Introduction
House Rent Allowance (HRA) is one of the most important components in salary structure, especially when it comes to tax savings under the old tax regime. As per the latest updates, the classification of metro cities has expanded from four to eight cities, which directly impacts how HRA exemptions are calculated.
This change makes it essential for organizations to update their system configurations so that employees can declare their HRA accurately based on the revised rules.
uKnowva HRMS simplifies this process by allowing administrators to update metro city configurations and enabling employees to declare HRA seamlessly within the system. This ensures compliance with the latest regulations while maintaining accuracy in tax calculations.
In this article, you will learn how to configure the updated metro cities for HRA and how employees can declare their HRA under the old regime in uKnowva HRMS.
Step 1: Access the Investment Declaration App Configuration
To begin, navigate to the top-right corner of your uKnowva HRMS instance and click on your profile icon.
From the drop-down menu, select the uKnowva Configuration option to open the configuration panel.
From the side menu, click on the App Manager and locate the Investment Declaration App.
Once you select it, a configuration pop-up window will open where you can manage all investment-related settings within the system.
Step 2: Update the Metro City List for HRA Calculation
Inside the configuration panel, scroll through the available settings until you locate the City options for HRA section.
This is where you can update the list of metro cities as per the latest rules.
Previously, only four metro cities were considered, but now you can include eight metro cities such as Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, and Ahmedabad.
These cities qualify for a higher HRA exemption calculation.
Please update the metro cities in the settings section using the following list and click Save button to apply the changes:
Delhi,Mumbai,Kolkata,Chennai,Bangalore,Hyderabad,Pune,Ahmedabad,Others
This ensures that the system uses the updated classification while calculating HRA exemptions.
Step 3: Navigate to Investment Declaration Under My Finance
Once the configuration is updated, go to the side navigation panel and click on the My Finance menu. From there, select the Investment Declarations sub-menu.
This will open the page where employees can declare their tax-saving investments. Switch to the Old Regime option and select the relevant financial year for which you want to declare your HRA.
Step 4: Open HRA Declaration Section and Enter Details
After selecting the financial year, scroll to the particulars section where you will find Sec.10(13A) House Rent Allowance. Click on the pen icon under the action column to open the HRA declaration form.
In this form, select the Place of Accommodation, which refers to the city where you reside.
Based on your selection, the system will determine whether the city falls under the metro category or the non-metro category. If the accommodation is in cities like Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, or Ahmedabad, the system considers 50% of the salary for HRA calculation; otherwise, it considers 40% of the salary, as per the applicable laws.
Step 5: Review Auto-Calculated Fields and Save Declaration
Once you select the city and start entering the required details, the system will automatically calculate and display fields such as Rent Paid minus 10% of salary, 40% or 50% of salary, Earned or Projected HRA, and Allowed HRA Exemption for the selected month and year.
These calculations help ensure accuracy and compliance with tax rules. After reviewing all the details and ensuring correctness, click on the save button to successfully declare your HRA.
Conclusion
That’s it!
You’ve now successfully configured the updated metro cities for HRA and declared your HRA under the old regime in uKnowva HRMS.
By following this process, you ensure that your HRA calculations are aligned with the latest rules, your investment declarations are accurate, and your tax benefits are optimized.
If you have any questions or need additional support, feel free to contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..