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HRA Annual Exemption -INDIA



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.


·  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


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



HRA exemption use full links





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