In greytHR application, HRA is calculated based on an employee's updated location.
You might get an incorrect HRA value, in case HRA is updated in the system manually. This error can happen when you update the monthly rent details without updating the HRA percentage.
To rectify the HRA calculations, perform the following actions:
- Navigate to Payroll > Payroll Inputs > Salary.
- On the Salary page, from the search an employee... search box, search for the employee whose HRA calculations you must rectify.
- Expand Net Pay > Total Deductions.
- Under Total Deductions, click the edit icon on the Income Tax option. Income Tax components page opens.
- Under the Exemptions tab, click Monthly Rent. House Rent pop-up appears.
- Fill in the details for the required month.
Kindly note that the HRA percentage for metro cities is 50% and for non-metro cities 40%.
- Click Save. House Rent pop-up closes.
- On the Exemptions tab, click Save.