Tax calculation (HRA)

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Arun (Querist)
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28 March 2009 I work on contract basis with software firms. I need feedback regarding my tax calculation.

How do i calculate my HRA and Tax when i'm paid lumpsum by any firm. It is 50,000 per month and i was on contract only for 7 months.Before this, I worked elsewhere for 15,000 per month for 4 months.

I paid 6,500 per month as rent at noida.
The total income was 4,10,000 and TDS (tax deduction at source was 10.3% at both the places) how much do you think would be my HRA??

Awaiting your early reply

Thanks & regards
Arun

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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28 March 2009 I think ur are on contract basis, not a employee

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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29 March 2009 You must take the deduction of rent paid u/s 80GG which is minimum of
1.2000/- per month
2.25% of Adjusted GTI
3.Rent paid - 10% of GTI.

Arun

Arun (Querist)
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29 March 2009 Hi Nitin
Thanks for the reply but what is GTI and how do i calculate it?

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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29 March 2009 GTI = Gross total income
For the above section, GTI = Total income - deductions under chapter VIA - Long term capital gains - short term capital gains.

Arun

Arun (Querist)
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29 March 2009 Hi Nitin
Now considering that there is no other income source other than that mentioned, total HRA for my income would be 24,000.
Am i right?

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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30 March 2009 Yes.
Deduction u/s 80-GG comes to 24000/-.

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