HRA Calculation

Exemption Can be avail whichever is lower

1. Hra Received = 29,981/-

2. 50% of salary = 29,981/- (50% in case of Delhi., Mumbai, Calcutta, Chennai , in other City 40% of salary)

3. Rent paid - 10% of salary = 12,003.8/-

Exemptiopn Can be Given Rs. 12,003.8/-

leat of following is exempted u/s 10 (13a) read with rule 2a

actual hra=29981

rent paid- 10% of salary= 18000-5996,2= 12003.8

40% of salary=59962*40%=23084.8

hence exempted amt.= 12003.8

leat of following is exempted u/s 10 (13a) read with rule 2a

actual hra=29981

rent paid- 10% of salary= 18000-5996,2= 12003.8

 50% of salary=59962*40%=29981

hence exempted amt.= 12003.8

HOE YOU CALCULATED 10% OF SALARY?

salary for the purpose of hra= basic salary+ d.a (which enters)

OK. FUTURE C.A. IS RIGHT.

HRA EXEMPTION CALCULATION U/S 10(13A) IS AS FOLLOWS. LEAST OF THE FOLLOWING IS EXEMPTED FROM HRA. 1.HRA ACTUALL RECEIVED. 2.RENT PAID-10% OF SALARY. 3.50% OF SALARY IN CASE OF HOUSE SITUATED IN BCDM(BOMBAY,CULCUTTA,DELHI,MADRAS) OR 40% OF SALARY IN CASE OF A HOUSE SITUATED IN OTHER PLACE. SALARY FOR THIS PURPOSE= BASIC+D.A.(IF TERMS OF EMPLOYMENT SO PROVIDE)+% OF COMMISSION. SO,MINIMUM OF THE FOLLOWING WILL BE EXEMPTED. 1.HRA ACTUALY RECEIVED_29981 2.RENT PAID-10%OF SALARY(18000-5996)_12004 3.40% OF SALARY(40%*59962)_23985 SALARY=59962 AS D.A. AND % OF COMMISSION IS NIL. SO 12004 WILL BE GIVEN AS EXEMTION. THANK U...:-)%OF SALARY(18000-5996)_12004 3.40% OF SALARY(40%*59962)_23985 SALARY=59962 AS D.A. AND % OF COMMISSION IS NIL. SO 12004 WILL BE GIVEN AS EXEMTION. THANK U...:-)

Originally posted by : future ca
	leat of following is exempted u/s 10 (13a) read with rule 2a actual hra=29981 rent paid- 10% of salary= 18000-5996,2= 12003.8  50% of salary=59962*40%=29981 hence exempted amt.= 12003.8

Agree :)

SORRY 3RD WILL BE 50% OF 59962 that is 29981 but still answer will be the same.

Originally posted by : Rajdeepsinh
	SORRY 3RD WILL BE 50% OF 59962 that is 29981 but still answer will be the same.

i have given corrected answer secondly. thanks for noticing

Originally posted by : future ca
	leat of following is exempted u/s 10 (13a) read with rule 2a actual hra=29981 rent paid- 10% of salary= 18000-5996,2= 12003.8 40% of salary=59962*40%=23084.8 hence exempted amt.= 12003.8

exempted amt.= 12003.8

Yes Exemption Amount is Rs. 12004

HRA calculation will be as follows:-

HRA recieved                                                                                                                                       29981

minimum of three is exempt ..........

1)actual HRA: recieved :-                                                                                                 29981

2)50% of salary :- 59962 *50%                                                                                      29981

3)rent paid - 10% of salary :- 18000  - 10% of 59962                                                12003.8

exemption -                                                                                                                                         12003.8

                                                                             HRA-                                                                          17977.2