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Hra clarification for exemption

Sathish.Bhogadi (Executive) (91 Points)

23 February 2013

Dear All,

We have a small Clarification for HRA Exemption for Income Tax Caluculation Purpose.

Suppose wife and husband working in same company and salried employees. in this case HRA exemption available for Income Tax purpose those people or not.

Give me your valuble feedback.

Thanks & Regards,

Sathish Babu.Bh

sathish.bhogadi @ gmail.com.

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3 Replies

CA Deepak Rathore (EXPERT) (281 Points)
Replied 23 February 2013

As per the Indian income tax law, the HRA exemption should be calculated as the least of the following.

1. Rent paid in excess of 10% of basic salary.

2. Actual HRA received by the employee.

3. Forty percent of basic salary, if the location of the residence is in a non-metro city/town or 50% of basic salary, if the location of the residence is in a metro city

since , rent will be paid by either wife /husband

so hra received will be fully taxable in one person and exempt upto above condition in another

as mention in 1 condition

Hope u wil understand

Sathish.Bhogadi (Executive) (91 Points)
Replied 23 February 2013

Originally posted by : deepak rathore
	As per the Indian income tax law, the HRA exemption should be calculated as the least of the following. 1. Rent paid in excess of 10% of basic salary. 2. Actual HRA received by the employee. 3. Forty percent of basic salary, if the location of the residence is in a non-metro city/town or 50% of basic salary, if the location of the residence is in a metro city since , rent will be paid by either wife /husband so hra received will be fully taxable in one person and exempt upto above condition in another as mention in 1 condition Hope u wil understand