02 July 2011
Dear sir for hra exmption is there any rule for hra calculation that hra should be taken on basic or we can take on gross also is their any specific rule or it depends on company policy
02 July 2011
Rule 2A of the Income tax Rules,1962 governs the calculation of HRA under section 10(13A) of the Income tax Act,1961. Salary for the above calculation purpose is defined as " salary includes dearness allowance,if the terms of employment so provide, but excludes all other allowances and perquisites". u can see this in explanation to rule 2A read along with Rule 2(h) of Part A of the 4th schedule .
CAclubindia
