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Hra exemption case

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This is regarding HRA exemption for the financial year 2016 (April 2016 to March 2017).


While calculating “Rent Paid in excess of 10% of salary”, I am getting a negative value for the period from July 2016 to March 2017. The monthly details of Basic Pay, HRA received and rent paid are as shown below. Also, the same is attached as spreadsheet file.

What is the methodology for calculating the amount exempted under HRA? Please advice.


Attached File : 1013621 20170309154005 hra.xlsx downloaded: 117 times
Replies (4)

if u get negative amount while calculating rent paid -10% salary you have to ignore the same in the sense value is assigned as zero

Does that mean, I will be eligible for an HRA exemption of only 
204000 –  10% of 2038200 = 204000 – 203820 = 180

 

ACTUAL hra  239589

assumed you stay in metro  so 50%*2038200=1019100

Rent paid -10% salary =204000-203820=180

Least of the three 180

Actual HRA =239589

Less exempt u/s 10(13A)=180

TAXABLE hra=239409

 

Thanks for the reply. It is clear now.

 


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