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Hra calculation

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Querist : Anonymous

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Querist : Anonymous (Querist)
29 March 2012 Hi,
One of our employee is receiving HRA of Rs 18750 pm. He was in company from the begining of this FY.
He produced one rent receipt of Rs 15000 for march month as he started livin in Rental house.
His Basic & DA is Rs 37500 & Rs 7500 per month respectively.

Please tel me what is the exempted amount & Taxable amount in this case.

If possible show the calculation.

Thanks in advance,

Ann
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CA Siddhartha Bhardwaj

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CA Siddhartha Bhardwaj (Expert)
29 March 2012 HRA is exempt to the extent of lower of the following:

1. Actual HRA received - Rs. 18,750
2. Rent Paid - 10% of salary - Rs. 10,500
[15,000-10%*(37,500+7,500)
3. 40% or 50% of salary

So, in this case Rs. 10,500 shall be exempt and Rs. 7,250 shall be taxable.
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Mihir Doshi

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Mihir Doshi (Expert)
29 March 2012 Agree with Mr. Siddhartha.
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