Calculation of hra exemption

Exemptions will be minimum of following

Actual HRA

Rent Paid in Excess of 10% of Basic

40% of Basic

In Your case the computation would be as follows; It is assumed that HRA remain unchanged.

Thanks Mr. Khan.

Can u please let me know which forms part of Salary for calculation of 40% & 10% of Salary. Is it Basic+DA or any other also forms part of it?

Thanks & Regards

.

HRA received                                                                 62400

Less: exemption as per 10(13A)(whichever is least)

i. Total HRA recd.. 6240*10=62400   -----------A

    Hra paid excess of 10% of salary..

ii. salary.. 15600*7= 109200

             18600*3   =   55800

   Total salary         = 165000

   10% of salary = 16500

   HRA                 = 62400

   HRA excess of 10% salary    = 45900   -------B

iii. 50% of basic salary = 165000*50% 

                                    = 82500-----------------C            -45900

.I still have doubt, whether Total HRA recd is 62400(for 10 months) or 74880( for 12 months)... please clarify my doubt

may be, this one is right!!

HRA received 6240*12                                                      74880

Less: exemption as per 10(13A)(whichever is least)

i. Total HRA recd.. 6240*12=74880   -----------A

ii.    Hra paid excess of 10% of salary..

   salary.. 15600*7= 109200

               18600*3 =   55800

   Total salary         = 165000

   10% of salary            = 16500

   Rent paid 8000*10     = 80000

   Rent excess of 10% salary    = 63500   -------B

iii. 50% of basic salary = 165000*50% 

                                    = 82500-----------------C            -63500

Calcuation of Salary the following component will came

1. Basic Salary

2. D.A. (If it is provided  within the terms of Employment)

3. Commission (on a fixed persentage of Ternover)

Calculation of HRA

1. Basic Salary = Rs. 15600 X 9 manths (i.e. from 01.04.2011 to 31.12.2011) & Rs. 18600 X 3 manths (i.e. from 01.01.2012 to 31.03.2012) =Rs. 1,96,200.00

2. HRA compnent =Rs.6240 X 12 manths (Assume HRA unchanged on the Salary Increment)= Rs. 74880.00

3.Rent Paid =8000 pm X 10 manths  (i.e. from 01.06.2011 to 31.03.2012)= Rs. 80000.00

least of the Sume will be deduct u/s 10(13A) rule 2A

1. Actual HRA  Receive = Rs. 74880.00 (Rs. 6240.00 X 12 manths)

2.Rent paid over 10% of Salary =Rs. 80000- (10% of Rs. 196200) =Rs. 60380.00

3. 50% of Rs. 196200.00 =Rs. 98100.00 (reside metro) or 40% of Rs. 196200.00=78480.00 (reside non-metro)

least of above sum Rs. 60380.00 will be deduct (i.e. Rs. 5031.00 pm)

What is right amount of HRA among all the replies received here? 

hi harini,

the exemption will be for 10 months only since he did not recieve any HRA during first two months therefore no HRA no exemption.

secondly, the salary to be calculated will be in different sections ie. from june to dec and then jan to march because there is an increment from jan. so salary would be calculated separately for calculating 10% and 50% of salary from jun to dec and jan to march.

total exemption is 62100.

sorry its HRA recieved for whole year but since rent is paid from june it means for first two months rent paid is zero hence minimum limit of exemption will b zero as in second condition is rent paid - 10% of salary. thus no exemption for first two months.

please go through the link for further clarifications:-

https://clearlogics.in/news_details.php?id=Nw%3D%3D