27 December 2007
hi harshu (hope you wont mind)there is no such proposal of change in HRA and the current provision runs as The least of the following is exempt from tax:
An amount equal to 50% of salary*, where residential house is situated at Bombay, Calcutta, Delhi or Madras and an amount equal to 40% of salary* where residential house is situated at any other place; or
House rent allowance received by the employee in respect of the period during which rental accommodation is occupied by the employee during the previous year; or
The excess of rent paid over 10% of salary*.
*Salary for the purpose computing exemptions of Gratuity, HRA and Leave Encashment = Basic + Dearness allowance (forming part of retirement benefits) Commission based on the % of turnover (paid in course of employment) ( Salaried employees drawing HRA up to Rs. 3000 p.m are exempted from production of rent receipt for the Purpose of TDS only) hope this will resolve your query ENJOY BUDDY TK CARE AND BYE
CAclubindia
