Hra u/s. 10(13)a

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Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2011 Dear All,
My query is regarding HRA. If an employee works for 01-Apr.-11 to 15-Dec.2011. At his Full & final Settletment, he produces Rent Receipt for Apr. to Dec.11. Should we give exemption for 8 months or 8.5 months?.

Details are below.
Rented house is in Non Metro Town.
Rent Rs.4000/- PM.
Basic Rs.10260/-PM
HRA Rs.5760/-PM
How much period should we consider for HRA exemmption. If we are considering for part of the month also, then what about the rent paid. will it be also for 8.5 months.

Rgds.

chetan soni

chetan soni (Expert)
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29 December 2011 employee is allowed to claim the HRA till his last date of employment. So in your case the date is 15-dec-11 i.e. means 8.5 months.

Now calculation part.

Total Rent paid. (till 15-Dec) 34000
Total HRA Received (till 15 Dec) : 48960.00
Total Basic (till 15-dec) : 87210.00

Noe Deduction allowed, is least of following;

1. Rent paid in excess of 10% of basic i.e. Rs. 25279
2. HRA Recd. i.e. Rs. 48960.00
3. 40% of basic i.e. Rs. 34884.00

So HRA exemption will be Rs. 25279.00

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