HRA Exemption

Please give hear full  breakup of salary .

(ii) House Rent allowance  - House rent allowance granted to

the employee is exempt u/s 10(13A) to the following extent;

Provided expenditure on rent is actually incurred, the

amount of exemption granted is the least of

(1) HRA received

(2) Rent paid Less 10% of salary

(3) 40% of salary, (50% in case of Mumbai, Chennai, Kolkata

& Delhi). Salary includes bonus + Dearness allowance,

where provided by terms of employment.

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It has to be noted that only the expenditure actually incurred

on payment of rent in respect of residential accommodation

occupied by the assessee subject to the limits laid down in rule

2A, qualifies for exemption from income-tax. Thus, house rent

allowance granted to an employee who is residing in a house/flat

owned by him is not exempt from income-tax. The disbursing

authorities should satisfy themselves in this regard by insisting on

production of evidence of actual payment of rent before

excluding the house rent allowance or any portion thereof from

the total income of the employee. Though incurring actual

expenditure on payment of rent is a prerequisite for claiming

deduction under section 10(13A), it has been decided as an

administrative measure that salaried employees drawing house

rent allowance upto3,000 per month will be exempted from

production of rent receipt. It may, however, be noted that this

concession is only for the purpose of tax deduction at source,

and, in the regular assessment of the employee, the Assessing

Officer will be free to make such inquiry as he deems fit for the

purpose of satisfying himself that the employee has incurred

actual expenditure on payment of ren

the exemption of HRA is available between least of following three

1 actual HRA received

2 rent paid- 10%(basic salary +da)

3 50% (basic salary+ da)

if person paid rent 9000 pm in noida then how much amount he can cliam ?