Need Help - Payroll Module (HRMS)


When a part of the base salary is chosen as tax saving reimbursement, it does not reduce the taxable base salary by that amount. For example: Given below are the components of the base salary

  1. Basis
  2. HRA
  3. Special Allowance (Balancing figure)

To save on taxes, if employee chooses 30K (out of total base salary of say 200K) per annum as meal reimbursement , special allowance should get reduced by 30K and 200K less 30K should become taxable.

Any thoughts or guidance will be highly appreciated