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HRA Exemption incorrect

Former Member
0 Kudos

Hi friends,

An employee paid a rent of 18500 (Metro) from 01.04.2008.

However, his city category was changed to Non metro and rent to 35000 from 01.05.2008.

Basic is 63000

Hence the system should calculate his exemption amount as per Metro from 01.04.2008 to 30.04.2008 and Non Metro from 01.05.2009 onwards.

But the HRA exemption is wrong since the system calculates HRA exemption (Metro) for 9 months and the remaining as per Non Metro.

Can you please help me with the same.

Ally

Accepted Solutions (0)

Answers (2)

Answers (2)

former_member75029
Contributor
0 Kudos

To force retro give the date on the payroll driver selection screen for field "Force retro accounting as of".

Afrasyab

sikindar_a
Active Contributor
0 Kudos

Check whetehr u have maintained two records

for APRIL and MAY

Former Member
0 Kudos

Hi Sikindar,

2 records hve been maintained in IT 581

Former Member
0 Kudos

Hi Sikindar,

I just checked IT 581, the user maintained the new record i.e. Non metro w.r.f 22.01.2009 and did'nt run rectro. Hence the system calculated Non metro for only 3 months.

Is it possible to run force retro w.r.f 01.05.2008 in June 09 so that the correct HRA exemption is calculated?

Any other suggestion?

Former Member
0 Kudos

Any updates people?

sikindar_a
Active Contributor
0 Kudos

First Test in in Simulation so that we can come to one point

Make a Test run first

Former Member
0 Kudos

I have run forced retro as of 01.04.2008 in period June 09 and wage types /130 (Exemptions under s/c

10) and /4E4 (HRA annual exemption) are correctly generated.

However, the HRA exemption in Form16 is still incorrect .

How do I get the correct HRA exemption in form 16?

Former Member
0 Kudos

Any updates ?????