IT DEDUCTION ON RENT

This query is : Resolved

shyam (Querist)
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27 May 2008 HI,
ONE OF MY FIREND HE IS PAYING 5000/- P.M. AS RENT AND THE COMPANY PAYING HIM HRA AS RS.3200/- .HIS BASIC + DA COMES TO RS.7375/- .HE IS IN DELHI.

LET ME KNOW THE IT DEDUCTION ON THIS PLS.

Nilesh Damji Chheda

Nilesh Damji Chheda (Expert)
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27 May 2008 the allowable deduction is lower of following
1)actual Hra Recd. i.e Rs. 3200/-
2)50% of 7375/- i.e 3687/-
3)actual rent paid over 10% of 7375/- i.e 4263.
the lowest of above i.e 3200/- is allowed as deduction

Shekar

Shekar (Expert)
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27 May 2008 UR total HRA recieved for the year would be 3200*12=38200...From this least of following 3 would be deducted:
1)Actual HRA 38200
2)Rent paid-10% of Basic+da 51150
3)50% of Basic +da 44250

So (1) being least would be deducted from HRA..Since both HRA recieved & exempt are same...whole HRA recieved is exempt...

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