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 ..
CA Anita Bhadra
(Expert)
15 March 2022
HRA Exemption shall be calculated proportionately on 5 month salary.
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