Hra exemption

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This query is : Resolved

Gaurav (Querist)

22 June 2013 Assessee lives in a rented premises for only 6 months during the FY
HRA received - 12900 for 10 months (due to leave taken without pay during the year)
rent paid - 6000 for 6 months
basic salary - 25000 for 10 months....

HRA exemption: lowest of
1. 40% of (25000*10)
2. 12900*10
3. (6000*6)-(10% of (25000*10))

or

1. 40% of (25000*10)
2. 12900*10
3. (6000*6)-(10% of (25000*6))

In first case exemption comes to Rs. 11000 and in second case it comes to Rs. 21000.

Rupesh Jain

Rupesh Jain (Expert)

22 June 2013 pls take salary and HRA equally period then calculate exemption

CA Kapil Verma

CA Kapil Verma (Expert)

22 June 2013 Correct calculation is :

HRA exemption lowest of :

1. 40% of (25000*10)
2. 12900*6
3. (6000*6)-(10% of (25000*10))

Gaurav

Gaurav (Querist)

22 June 2013 hello
sorry to say but both these replies are contradictory with each other.....
can anyone clarify please

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

22 June 2013 Since the employee stayed rented house for 6 months only. so actual HRA calculation need to be done on 6 months only. all other months what ever HRA received is fully taxable. so no need to calculate for 10 months basic salary

HRA exemption least of the following

A.(Rs.25000x6)x 40%
B.Rs.12900x 6
B (Rs.6000-10% of Rs.25000)x6 months

Gaurav

Gaurav (Querist)

27 June 2013 any other possible views ??

in computax software there is space only for total HRA and Total rent paid during the year

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

08 July 2013 in computax, if you double click or press F-5 you can feed the amounts monthly

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