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

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 :)

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.