Tds on rent

This query is : Resolved

rohit (Querist)
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19 January 2013 Hi,
My Hra calaulation is as below

1 Actual HRA (as per basic) = 78000
2 50% of Basic(Delhi) = 78000
3 Rent>10% of Basic = 92400
Least of the above is exempted = 78000

How much amount of rent receipt i need to Give to my employer?

CA Prashant Gupta

CA Prashant Gupta (Expert)
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19 January 2013 tell us about salary
what is DA

I assue there is no DA
so rent recipt must be min 93600 so that it is more than 78000 than 10% of basic

rohit

rohit (Querist)
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19 January 2013 How This is 93600?

I think if 78000 the least one is exempted than the rent receipt may be 6500/- per month or 78000 for annual.

anurag

anurag (Expert)
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19 January 2013 Its 9000 per month for sure.

rohit

rohit (Querist)
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19 January 2013 But How?

Can u Explain?

anurag

anurag (Expert)
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19 January 2013 First do the calculations with rent 6500 p.m. and than 9000 p.m., you will get the reply, if not than i will explain.
Thanks and regards.

rohit

rohit (Querist)
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19 January 2013 Thanks For Answering

I had done the calculation and got

6500*12=78000(Which is least & Exempted in above case)
9000*12=108000 (cant understand this)

Can u explain this?

anurag

anurag (Expert)
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19 January 2013 Step 1-- Data extraction from your query
Actual HRA received pm. = 78000/12 = 6500 pm.
Your basic salary yearly = 78000/50% = 156000
Your basic salary pm. = 156000/12 = 13000 pm.
10% of basic salary = 13000 X 10% = 1300 pm.
Step 2-- Calcultion of actual rent payment required to exempt hra of 6500 pm
taking actual rent as 6500 pm than
least of
1. Actual HRA = 6500 pm
2. 50% of basic = 6500 pm
3. rent paid less 10% of basic= (6500-1300)= 5200 pm.
hence if u pay rent of 6500pm than only 5200 will be eXempt.
Now try paying 7800 pm as rent
least of
1. Actual HRA = 6500 pm
2. 50% of basic = 6500 pm
3. rent paid less 10% of basic= (7800-1300)= 6500 pm.
So if u pay 7800 pm or more than 6500 pm is exempt.
9000 was provided so that u can meditate for the correct answer!
Thanks and regards.