Please clarify the following query.
Basic salary received in Full for the month.
HRA received for 25 days, as 5 days leave was deducted.
Now when calculating exemption what should be the rule. Should be calculated for 25 days or full month.
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Exemption on hra - individual
Replies (3)
HRA is calculated on basic salary. If the basic salary is received in full then accordingly the calculation will be made for HRA. The exemption of HRA will be available up to the the minimum of the following three options:
- Actual house rent allowance received from your employer
- Actual house rent paid by you minus 10% of your basic salary
- 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro
for 25 days as HRA received there in rule.
I agree with Mr. Charu Hinger ji
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