on 10-04-2011 10:41 AM
Hi Experts,
I am facing a calculation error in HRA Tax Exemption:
Here is my salary structure:
Basic:18000
HRA:6000
Rent Paid:7000 (updated in IT581 and ticked HRA to be exempted)
city category: non metro
as per the standard formula: (700012)-((1800012)*10%) = 62400 is the tax exemption.
But the following is the result I am getting:
BEGDA ENDDA ACC BASIS ELIGI RENT DIFF
21032011 20042011 1 18,000.00 6,000.00 7,150.54 0.00 ( instead of 7000, rent paid is getting 7150.54)
Finding the Rent for HRA/CLA/COA in the Financial year and the no. of days for HRA/CLA/COA in coming months
BEGDA ENDDA ACC RENTFY TOTMONS
21032011 20032012 1 159,645.16 1.09785E+01
Finding the annual basis
Elig (Annual) = Elig(YTD) + Elig (Curr Mon) + Proj Months * Latest Value
Basis (Annual) = Basis(YTD) + Basis (Curr Mon) + Proj Months * Latest Value
Non Metro HRA Elig
70,484.16 = 0.00 + 6,000.00 + 1.10E+01 * 5,873.68
Non Metro HRA Basis
211,452.60 = 0.00 + 18,000.00 + 0.00 + 1.10E+01 * 17,621.05
Find the annual payments and add to the CLA/COA basis to get Total Basis for the year.
Basis = Basis + { /134(CRT) + /134(RT) - /133(RT)} / Total No of Months * CLA/COA Months
Finding HRA Exemption for METRO and NON-METRO
Non-Metro HRA Exemption is 0.00
the minimum of the following three
84,581.04 = 40.00 * 211,452.60 / 100.00
70,484.16
138,499.90 = 159,645.16 - { 10.00 * 211,452.60 / 70,484.16
Finding Perk value for CLA/COA
Total HRA Exemption = 70,484.16
Thanks,
Rethi
Is there any loss of pay to the employee in the current month ?
In case of loss of pay Income projection & exemption calculation will be based on the reduced amount .
This is a normal SAP behaviour.
(Alternative behaviour based on nominal values i.e. projecting the full amount is also available though not recommended by sap . You can check note number : 941288, 1529052, 1087230)
Regards
Sumit
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