Former Member
Dec 25, 2012 at 11:11 AM

HRA Exemption calculation is wrong

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Dear Sir,

We are observed that system are not calculating housing exemption amount in normal run and if

payroll run with retro system are calculating exemption against HRA correct.

while seeing in the INHRA function in the log am finding the wrong calculation i.e. system are

not considering the HRA paid amount of YTD hence system are calculating only for current month and

projected month and through exemption accordingly.

For ex:-

Basis Salary Rs 96000/-PM

HRA 50 % 48000/-PM

Rent paid 30000/- PM

System showing

Non Metro HRA Elig

Elig (Annual) = Elig(YTD) + Elig (Curr Mon) + Proj Months * Latest Value

192000 = 0+48000+144000

10 % of Basic salary 384000 ( four month only as YTD is not showing ) 38400-Rent paid 360000 = 321600

40 % of Basic salary 384000 = 153600

So system are considering HRA exemptiion Rs 153600 ( Min of above three ) instead of are as under

1- Elig (Annual) = Elig(YTD) + Elig (Curr Mon) + Proj Months * Latest Value

576000 = 384000+48000+144000

2- 10 % of Basic Salary for 12 month = 96000*12 = 1152000 = 10 % 115200-Rent paid 360000= 244800

40 % of Basic Salarty = 1152000*40 % = 460800

So to be considered Rs 244800

So pl suggest the same

Regards

Vijay