Skip to Content

HRA Annual tax exemption in ECC 6.0

Hi Experts,

This issue is regarding HRA annual tax exemption.

I have created HRA WTs 30% of basic, 25% of basic, 20% of basic and fixed HRA. (Total 4 wage types for HRA)

Whenever I am maintaining IT581 with accommodation type = Rented Accom, City Category = metro and given amount to be exempted (selected HRA to be tax exempt). Automatically IT0008 is opening after saving the IT581 with the wage type of 30% HRA. I have saved the IT0008 and processed the payroll. The HRA Annual tax exemption is showing in the pay slip.

My concern is why IT0008 is opening automatically and taking only 30% HRA wage type for all the employees.

If I will maintain other than 30% HRA wage type in IT0008 with some amount, the standard wage type /4E4 is not generating in the results. I have checked all the processing classes, commutations and evaluation classes. Everything is same for all the HRA wage types.

My system current status is HRSP48

Please help me

Thanks

Chaithanya Reddy

Add comment
10|10000 characters needed characters exceeded

  • Get RSS Feed

5 Answers

  • avatar image
    Former Member
    Jun 23, 2010 at 03:23 PM

    This is because of dynamic action.....Please check the Dynamic actions in table T588Z.

    and also check the tables V_T7INR1,V_T7INR3,V_T7INR5,V_T7INR7 and V_T7INR9.One of the table might be you have maintained that WT for defaulting in IT8.

    Check the table V_T7INT9,for which WT you have assigned Tax code SHRA.

    Add comment
    10|10000 characters needed characters exceeded

    • Thanks for your reply MK,

      I have checked all the tables, everything is correct and checked T588Z also but i dont know what to do in this table.

      I have assigned SHRA for all the HRA wage types.

      Please help me

      Chaithanya Reddy

  • avatar image
    Former Member
    Jun 24, 2010 at 05:01 AM

    Hi Chaitanya

    first of all you need to check your allowance grouping for RAP mapping. in RAP you have assigned onely one HRA wagetype you should not give all HRA wage types to one allowance group, due to this only exemption is not getting calculated. this is standard behaviours of the system. so you need to assign one HRA wage type to each allowance group then your problem will get resolve, i have done the same and i got resolved.

    Regards

    Suresh

    Add comment
    10|10000 characters needed characters exceeded

    • Thank you very very much Suresh,

      I am suffering with this issue since April, I have checked for one Allow Group, its working fine.

      But the thing is if same allow group employees are staying in defferent locations like Kolkata and Hyderabad, then we have to create 2 wage types and we have to maintain both wage types in RAps. then how system will react. because some employees are eligible to get 20% of HRA and some are 30% of HRA in the same Allow group, please guide me how to do?

      Once again thank you very much Mr. Suresh.

      Anybody can help me please

      Chaithanya Reddy

      Edited by: Mudupu123 on Jun 24, 2010 10:25 AM

  • avatar image
    Former Member
    Jun 24, 2010 at 08:28 AM

    Hi chaitanya

    we have only one way is that u need to create supperate allowance group for that employees also, system will not allow exemption for two wage types of same tax code. so go with another allowance group by delimiting earlier one.

    Regards

    Suresh

    Add comment
    10|10000 characters needed characters exceeded

    • Hi Sikinder,

      Thanks for your help..

      I have assigned defferent tax codes to defferent HRA wage types but still tax exemption is not coming.

      And generated 40 ECS feature also...

      I have raised a issue to SAP India...they are saying that

      1) I need to create one more HRA wage type

      2) need to write one PCR. in that i have to add all existing HRA wage types to the new HRA wage type.

      3) Delete all the HRA wage types from the V_T7INT9 table.

      4) Maintain new HRA wage type in V_T7INT9 table and assign tax code SHRA.

      I tried everything other than PCR...can anybody help me how to add all the HRA wage types to new HRA in the PCR.

      Thanks

      Chaithanya Reddy

  • avatar image
    Former Member
    Jun 30, 2010 at 06:39 AM

    Hi

    What i have suggested is the right one instead of going PCR, If you go with pcr then you need take common wage type for all the allowance goup in IT0008 then for each person will be having one actual HRA wage type and another one is coomon wage type which is showing for earning display puspose its time taking and very difficult to write PCR, if your a expert in PCR then go with oss suggested atleast you need to write 2 to 3 pcrs, try to conviance your client by modifing allowance goruping with delimit concept, i hope they will accept.

    Regards

    Suresh

    Add comment
    10|10000 characters needed characters exceeded

    • Hi Suresh,.

      Thanks for your quick reply...

      If i will delimit the allowance Groups, i have to change the IT0008 for all employees.

      But i have done same configuration in ECC5.0 for HRA, i have maintained all the HRA wage types in V_T7INT9 table.

      assigned same tax code for four HRA wage types, there tax exemption is coming properly.

      if i will create one more allowance group..there also i will face same proble if am not wrong..because we are giving the HRA not based on ESG or Location also..

      Please guide me how tp proceed

      thanks

      Chaithanya

  • avatar image
    Former Member
    Jun 30, 2010 at 07:54 AM

    Hi

    Check out the table v_t7ina9 how many hra tax codes are there if there is more than one then remove the which is not required then it will also works.

    Regards

    Suresh

    Add comment
    10|10000 characters needed characters exceeded