banner_ad

HRA Exemption

Tax queries 1546 views 9 replies

Dear all,

                Pls tell me how to calculate HRA exemption.............Under 80cc

Actual Rent -7500 p m

In Payroll HRA - 2000 p.m

Basic (salary) -6500 p m.

Replies (9)

HRA is exempted U/S 10(13A).

Ok,,,

      Tell me how to calculate the HRA Exemption.....

Least of the below 3 is exempt :

1. 40 % of Salary for the period during which rent accomdation is occupied (50% in case of living in Delhi ,Mumbai, Chennai & kolkata.

2. Actuly HRA Received.

3. Rent Paid over 10% of Salary.

 

Salary = Basic+ D.A forming part of salary +Commission based on fixed ercentage of turnover.

HRA exemption will be least of the following:

1.HRA received

   Rs.2000*12 = Rs24,000

2. Rent paid in excess over 10% of salary

  Rs .90,000-10%* (78000) = Rs.82,200

3.40% of salary

40%* Rs.78000 = Rs31,200

Hence exemption will be Rs.24,000

 

If  the employee resides in a metro city then replace 40% by 50% and calculate the exemption accordingly.

 

Regards,

Fatema.

HRA Calculation....

1. 40 % of Salary  (50% in case of metropoliton cities)

2. Actual HRA Received.

3. Rent Paid (-) 10% of Salary.

Salary = Basic+ D.A (forming)+Sales Commission.

Whichever is less is exempt from tax....

agree wit all.. but how sad.. income 8500 & rent paid 7500

only 1000 p.m. net income 

Pls see once again Mr. Punit.................i mentioned the BASIC ok not Gross salary or Net salary.............................................

HRA Calculation....

1. 40 % of Salary  (50% in case of metropoliton cities)

2. Actual HRA Received.

3. Rent Paid (-) 10% of Salary.

Salary = Basic+ D.A (forming)+Sales Commission.

Whichever is less is exempt from tax....

YOUR TOTAL SALARY =   BASIC 8000 +  HRA  3000+  CONV  ALLOW 2000 = 13000/-
 

1. 40% of Salary(Basic +DA) (8000*12) =  96000/- (not live in metrocity, kol,mum, chen, del)

2. actual HRA received  = 3000*12 = 36000

3. actual  HRA PAID = 2500*12 = 30000/-  Less 10% OF BASIC Salary (8000*12)= 9600 

= (30000 -9600  ) =  20,400/-

so HRA EXAMPTION  IS  20,400/-  because  this one is less form three

less is exempt for  HRA

ok...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details