HRA Exemption if Paid for Part of the Year.
This query is : Resolved
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 ..
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 ..
15 March 2022
HRA Exemption shall be calculated proportionately on 5 month salary.
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