Hey its really not about HRA and its treatment but its something that i have learnt by just studying in my own way and may be you can also get same like things!!!!!!!!!!!
here is what i got !!
The provision of HRA are:
1. Amout Recd.
2.Rent-10% of salary
3. 40/50% of salary>>>>>>>>>>>>
As far as i know when i have been for coaching in my PE2 & Final for Taxes what i have learnt for HRA is the computation in above manner but today when i myself was writing the notes i just had an another look @ it.............
The 2nd provision is rent - 10% of salary.......... we calculate and put it up thats it.....................
but i will write in such a way that i dont wanna ever forget the concept for the rest of my life :
If your rent is 10% or less than 10% of your salary you will not get any exemption for HRA.
i.e the govt assumes that 10% of your salary can go for your House rent and so it does not require any compensation.
So i have never come accros such a thing and i am really not sure that it is correct!!!!!!!!!
I want you to have a look @ it and let me know>>>>>>>>>>>>>>>>>>
thank you!!
CAclubindia
