * 12 months =1amount 

12 months 10% = 1 amount

12 months amount of 581 -10% basic =2 amount =is Ans

  HRA Formula

/3R2 Non-metro HRA Amount             Missing one month i.e march

/3R4 Non-metro HRA Basis Amt               

  • v Residence in metro – 50% of salary, elsewhere – 40%  [Basic salary 10000 * 40 %of basic =4000]
  • v Actual H.R.A. received                                              [ IT-0008  HRA Amount =5000 ]
  • v Excess of rent paid over 10% of salary.                      [10% basic salary – IT -581 Amount= 1000-3000  =2000]


            Above 3 Rules less amount =/4e4 Amount =2000*12 = /4e4= 24000

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Configuration tables

  • Housing code for taxation (V_T7INR1)

       Percentage/amount for housing related constant (V_T7INR3)

  • Housing related statutory constants for taxation (V_T7INR5)
  • Codes for Housing Types (V_T7INR7)
  • City category for housing type (V_T7INR9)

Back end calculation of INHRA FUNCTION

Go to payroll log- Begin Gross to Net calculation-ELSE-INHRA

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HRA exemption use full links

1-http://help.sap.com/erp2005_ehp_04/helpdata/en/29/22b91a0b184b9ab1015a8cd48f76a5/content.htm

2-http://help.sap.com/saphelp_afs64/helpdata/en/0d/bec6ba2cec4cf69e9ba5b43dbec440/content.htm

Cheers

Satish

Assigned tags

      10 Comments
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      Author's profile photo Former Member
      Former Member

      Useful One...

      Best Regards,

      Naresh K.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks Naresh

      Author's profile photo Former Member
      Former Member

      Hi Satish,

      Thank you very much for your valuable efforts and time.

      Thanks & Kind Regards,

      Raghu.

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks Raghu

      Author's profile photo Former Member
      Former Member

      Hi Satish,

      Could you please share document relating to Company owned accommodation and company leased accommodation.

      Thanks & Kind Regards,

      Raghu.

      Author's profile photo Former Member
      Former Member

      Dear,

      Can i attach here soft copy of COA/CHA/CLA.

      B M Subhedar

      919158881202

      Author's profile photo SINDHUJA CHANDRASEKARAN
      SINDHUJA CHANDRASEKARAN

      Hi Satish,

          

           Such a neat document about HRA. Your way of explanation is very good.

      Regards,

      Sindhuja

      Author's profile photo Former Member
      Former Member
      Blog Post Author

      Thanks a lot Sindhuja, your comments much appreciated .

      Cheers!

      Satish 🙂

      Author's profile photo Former Member
      Former Member

      HI

      Nice doc small doubt : HRA Received is their right is that HRA RECEIVED is 40 % of basic pay ???

        1)HRA Received  from where do we get the amount  is it same as the 3 step in the excel table pls let me know

      Regards

      Giri

      Author's profile photo prathap hcm
      prathap hcm

      Hi,

      It is very nice explanation. Thanks for the sharing.....

      Regards,

      Pratap