04 July 2007
hi i have qry if any person get HRA from his employer which is Rs 26,000 & his income is Rs 2,00,000 & pay Rs. 50,000 as house rent than that is Tax deduction here Rs. 26,000 HRA Actualy he GET Rs. 30,000 (net amount total rent-10% of salary) or Rs. 24,000 limit on house rent
under which rule chapter vi or section 10(b) & why plz hlep me
05 July 2007
Firstly, i must tell you that section 10(13A) deals with HRA and not Section 10(b). Lower of the following is available as exemption: i)Actual rent paid-10% of salary ie. 50000-20000=30000 ii)50% of salary or 40% of salary depending on the city in which house is taken on rent.(ie 100000) iii) Actual HRA received.(ie 26000) therefore 26000 will be exempt Provided that the assessee, spouse, minor child do not have a residential house property in that city.
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