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HRA Exemption in Employee Income Tax

Hello,

How to give HRA exemption in Employee tax exemption declaration for employee.

Step 1: make the salary structure and include HRA as a component within it. Make sure to give the amount or forumula for the same. Assign the structure to an employee

Step 2: When an employee fills the tax declaration form, the HRA component will be pulled automatically based on the salary structure available for the employee at that point.

The system will calculate the annual exemption (monthly HRA * 12) and calculate the entire exemption amount based on other entries made for the employee.

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Thanks for your reply can you please share steps for filling tax declaration form.

Kindly check this:

https://docs.erpnext.com/docs/user/manual/en/human-resources/employee-tax-exemption-declaration

You also need to setup the exemption categories and set maximum exemption amount like 1,50,000 for 80C. Steps to setup the exemption categories are within the document.

Hello,

this link is quite help it would be great if if i will get steps to configure HRA in company master.

First, configure the HRA component:

https://docs.erpnext.com/docs/user/manual/en/human-resources/salary-component

For a general overview of setting up payroll:

https://erpnext.com/blog/erpnext-features/payroll-for-india-guide

https://docs.erpnext.com/docs/user/manual/en/human-resources/payroll-setup

I can’t find HRA settings in company profile in v13, the whole sections seems missing.