Basic, HRA and TAX calculation

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Arun

28 Points Posted on 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

Replies (2)

saleemoddin

php developer

62 Points Posted on 13 May 2009

Hi,

See here under HRA Calculation & Formula
Consider Least of Following:
1) HRA Received:
2) 40% of Basic + DA for Non Metro city
3) 50% of Basic for Metro City (Chennai, Delhi, Kolkata or Mumbai)
4) Rent paid-10% of Basic.

Visit https://www.payit.in to calculate your income tax.

Balaji R K

Salaried

105 Points Posted on 14 May 2009

Hi Arun,

In your case there is no HRA calculation. HRA U/s 10(13A) is allowed as deduction only for Salaried employees, however you can claim the rent paid through 80GG. The calculation for the same is as follows.

a. 2000 per month (24000 p.m.) or 25% of Gross total income

whichever is less..

As per the above information given by you.

Rs.102500 (25% of 410000) or Rs.24000 whichever is less.