Reg HRA deduction

  The exemption of HRA will be available up to the the minimum of the following three options:

1. Actual house rent allowance received from your employer
2. Actual house rent paid by you minus 10% of your basic salary
3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro

This minimum of above is  allowed as income tax exemption on house rent allowance.

As you are living metro cities you have to calculate 50% of your husband's basic salary.

Meaning of Salary for calculation the exemption of HRA

• Salary means (Basic + D.A + Commission based on fixed percentage on turnover).
• Salary is to be taken on due basis in respect of the period during which the period accommodation is occupied by the employee in the previous year.

Thanks for your reply.But he was not earning for 3 months. Can i still take 50% of basic of old company or new company or should i leave those 3 months and take only 9 months? We were paying rent in those 3 months.Please guide me

Originally posted by : jayanthi
	Thanks for your reply.But he was not earning for 3 months. Can i still take 50% of basic of old company or new company or should i leave those 3 months and take only 9 months? We were paying rent in those 3 months.Please guide me

 Apply the formula mentioned by Vishnupriya on monthly basis for the period of Job. u might have paid rent for 3 months when your Husband was not working, but one of the condition is HRA received. As during those three months of ur husband has not received any HRA from any Company, calculation of lower of Above Three Criteria (mentioned by Vishnupriya) will be zero. So u will get benefit of 9 months only.

Thank You. Calculated and filed returns. Thanks to all for your assistance

I am in Hyderabad and my HRA is 60 % of my basic salary.Am stating in own house.How much exemption can I claim ?