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Hra exemption

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SANJAY G.PATIL (Querist)
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11 March 2012 I am working in Life Insurance Corporation of India.According to our "Terms of employment" only Basic Pay is considered for Provident Fund Contribuition.i.e. every month 10% of my basic salary is deposited in provident fund account.

My query is how HRA exemption is to be calculated if I am staing in a rented house & in a non-metro city ?

Whether to take 1/10th of only BASIC pay or 1/10th of BASIC pay + Dearness Allowance paid on that basic.Kindly guide.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 March 2012 If the Dearnesss allowance not taken for computation for retirement benefit than you cannot consider for HRA calculation also. so you can consider only 10% basic salary only

SANJAY G.PATIL

SANJAY G.PATIL (Querist)
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12 March 2012 Thanx for your guidance Sir.

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