HRA Calculation

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MCOM MBA ICWAI-Inter(Studying)

197 Points Posted on 16 January 2009

Dear All

Please Check this HRA Calculation

Mr.B's salary Structure

Basic-8000. HRA-4000.PF-780.Allowances-3000.Travel Allowance-1500

Total salary For a Month-17280/-

Now Please See my HRA Calculation

1,Mr.B lives in a non-metro city and he is a male

So First Calculation 40% of 8000=3200

2.HRA Received by Mr.B from employer=4000

3.Actual Rent Paid by Mr.B Rs.5000/-

So Excess of rent paid over 10% of salary=5000-800(10% of 8000)=4200

Now the least of three will be taken for HRA exemption.ie,Rs.3200/-

Now please see my calculation if I am wrong please tell me

And please let me know if the HRA exemption rules for oraganisations

with SEZ Status will be different or not.

Thanks In Advance

BINUMS

Replies (4)

Chartered acooutant in practice

575 Points Posted on 16 January 2009

Originally posted by :BINUMS
"	Dear All Please Check this HRA Calculation Mr.B's salary Structure Basic-8000. HRA-4000.PF-780.Allowances-3000.Travel Allowance-1500 Total salary For a Month-17280/- Now Please See my HRA Calculation 1,Mr.B lives in a non-metro city and he is a male So First Calculation 40% of 8000=3200 2.HRA Received by Mr.B from employer=4000 3.Actual Rent Paid by Mr.B Rs.5000/- So Excess of rent paid over 10% of salary=5000-800(10% of 8000)=4200 Now the least of three will be taken for HRA exemption.ie,Rs.3200/- Now please see my calculation if I am wrong please tell me And please let me know if the HRA exemption rules for oraganisations with SEZ Status will be different or not. Thanks In Advance BINUMS	"