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Hra

This query is : Resolved 

23 April 2012 In HRA if rent payed is less then 10% of salary what will be the treatment of HRA?

23 April 2012 Whole HRA would be taxable under SALARY.Since u/s.10(14) HRA is exempt by least of following:
1 40% or 50% of Salary as the case may be.
2.Actual HRA received
3.Excess rent paid over 10% of salary
the last one would be least since it tends to be negative hence nothing would be exempt.

23 April 2012 Thank you sir.


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