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Housing Perk

Former Member
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What is housing perk.

Accepted Solutions (1)

Accepted Solutions (1)

sikindar_a
Active Contributor
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Perquisites (CLA, COA and Perkable Hotel Accommodation)

¡ The Housing(HRA / CLA / COA) Details payroll function (INHRA) computes housing perquisite as:

Perquisite basis =

Perquisite basis (YTD)+ /115 + (/115 * projection)

And

(/134 - /133) * No. of Months (CLA/COA) Divided by Total No. of Months

Where,

§ /115 is the COA/CLA Basis wage type, generated by the rule INCLA (/115 = /124 - /132). It stores the basis for COA, CLA, and Perkable Hotel Accommodation.

§ /134 is the Annual Non-perk amounts wage type

§ /133 is the Annual Exemptions wage type

¡ The Housing(HRA / CLA / COA) Details payroll function (INHRA) also checks the table view Percentage/amount for housing related constant (V_T7INR3) for the percentage of perquisite applicable on perquisite basis.

There may be a difference between the eligibility of the employee towards CLA/COA and the actual rental costs. The Housing(HRA / CLA / COA) Details payroll function (INHRA) will process this difference in amount as per the configurations in the COA/CLA Delta Treatment constant (CADTR).

For more information, see Payroll India ® Housing ® Maintain the processing options for CLA

¡ After computing the perquisite, the Housing(HRA / CLA / COA) Details payroll function (INHRA) generates the Perk value:housing wage type (/3RB).

3. If the employee received a domestic help benefit, the Housing(HRA / CLA / COA) Details payroll function (INHRA) will add a perquisite value to the gross salary. It generates the Perk value:helpers wage type (/3RC), for storing perquisite on helpers.

4. If the company has provided furniture to the employee, the system will compute a perquisite on the same. The Housing(HRA / CLA / COA) Details payroll function (INHRA) generates the Perk value:furniture wage type (/3RD) for storing the perquisite on furniture.

For all percentages or values applicable during an exemption or a perquisite calculation, the Housing(HRA / CLA / COA) Details payroll function (INHRA) reads the table view Percentage/amount for housing related constant (V_T7INR3).

Result

The Income Tax functionality reads the exemptions and perquisite wage types generated by the Housing(HRA / CLA / COA) Details payroll function (INHRA) for further processing.

Regards,

Former Member
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Thanks Sikindar

Answers (1)

Answers (1)

sikindar_a
Active Contributor
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Taken from F1 Help

Exemptions and Perquisites on Housing

Purpose

This process describes the calculations performed by the SAP R/3 System, to compute the exemptions and perquisites on employee housing.

Prerequisites

u2022 Exemptions

In the Housing(HRA / CLA / COA) infotype (0581), you have selected the:

¡ Accommodation Type as Rented Accomodation

¡ The indicator for HRA to be tax exempt.

u2022 Perquisites

In the Housing(HRA / CLA / COA) infotype (0581), the employee has one of the following as the Accommodation Type:

¡ Company Leased (OLD)

¡ Company Owned (OLD)

¡ Company Leased

¡ Company Owned

¡ Perkable Hotel Accomodation

According to the IncomeTax act, the Accommodation Types - Company Leased (OLD) and Company Owned (OLD), are only valid for the period before 30th September 2001. You must therefore, use these Accommodation Types only if you are processing payroll for the period before 30th September 2001.

Process Flow

...

...

1. The Housing (HRA / CLA / COA ) India payroll function (P0581), checks the housing records of the employee in the Housing(HRA / CLA / COA) infotype (0581). It stores the data in the internal table HRA.

2. The Housing(HRA / CLA / COA) Details payroll function (INHRA) reads the internal table HRA to compute the exemptions and perquisites on employee housing. The computations are mainly based on:

¡ Accommodation Type u2013 Determines whether the system must compute an exemption or a perquisite

¡ City Category u2013 Determines the percentage of exemption or perquisite that is applicable on an Accommodation Type. For example, the percentage of exemption in case of a Metro is 50 percent, and for a Non-Metro, it is ten percent.

Exemptions

The Housing(HRA / CLA / COA) Details payroll function (INHRA) takes the minimum of a, b and c, as the exemption amount:

a. The HRA basis wage type (/114)

b. Actual Rent Paid

c. Rent Paid minus ten percent of the HRA basis

Edited by: Sikindar on Jun 15, 2009 3:46 PM