hra calculation
This query is : Resolved
06 March 2010
SIR
my salary is Rs.30000 per month and my company not paying me DA but they are paying Special allowance. Please tell me that while calculating HRA exemption should i take special allowance with my basic salary and i am paying rent of Rs 12500 per month.
My salary break up are as follows:
Basic Rs18000
HRA Rs 7200
Ta Rs3600
special allowance Rs.1200
company not deducted any pf or esi please tell my hra expemtion
my salary is Rs.30000 per month and my company not paying me DA but they are paying Special allowance. Please tell me that while calculating HRA exemption should i take special allowance with my basic salary and i am paying rent of Rs 12500 per month.
My salary break up are as follows:
Basic Rs18000
HRA Rs 7200
Ta Rs3600
special allowance Rs.1200
company not deducted any pf or esi please tell my hra expemtion
06 March 2010
calculation of HRA exemption:
least of following is exempt from tax
1 50% of salary if lived in Mumbai, Kolkatta, Delhi or Chennai or 40% of salary i.e.18000 in your case only basic.
2 HRA received i.e. 7200
3 excess of rent paid over 10% of salary i.e. 12500-10%of 18000= 10700
So full HRA will be exempt even if in first case you will get 40% i.e. 7200
least of following is exempt from tax
1 50% of salary if lived in Mumbai, Kolkatta, Delhi or Chennai or 40% of salary i.e.18000 in your case only basic.
2 HRA received i.e. 7200
3 excess of rent paid over 10% of salary i.e. 12500-10%of 18000= 10700
So full HRA will be exempt even if in first case you will get 40% i.e. 7200
06 March 2010
thanks for your effort i have also thing done but some of my senior saying special allowance also included while calculating hra. because it just like incentive or commission to employee in I T develop company
06 March 2010
No.special allowance is not inclued for HRA exemption calculation. Commission & incentive based on fixed percentage on turnover it is included but special allowance is normal allowance not based on turnover
18 March 2010
Thanks Sir
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