Employee of Non-Metro City HRA getting exemption as per Metro-City

[former_member223824]

Hi Experts,

i have an complex issue where the client wants to capture the requirement of some employee hwo are working in Non-Metro cities but they are getting HRA-exemptions on Metro-Cities.

The employees are based out of Gurgaon but getting the exemption on Newdelhi.

Can anybody plese guide me on this as these requirements details with Statutory regulations.

Please guide.

[Former Member]

Hi,

You can provide the metro or non metro benefits to employee based on Selection of Metro or Non metro tick in infotype 581.

Now this is client decision , what they want to do with their employee statutory things and how they handle the legal compliance.

You just suggest , how system calculate the things.

Legally what client is asking is not correct.

Regards,

Mahesh $

[former_member223824]

Hi Mahesh,

Thanks for your assistance....I am worried about the Legal compliance.

I believ the requirement can be met marking the Metro-nonMetro in IT581.

But these exceptions are statutory legal requirments.

I tried convincing the client but there are some employess for who they are practicing like this.

I am not very sure about what legal issues can come in this kind of settin g when we go for year end activities.

Please guide.
.

[Former Member]

Hi ,

Please ask client to take advice form their legal department on the same.

System point of view there is no problelm.

If client submit the form 24q based on this information , then it is upto our India government system , as how they track this and if goverment able track this by any way, then they will send a notice to Company or to individual employees.

You just communicate this things to client officially.

Regards,

Mahesh $

[leelamohan_kavali]

Dear,

1. HRA exemption program is developed in SAP based on India legal rules.

2. If who will be HRA exempted under 40%(Non-Metro) or 50%(Metro) you will have to maintain Metro or non metro in info type 0581.

3. HRA exemption will be effected in Income tax calculation.

4. HRA Exemption amount will be reflected in Form 16.

5. If 50% HRA exemption will be deducted even if client will maintain non-metro in info type 0581 I hope so SAP standard system won't support because entire program has to be changed & Form 16 also has to be customized.

Instead of this clearly explain to client this is not possible through SAP standard & ask them to raise this issue with SAP support team.

Ur's Mohan