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Hra calculation

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Querist : Anonymous

Querist : Anonymous (Querist)

24 May 2014 One Employee our organisation paid rent of rs 240000/- p.a and His Annual package is around 12,00,000/- p.a. Can any tell me how he get full exemption for HRA ?
Please provide bifurcation of salary structure also with example

CA. Amit G. Chandani

CA. Amit G. Chandani (Expert)

24 May 2014 Assuming 20% of salary package – Rs. 2,40,000/- is HRA and the person lives in non-metro city.
HRA exemption is Rs. 1,44,000/- Accordingly Taxable Income is Rs. 10,56,000/-
If full HRA exemption of Rs. 2,40,000/- to be claimed, Rent of Rs. 3,36,000 (28,000 pm) to be atleast shown. Taxable Income in this case would be Rs. 9,60,000/-

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