HRA

 

Least of :

60,000 ( HRA Received )

Rs 45600 ( ie , 10% salary Less Rent Paid )

Rs 102000 ( 50% of Salary )

 

Therefore Rs 45600 will be allowed

 

actual hra 5000*12=60000

rent paid -10% salary

5500*12-(204000)=66000-204000=0

50% salary =102000

ENTIRE HRA RECEIVED RS60000 is taxable

 

 

Mr Karthik  salary for 10(13A) is basic plus DA PLUS COMMISSION ON TURNOVER

Mr. Sivaram sir , you have reduced entire salary from the HRA received. It is Excess of rent paid over 10% of salary.

Therefore 10% of salary would be Rs 20400

Excess would be 5500 * 12 , ie , 66000 - 20400 = 45600

oh thanks Mr Karthik  

Kartik you are right

Mr. Karthick is right.

Calculation of HRA deduction under Section 10(13a): A. HRA =5000*12= 60000 B. Rent Paid exceeds 1/10 of Salary* = 66000-19200=46800 C. Amount equal to 1/2 of Salary = 192000/2= 96000 The lowest amount is 46800/-. Hence Deductible amount is 46,800/- *Meaning of Salary as stated in clause (h) of rule 2 of Part A of the Fourth Schedule ="salary" includes dearness allowance, if the terms of employment provide, but excludes all other allowances and perquisites. So here Commission will not be included in Salary to calculate Deduction of HRA

Plzz show me the calculation of salary

Hra received= 60000 Rent paid -10% of salary = 66000-17520=48480 50% of salary= 87600 Salary = 10000*12+ 6000*60%*12+1%*1200000= 175200

Answer is 48480/- as per ICAI solution..how does it come. Can someone explain 

Attached below is the solution for the question

Ans is 48480

detailed ans in the given file