There can be two reasons where you will get incorrect HRA value:
- When HRA is updated manually in the application.
- When you update the monthly rent details without updating the HRA percentage.
To recalculate and rectify the HRA calculations, perform the following actions:
- Navigate to Payroll > Payroll Inputs > Salary. The Salary page opens.
- Under the Employee Type dropdown list, select the required employee status.
- From the Search by Emp No/Name search box, select the employee for whom you want to recalculate HRA.
- Under Component group, click NET PAY > TOTAL DEDUCTIONS.
- Under TOTAL DEDUCTIONS, click the Edit icon available next to the INCOME option. The INCOME TAX page opens.
- Select the Exemptions tab. The Exemptions window opens.
- Click Monthly Rent, House Rent pop-up appears.
- Fill in the required information and click Save.
- Click Close to close the pop-up.
- Under the Exemptions tab, click Save to update the correct HRA.
Related Links:
- Documentation Page - To learn more about HRA calculation, click here.
- Product Update - To read our product update, click here.
- Video - To watch videos on how to use greytHR, click here.