Changes in IT 581 Metro /Non metro

[Former Member]

Hi Folks,

Buy mistake we have maintained IT 581 with non Metro category for certain employee. now in the month of october we want IT 581 to be changed to Metro effective 01.04.2009.

Now we don't want any retro to happen from 1st april, becz it has lot of values have changed from then.

Now in October payroll i would like to add the difference in HRa Tax exemption amount in /4e4 thru a custom PCR, is it a right idea. if so, where do i need to insert the rule.

Experts Plz advice

Regards,

Sekar.

[Former Member]

it is better system run for retro. if not today in future it may run retro, .

If you update it581 with effect from 01.04.2009 then it will go for retro. but you can remove the value from IT0003 field Earliest MD change. you can put the value 01.10.2009 in it0003 field Earl.pers. RA date.

but when you update it 585 and 586 on feb and march for actual contribution for sec 80 then that that time ............?

[Former Member]

HI Balapani,

Thanks for the Information. But tell me one thing if change IT 581 from 01.04.2009 and then change the payroll status to 01.10.2009, will i get HRA Tax exemption as per Metro calculation from 01.04.2009??????????

Regards,

N.Palani

[Former Member]

no. payroll should run from 01.04.2009 then only you will get exemption.

if in a financial year IT581 rent paid is change with effect from 01.04.2009 then in the fiancial year atleast it should run once retro from 01.04.2009 payroll to get HRA exemption.