income from salary
This query is : Resolved
CA. GOPAL SONIKA
(Expert)
06 March 2008
If you happen to be a salaried employee claiming House Rent Allowance (HRA) from your employer, you are eligible for an Income Tax exemption under Section 10(13A) of the Income Tax Act. You calculate this exemption amount as under.
Find the minimum of the following three options:
a) Actual house rent allowance received from your employer
b) Actual house rent paid by you minus 10% of your basic salary
c) 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum figure is the allowed income tax exemption on house rent allowance.
Find the minimum of the following three options:
a) Actual house rent allowance received from your employer
b) Actual house rent paid by you minus 10% of your basic salary
c) 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
This minimum figure is the allowed income tax exemption on house rent allowance.
S.Srinivasaraghavan
(Expert)
06 March 2008
Is the questioner wanting to know manner of calculation of allowable HRA under IT Act or how to structurise HRA to get maximumum tax benefit?
CA. Kirti S. Ganatra
(Expert)
06 March 2008
What is your question!!!!!!!!!
06 March 2008
can u Be more clear in ur query?
CA J M Pattanayak
(Expert)
08 March 2008
Hi,Mahesh I think ur asking about the HRA exemption calculation.
HRA exemption is to be calculated as follows.
1. Actual HRA received
2. Rent paid over 10% of Salary ( Basic n DA )
3. 50% of basic salary if the accomadation is at Metro n 40% if non metro.
The lower of the above is exempted hence to be deducted from the HRA received.
I think I have answered ur query.
Any further doubt feel free to ask.
HRA exemption is to be calculated as follows.
1. Actual HRA received
2. Rent paid over 10% of Salary ( Basic n DA )
3. 50% of basic salary if the accomadation is at Metro n 40% if non metro.
The lower of the above is exempted hence to be deducted from the HRA received.
I think I have answered ur query.
Any further doubt feel free to ask.
CA. GOPAL SONIKA
(Expert)
19 March 2008
is ur query solved
09 May 2008
you have sent me the msg of HRA working. I have solved my problem with the help of u
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