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HRA is 8% of Basic

Tax queries 323 views 4 replies

My friend works in a Karnataka state government corporation. She gets HRA component of just 8% of Basic pay. Her office is in a city of less than 5 lakh population. Say if basic is 30000, DA is 11000, HRA is just about 2500. Is this valid amount? Can we claim more exemption?

Replies (4)
Yes, This is valid.

For HRA no more specific percentage of pay. In Salary Component BASIC & DA is must. All others by employer's deal...
For HRA exemption lower of the following

1. Actual HRA received

2. Rent paid - 10% of Salary (Basic + DA)

3. 40% of salary
HRA EXEMPTION IS GUIDED BY SEC 10(13A ) RULE 2A .
T
Agreed


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