28 July 2016
,My friend working as soft ware in Chennai he is getting 12500/- as hra allowance that means 50% of basic, he is paying 11000/- per month , it is staying metro sir, how much amount can he take exemption or claim in section 10(13a) sir, kindly give me your valuable suggestion sir,
28 July 2016
The least of the following is exempt: 1. 50% of Salary* (Chennai is Metro city) 12500*12*50%= Rs.75,000 2. Excess of Rent paid over 10% of Salary= (11000*12)-(10% of 12,500*12)=Rs.117,000 3. Actual amount of HRA received=12500*12= Rs. 150,000
Thus the amount of HRA exempt is Rs.75,000 Taxable HRA is 150,000-75000 = Rs. 75,000
Note : Salary for this purpose includes Basic + DA
CAclubindia
