Hra exemption

*I am assuming that Non merto cities means cities other than Calcutta, Chennai, Delhi n Mumbai.

*It is assumed that given rent is for 1 month. Also it has been paid throughout the year i.e. 12 months.

* Do you really get Basic salary less than HRA or has made an error of typing? I will solve assuming your data as the correct one.

*Caculations are use to be done annually.

*In your case salary would be taken basic only.

*Your annual Salary is 78,000 as per 6,500 per month data and not 1,42,512.

HRA will be exempt for min of three following amounts- (FOR BASIC SALARY 6,500)

1) Actual HRA Recieved                                                           1,42,512

2) Annual rent paid minus 10% of Salary

    1,44,000-7,800                                                                       1,36,200

3) 40% of salary

     40% of 78,000                                                                          31,200

AND EXEMPTION IS OF RS. 31,200