Hra exemption

Hi,

I was living on rent of Rs 15,000 PM since April 2015 to Dec -2015 (non metro)

Basic salary - 34750

HRA - 17375

What will be my HRA exemption.

How will this be calculate (rent paid - 10% basic)

Will the basic be will also for 9 months

Replies (3)

I Will Assume That Basic Salary And HRA Recived You Have Given Above Is Per Month

List Of The Following Is Exempt As HRA US 10(13A)

1) Actual HRA Received RS. 17375 per month

2) Excess Rent Paid Over 10% of Salary (15000 - 0.10x34750 ) = Rs.11,525/- per month

3) 40% Of Basic Salary  (34750 x 0.40) = Rs. Rs.13,900

So List of the bove from point 1 to 3 is Rs.11,525 per month so if you are paying rent for 9 months and getting salary and HRA also for 9 months total Exemption amount is Rs.11,525 x 9 months Rs.103725

 

Note : if there is any change  in rent amount per month or any change in salary amount per month HRA exemption will change accordingly

Thanks for the reply.

I moved to my own house for which I got the possession in Dec,

Salary remains the Same

Will this effect the calculation?

If You are getting possession and it's registered in the month of December than you have to take only for April To November i.e for 8 Months

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