Admin is unable to calculate employee’s TDS accurately. The HRA exemption on the Income Tax page is showing 0% of Basic. How can admin fix this issue?

Created by Product Content Team, Modified on Tue, 27 Feb at 3:34 PM by Product Content Team

House Rent Allowance (HRA) is a component of an individual’s salary allocated by the employer to cover expenses related to rental accommodation. An individual is eligible to claim an HRA exemption solely if living in a rented property.

As an admin, you can fix the issue of HRA exemption showing 0% of Basic by updating the Basic Dearness Allowance percentage on the Lookup Tables page for the new locations.

To update the Basic Dearness Allowance percentage, the admin must perform the following actions:

From the greytHR Admin portal, navigate to the Settings icon > System Settings > Payroll > Lookup Tables. The Lookup Tables page opens.
Select the Basic DA Percentage category card and click the Edit icon. The card opens.
From the Row Category dropdown list, select the required location.
In the table, under the Value column enter the Basic DA Percentage for the selected location.
Click Save. A success message appears.

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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.