income from salary

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mahesh

mahesh (Querist)
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06 March 2008 how to calculate HRA working

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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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.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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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

CA. Kirti S. Ganatra (Expert)
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06 March 2008 What is your question!!!!!!!!!

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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06 March 2008 can u Be more clear in ur query?

CA J M Pattanayak

CA J M Pattanayak (Expert)
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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.

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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19 March 2008 is ur query solved

mahesh

mahesh (Querist)
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09 May 2008 you have sent me the msg of HRA working. I have solved my problem with the help of u

Jitender

Jitender (Expert)
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07 September 2008 i think query is resolved.

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