HRA Salary Calculation

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This discussion clarifies House Rent Allowance (HRA) calculations for tax exemption. It explains that while HRA might be calculated on basic salary, tax exemption considers both basic salary and Dearness Allowance (DA). The example shows how to determine the actual HRA exemption amount by comparing rent paid against a percentage of salary, highlighting the difference between exempted and taxable HRA.

AGM OFFICE FAZILKA

AGM OFFICE FAZILKA (Querist)
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28 April 2020 I am getting HRA Rs 28177 per year on Basic Salary . DA is not used for calculation of HRA. I am paying rent Rs 5000 per month. My Basic Salary is Rs 225382 and DA is Rs. 313283. What will be my HRA Exemption and Salary for HRA Calculation.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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29 April 2020 Your salary is basic+DA Rs. 538665/-

Rent paid excess of 10% of salary will be least 60000-53867=6133 is your HRA Benifit or Exemption.

AGM OFFICE FAZILKA

AGM OFFICE FAZILKA (Querist)
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06 May 2020 I am bit confused about salary, when I am getting HRA on Basic Salary then for exemption why DA is included in Salary

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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06 May 2020 Salary for HRA exemption consider salary basic and DA .