How to set the default HRA to Rs.1 lakh

Steps to Set Default HRA Allowance

1. Go to: Payroll → Settings → Pay Groups.

2. Select your Pay Group and click the Configure Icon under Actions.

   

3. On the new page, click Other Settings → Miscellaneous Settings. Then click the three dots and select Update Settings.

   

4. Scroll down to HRA Declarations. Check the box for 'Consider annual rent paid as INR 1,00,000 for HRA calculation...'. Select how HRA should be considered for tax exemption.

   

5. Click Save.

Now, HRA for employees in this pay group will be marked 'System Calculated' in their tax computations.