HRA Exemption

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...