Calculation of H.R.A.
This query is : Resolved
19 March 2008
1.How to calculate H.R.A. in Income Tax.
please provide full details.
please provide full details.
19 March 2008
Least of the following will be exempte:
1) HRA Received(for the period for which rented accomodation was occupied by employee).
2) Rent paid-10% of salary (for the relevant period).
3)50% of salary incase of BCDM ,40% in other place.
Salary means:basic+DA(if it enters into retirement benefits)+% wise fixed commission on turnover.
1) HRA Received(for the period for which rented accomodation was occupied by employee).
2) Rent paid-10% of salary (for the relevant period).
3)50% of salary incase of BCDM ,40% in other place.
Salary means:basic+DA(if it enters into retirement benefits)+% wise fixed commission on turnover.
19 March 2008
1.ACTUAL HRA RECEIVED
2.RENT PAID IN EXCESS OF 10% OF SALARY
3.50% OF SALARY IN METRO CITIES OR 40% OF SALARY IN NON METROS.
LEAST OF THE ABOVE THREE IS EXEMPT HRA WHICH YOU CAN DEDUCT FROM YOUR TAXABLE SALARY.FIRST ADD HRA TO YOUR TAXABLE SALARY.THEN DEDUCT THE EXEMPT PORTION OF HRA AS CALCULATED ABOVE.
SALARY UNDER THIS CALCULATION IS BASIC SALARY PLUS DA AND FIXED COMMISSION IF ANY ON TURNOVER.
R.V.RAO
2.RENT PAID IN EXCESS OF 10% OF SALARY
3.50% OF SALARY IN METRO CITIES OR 40% OF SALARY IN NON METROS.
LEAST OF THE ABOVE THREE IS EXEMPT HRA WHICH YOU CAN DEDUCT FROM YOUR TAXABLE SALARY.FIRST ADD HRA TO YOUR TAXABLE SALARY.THEN DEDUCT THE EXEMPT PORTION OF HRA AS CALCULATED ABOVE.
SALARY UNDER THIS CALCULATION IS BASIC SALARY PLUS DA AND FIXED COMMISSION IF ANY ON TURNOVER.
R.V.RAO
20 March 2008
already answered before
20 March 2008
Least of the following will be exempted
1) 50% of 40% basic salary
2) Rent paid - 10% of basic Salary
3) Actual HRA received
It is advisable to format the salary structure as 50 or 40% as HRA of Basic salary to get maximum benefit. 50% is for metro and 40% for non-metro
1) 50% of 40% basic salary
2) Rent paid - 10% of basic Salary
3) Actual HRA received
It is advisable to format the salary structure as 50 or 40% as HRA of Basic salary to get maximum benefit. 50% is for metro and 40% for non-metro
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