Salary - HRA & RFA

Others 1367 views 4 replies

Hi all,

When an employee receives both HRA and RFA,and pays concessional rent to the employer for a part of a year and vacates the accommodation given by the employer and stays in a rented house for the remaining period. How to calculate HRA and RFA?? Thanks in Advance..

Replies (4)

Rent paid to Employer is concessional, so i think for HRA calculation concessional rent is not considered

HRA is an allowance where as RFA is a Perk. given to employee. As far as Rfa is considered, it is clear that Rfa is not full rfa, it is concessional. so rfa can be calculated proportionately for the number of months stayed by paying rent at concession to employer. the calculation for the same would be TAXABLE RFA WILL BE: specified rate as per the population on salary. where salary will be Basic,da if, allowance,bonus,commission,monetary benefits. LESS : Rent paid to employer = TAXABLE RFA AS PERK. coming to HRA, it must also be calculated proportionately on Salary received for the period the employee takes the Rented house. Hence taxable HRA Will be as below TAXABLE HRA U/S 10(13A) Actual HRA received LESS. least of below exempt u/s 10(13A) 1. Actual hra 2.Rent paid - 10% of salary 3.40% Or 50% of salary as the case may be where salary means basic,da if,commission if FOR THE PERIOD actually the employee took the rented house and also the rent must be for the moths actually paid... Any mistake in the answer is not intentional. please correct me if iam wrong
Basic, da if, implies what for defining salary for the purpose of calculating exempted hra

What is the current RFA rate.


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