HRA
This query is : Resolved
a.k. pandey
(Querist)
17 September 2009
My salary is 35000/- How to calcuted the HRA
CA Vanesh Nadar
(Expert)
17 September 2009
Please providde full details
please refer to the section 10(13A) of the Income-tax Act, 1961.
I am sure you will be able to get the full information about it.
please refer to the section 10(13A) of the Income-tax Act, 1961.
I am sure you will be able to get the full information about it.
Manmohan ACA, CS
(Expert)
18 September 2009
HRA
Tax Treatment: Minimum of the following is exempted from tax:
1. Actual HRA received.
2. 50% of salary (when house is situated in a metro city) or 40% of salary (when house is situated in any other place)
3. The excess of rent paid over 10% of salary.
NOTE . Salary here means: Basic + D.A. (if it forms a part of retirement benefit) + Commission as a fixed % on turnover.
a) Salary shall be determined on due basis for the period for which the employee occupies rented accommodation in the previous year and gets HRA.
b) Exemption is not available if employee lives in his own house, or in a house for which he does not pay any rent.
c) For criteria of 50% or 40% of salary as deduction, place of employment is not significant but place where the house is situated is important.
d) Deduction from HRA depends on Salary of the employee, Amount of HRA, place of residence (not place of employment), rent paid by the employee.
Tax Treatment: Minimum of the following is exempted from tax:
1. Actual HRA received.
2. 50% of salary (when house is situated in a metro city) or 40% of salary (when house is situated in any other place)
3. The excess of rent paid over 10% of salary.
NOTE . Salary here means: Basic + D.A. (if it forms a part of retirement benefit) + Commission as a fixed % on turnover.
a) Salary shall be determined on due basis for the period for which the employee occupies rented accommodation in the previous year and gets HRA.
b) Exemption is not available if employee lives in his own house, or in a house for which he does not pay any rent.
c) For criteria of 50% or 40% of salary as deduction, place of employment is not significant but place where the house is situated is important.
d) Deduction from HRA depends on Salary of the employee, Amount of HRA, place of residence (not place of employment), rent paid by the employee.
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