What amount of hra should be calculated?

Hello Ashim,

The HRA deduction is limited to least of :

• The amount received as the HRA from the employer. = 12,000
• Actual rent paid (less) 10% of the basic salary. [ 36000 - 10% (Basic Salary) ]
• 50% of the basic salary if staying in a metro city and 40% in a non-metro city.

 Hope this was of help. Kindly provide the Basic Salary amount and name of the City you stay in, if you want further help.

sir,

 in line no 2 you said 10% of the basic salalry, whaereas

in third line you said 50% of basic salalry or 40% of basic salary.

so waht amount of basic salalry have to take into consideration.

In line no 2, it says "Actual Rent (less) 10% of the Basic salary", which means, 10% of the basic salary is deducted from actual rent (36,000/-) for calculating the deduction.

While in line 3, the 50/40% of the Basic salary itself is the allowable amount.

For example, if your Basic Salary were 3,00,000 per annum, and you live in a metro city:

Amount under Line 1 = 12000
Amount under Line 2 = 36000 - [ 300000*10% ] = 6000
Amount under Line 3 =  300000 * 50% = 150000

Least of the three (6,000) is allowable.