Hra treatment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 June 2012
Sir
Please difine me how we treat HRA ( Housing Rent Allowance ) in income tax at the end of the year . How we can take benefit of HRA in income tax.
Thanks & Rgds
Mukesh Kumar
Please difine me how we treat HRA ( Housing Rent Allowance ) in income tax at the end of the year . How we can take benefit of HRA in income tax.
Thanks & Rgds
Mukesh Kumar
08 June 2012
HRA is exempt to the extent of least of the following:
1. Actual amount received
2. Rent paid - 10% of salary
3. 40%/50% of salary
1. Actual amount received
2. Rent paid - 10% of salary
3. 40%/50% of salary
C.A Anshul Singhal
(Expert)
08 June 2012
Salary 600000
HRA 8500
Suppose Actual Rent Paid Yearly 84000
Rule Of HRA
Lowest Of Below
50% In Metro City /40% others state 300000
Actual HRA Received 102000
Actual Rent paid -10% Of Salary 24000
Suppose Actual Rent Paid Yearly 84000
HRA Exemption 24000
Salary Included Basic Salary+DA+Commission On Fixed Percentage On Turnover
Assumed Salary Given Included basic salary +DA
Calculation
Salary 600000
HRA 102000
(8500*12)
Total Salary Income 702000
Less- Hra Exemption 24000
Net salary Income 678000
Less- 80C Deduction 100000
Less- 80D Deduction 35000
Net Income 543000
Tax 30600
Education cess 612
Secondary Higher Education cess 306
Total Tax 31518
HRA 8500
Suppose Actual Rent Paid Yearly 84000
Rule Of HRA
Lowest Of Below
50% In Metro City /40% others state 300000
Actual HRA Received 102000
Actual Rent paid -10% Of Salary 24000
Suppose Actual Rent Paid Yearly 84000
HRA Exemption 24000
Salary Included Basic Salary+DA+Commission On Fixed Percentage On Turnover
Assumed Salary Given Included basic salary +DA
Calculation
Salary 600000
HRA 102000
(8500*12)
Total Salary Income 702000
Less- Hra Exemption 24000
Net salary Income 678000
Less- 80C Deduction 100000
Less- 80D Deduction 35000
Net Income 543000
Tax 30600
Education cess 612
Secondary Higher Education cess 306
Total Tax 31518
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