Hra Exemption (It0581) Rent Not Considering Exemption

[Former Member]

Dear All Expert,

I need valuable guidance for SAP HR.

When i am updating new entry for HRA EXEMPTION (IT- 0581) for Rent Rs. 5000, following error showing.

Eligibility amount for HRA/CLA/COA is zero for employee 00840001on 01.04.2010.

I have checked table V_T7INA9 & V_T7INT9 & PAYSCALE GROUPING & RAP also checked but not getting any way for the HRA Exemption.

Please guide for the solution.

Regards,

Shivane Santosh

SAP HR - PAYROLL

No CAPS

[Former Member · Accepted solution]

Hi Shivane,

Please note RAP amount of T7INA9 will be part of eligibility amount only if INVAL module variant is B or C.

RAP Amount:-

The RAP amount field indicates the additional or limit value for a wage type amount for Reimbursements, Allowances and Perks. There is an indirect evaluation module INVAL specific to India with its variants. This field is used only for its variants u2018Bu2019 and u2018Cu2019.

u2022Module variant 'B' indicates that the RAP amount is used as a fixed amount in 
addition to a percentage of base wage type.
u2022Module variant 'C' indicates that the wage type amount is a percentage of base 
wage type and this cannot exceed the RAP amount.

For more details check the F1 help of the table fields.

For module variant A, eligibility amount will come from T510 and for variant 
D it will be dependent on basic slab, basic limit and other parameter of T7INA7
as well.

Check the Indirect valuation of the wage type. I hope it is INVAL A. Set it as per your requirement. Also check if everything is correctly configured for the SHRA tax code.

- Praveen

Edited by: praveen.hcm on Apr 5, 2011 1:24 PM

[Former Member · Accepted solution]

Dear Praveenji,

I have changed in INVAL module variant "B" & the message is not showing while updating IT-0581 but after updating Rent amount is not exempting while payroll simulation in Income Tax.

The scenario is for Daily Wages (Union).

Regards,

Shivane Santosh

[Former Member · Accepted solution]

Hi,

Check the folowing things -

1. View V_T7INR7 should have entry with HRATY 1 and tax code SHRA. (If you have any Z tax code for the HRA then you need to modify this as well).

2. In V_T7INA9, configure the HRA wage type with RAP Indicator as 'allowance' for the allowance grouping.

3. In V_T7INT9 map your wage type to the tax code configured in step 1. Tax type should be set as 'Tax exemption is rule based' and frequency should be blank.

4. While creating the IT 0581 record, select the checkbox 'HRA to be tax-exempted'. Also make sure that you have selected Accomodation type 1 that is 'Rented accomodation'.

5. Now update the infotype IT0008 with wage type configured in step 2, which will be happen by dynamic action triggered by the system.

let me know if it is not working even after all the setting.

Praveen

[Former Member · Accepted solution]

Hi,

As per your giudance i have checked & found point no. 3 V_T7INT9 we have made blank & all points are same.

While payroll run HRA U/S 10 showing only 01 Mth amount exemted & I have already taken the run from 01.04.2010 to 31.03.2011.

in Form-16 it is directly showing the amount of HRA but text HRA Exemtion is not getting displayed.

If any guidance pl. tell.

Regards,

Shivane Santosh

[Former Member · Accepted solution]

Well HRA exemption calculation is based on minimum of three parameter.

But it will always be annual of effective from the date IT0581 & IT0008 are maintained with corresponding records. Just check if these things are correct. In case it's not, provide the INHRA computation log.

I din't get the Form 16 thing.

Praveen

[Former Member · Accepted solution]

Dear Praveenji,

Thanks very much..

As per your instruction, it is working for HRA.

Regards,

Shivane Santosh

[Former Member]

Hi,

kindly check INHRA function and check whether it is taking proper wage type or not and also check HRA wage type valadity period in the configuration leavel

Regards,

Prasath