To capture the exemption amounts under section 10 for Income Tax Calculations purpose, relevant components mapping has to be done under,
Go to Transactions >> click on IT Mapping
Map the Pay Component from the drop-down list
Validate Declaration: Enable this to validate the declared amount, against the standard amount defined.
For Example: If an employee has declared more than 1,250 per month as Medical Allowance, for income tax only 1,250 will be considered and remaining amount will get rejected.
Click on Show to Employee check box to get displayed in Employee Self Service, so that employees can declare the same and Save