HRA calculation u/s 10(13A) of I.T. Act.

Please compute taxable & exempt portion of HRA in following case as under:-

i) HRA Rs.2500/- per month getting from employer.

ii) Basic Salary Rs. 40000/- per Month.

iii) The employee is also paying Rent @ 2500/- per Month to lanlord.

iv) He is living in Bhilwara (Rajasthan).

Replies (8)

as per section 10(13A) read with rule 2A ,least of following three will be exempted


House Rent allowance (HRA) received.
50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case.
Rent paid in excess of 10 % of salary.

HENCE ACTUAL HRA RECEIVED= 2500*12= 30000

40% OF SALARY=  480000*40%= 196000

RENT PAID- 10% OF SALARY= 30000- 480000*10%=O (CAN NOT BE NEGATIVE)

HENCE NO EXEMPTION IN THIS CASE 

agree with future CA...no exemption ...

Rent Received = 2500*12 = 30000

40%  of salary =  480000*40% = 196000

Excess of Rent paid over 10% of salary =  0

Considering the least of above

No exemption :)

Originally posted by : future ca

as per section 10(13A) read with rule 2A ,least of following three will be exempted


House Rent allowance (HRA) received.
50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case.
Rent paid in excess of 10 % of salary.

HENCE ACTUAL HRA RECEIVED= 2500*12= 30000

40% OF SALARY=  480000*40%= 196000

RENT PAID- 10% OF SALARY= 30000- 480000*10%=O (CAN NOT BE NEGATIVE)

HENCE NO EXEMPTION IN THIS CASE 

agree with all the CCI friends who answered....

Sorry to ask bahetiji . but are you working CA?

(i) HRA received

(ii) Rent Paid-10% of Salary

(iii) 50% of salary in metro city like, mumbai, delhi, calcutta, channi &

       40% of salary in other city

LEAST OF ABOVE THREE IS EXEMPT

AND TAXABLE=HRA RECEIVED-EXEMPT

 

Note- salary means- Basic Pay+D.A.+Commission+Taxable Salary income+pension(if taxable)

HI Mr. Paras

it seems you are new, such questions are asked so that a learner who is not aware can learn from this platform.

Sorry to say but please change the way you think.

you can also ask a question which you already know with the intention that common people can benefit.

Thank you.

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