house rent allowance

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Adarsh

Adarsh (Querist)
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04 July 2008 is there is chage in House rent allowance???

what is method of cal. it

CA Abhishek Tyagi

CA Abhishek Tyagi (Expert)
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04 July 2008 Hi Adarsh,

There is no change in the provision related to House rent allowance.

The method of calculation for the exempt amount of HRA is as follows :

1. 40 % of the salary (50 % of the salary in case of four metro cities)

2. Actual amount paid over 10 % of salary.

3. Actual amount received from the employer as HRA.

whichever is less will be exempt out of the above mentioned limits.

Salary here means Basic + DA + commission as per terms of employment. (as decided in gestetner duplicators case )

Hope this will resolve your query.