HRA Type Earning refers to the House Rent Allowance component in an employee’s salary structure. It is a type of earning (i.e., income) provided by employers to employees to help cover rental housing costs.
What is HRA?
HRA is a salary component paid to employees who live in rented accommodation. It is partly or fully exempt from tax under Section 10(13A) of the Income Tax Act, subject to certain conditions.
Step 1 - Navigate to Salary Components
Login to Asanify as an Admin. Click on Salary Components under Payroll tab in left navigation pane.
Step 2 - Navigate to Custom Earnings
Navigate to Custom Earnings tab by clicking on Custom Earnings. Here you will be able to see all the custom components created by you.
Step 3 - Create a New Custom Earning
Click on + New Custom Earning. Enter a Name, Description and select the earning type from the dropdown. Click on Next for any Advanced Settings and then on Create to create a custom earning component of type HRA.
You can now use these HRA-type earning components in employee salary structures. The tax behavior of these components will follow the same exemption rules as standard HRA.