Note that Our Company situated in Metro City. Please tell us can we paid 37% HRA(House Rent Allowance) on Basic Salary or paid 50 % on basic salary
niloy sanyal (account manager) (777 Points)
22 June 2018Note that Our Company situated in Metro City. Please tell us can we paid 37% HRA(House Rent Allowance) on Basic Salary or paid 50 % on basic salary
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 22 June 2018
The actual HRA offered will be the lowest of the following three provisions:
niloy sanyal
(account manager)
(777 Points)
Replied 22 June 2018
If we shown HRA 37% on Basic Salary then it is wong as per income tax act or.................
i think its ok..
For calculation of Income Tax of Employee please follow this rule
The deduction available is the least of the following amounts:
a. Actual HRA received;
b. 50% of [basic salary + DA] for those living in metro cities (40% for non-metros); or
c. Actual rent paid less 10% of basic salary + DA
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
