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HRA Calculation

chetan (accountant) (321 Points)

29 June 2011

Hi friend

Please give me HRA calculation on below details. Mr. A has paid rent 18000/- P.A. how much HRA exemption he get. The person is living in Mumbai.

Annual salary breakup

Basic- 59962

HRA- 29981

conveyance-8721

speical allowance-86378

leave encashment 2933

monthly incentive-85448

insurance incentive-13561

Total 286984

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15 Replies

CA Himanshu Khurana (Chartered Accountant) (813 Points)
Replied 29 June 2011

Exemption Can be avail whichever is lower

1. Hra Received = 29,981/-

2. 50% of salary = 29,981/- (50% in case of Delhi., Mumbai, Calcutta, Chennai , in other City 40% of salary)

3. Rent paid - 10% of salary = 12,003.8/-

Exemptiopn Can be Given Rs. 12,003.8/-

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 29 June 2011

leat of following is exempted u/s 10 (13a) read with rule 2a

actual hra=29981

rent paid- 10% of salary= 18000-5996,2= 12003.8

40% of salary=59962*40%=23084.8

hence exempted amt.= 12003.8

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 29 June 2011

leat of following is exempted u/s 10 (13a) read with rule 2a

actual hra=29981

rent paid- 10% of salary= 18000-5996,2= 12003.8

50% of salary=59962*40%=29981

hence exempted amt.= 12003.8

(Guest)

HOE YOU CALCULATED 10% OF SALARY?

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 29 June 2011

salary for the purpose of hra= basic salary+ d.a (which enters)

1 Like

(Guest)

OK. FUTURE C.A. IS RIGHT.

CA Rajdeepsinh Kanchava (Senior accountant at KPO) (736 Points)
Replied 30 June 2011

HRA EXEMPTION CALCULATION U/S 10(13A) IS AS FOLLOWS. LEAST OF THE FOLLOWING IS EXEMPTED FROM HRA. 1.HRA ACTUALL RECEIVED. 2.RENT PAID-10% OF SALARY. 3.50% OF SALARY IN CASE OF HOUSE SITUATED IN BCDM(BOMBAY,CULCUTTA,DELHI,MADRAS) OR 40% OF SALARY IN CASE OF A HOUSE SITUATED IN OTHER PLACE. SALARY FOR THIS PURPOSE= BASIC+D.A.(IF TERMS OF EMPLOYMENT SO PROVIDE)+% OF COMMISSION. SO,MINIMUM OF THE FOLLOWING WILL BE EXEMPTED. 1.HRA ACTUALY RECEIVED_29981 2.RENT PAID-10%OF SALARY(18000-5996)_12004 3.40% OF SALARY(40%*59962)_23985 SALARY=59962 AS D.A. AND % OF COMMISSION IS NIL. SO 12004 WILL BE GIVEN AS EXEMTION. THANK U...:-)%OF SALARY(18000-5996)_12004 3.40% OF SALARY(40%*59962)_23985 SALARY=59962 AS D.A. AND % OF COMMISSION IS NIL. SO 12004 WILL BE GIVEN AS EXEMTION. THANK U...:-)

Aparna Raja K.C (Student) (520 Points)
Replied 30 June 2011

Originally posted by : future ca
	leat of following is exempted u/s 10 (13a) read with rule 2a actual hra=29981 rent paid- 10% of salary= 18000-5996,2= 12003.8 50% of salary=59962*40%=29981 hence exempted amt.= 12003.8

Agree :)

CA Rajdeepsinh Kanchava (Senior accountant at KPO) (736 Points)
Replied 30 June 2011

SORRY 3RD WILL BE 50% OF 59962 that is 29981 but still answer will be the same.

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 30 June 2011

Originally posted by : Rajdeepsinh
	SORRY 3RD WILL BE 50% OF 59962 that is 29981 but still answer will be the same.

i have given corrected answer secondly. thanks for noticing

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 30 June 2011

Originally posted by : future ca
	leat of following is exempted u/s 10 (13a) read with rule 2a actual hra=29981 rent paid- 10% of salary= 18000-5996,2= 12003.8 40% of salary=59962*40%=23084.8 hence exempted amt.= 12003.8