15 March 2022
Hello , Clarification on HRA exemption .
As per act the exemption of HRA is 1) HRA received. 2) HRA Paid less 1/10 of basic .
Suppose HRA paid is for 5 months only ( due to work from home) then 1/10 of basic be calculated on 5 months salary only or entire 12 months ? HRA Received --- 23000 x12=276000 HRA Paid --- 20000 x5=100000 Basic 150000x12=1800000
If 1/10 is calculated on entire 12 months salary the exemption comes negative ... So will not allowed. Please clarify ..
CAclubindia
