HRA calculations are incorrect in application, how can admin re-calculate and update correct HRA in greytHR?

House rent allowance (HRA) is a component of salary provided by employers to employees to cover their rental expenses.

Most of the time error occur when the HRA is updated manually or HRA percentage is not mentioned after updating monthly rent details.

To recalculate and rectify the HRA calculations, the admin must perform the following actions:

1. From the greytHR Admin portal, navigate to Payroll > Payroll Inputs > Salary. The Salary page opens.
2. From the Employee Type dropdown list, select the required employee status.
3. From the Search by Emp No/Name search box,  enter the employee number/name for whom you want to recalculate HRA. The Component Group table with salary components appears. 
4. Under Component Group, click NET PAY > + TOTAL DEDUCTIONS.
5. Under + TOTAL DEDUCTIONS, click the INCOME TAX Edit icon. The INCOME TAX page opens.
6. Select the Exemptions tab. The page displays the various exemption details.
7. Under HRA Exemption, click Monthly Rent. The House Rent pop-up appears.
8. Fill in the required information and click Save. A success message appears.
9. Click Close to close the pop-up.
10. Under the Exemptions tab, click Save to update the correct HRA. A success message appears.

Click here to subscribe to our help videos

Related Links:

Video - To watch the video on Income Tax, click here.

FAQs - To read more FAQs about Income Tax, click here.

Documentation - To learn more about Income Tax declaration, click here.

Product Update - To read about the product update, click here.