Hra

This query is : Resolved

Merchant (Querist)
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24 August 2013 Would like to know how can i give maximum benefit in HRA

For example:one of our employee details _
1.Monthly HR allowance : 6922 (40 % of basic)
2.employee is paying rent of 12000 pm
3.employee gross salary is 7.71 lac + 1 lac is bonus.

Pls note the above is per month details of an employee. Help me to know how much exepmtion can given to employee for this financial year.
Thank you.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 August 2013 HRA exemption in this case Rs.6922 which is actual HRA

HRA exemption under sec.10(13A) is

least of the below

1.Actual HRA -Rs.6922
2. Rent paid less 10% of basic salary= 12000-1731 = Rs. 10269
3. 40% of basic salary Rs. 6922

so lease is Rs.6922

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Merchant

Merchant (Querist)
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26 August 2013 Thanks Mr Krishnan

The third calculation is 40 % of basic or 40% of total eatrnings (gross salary)?.

Pls confirm monthly hra is 6922 so if i calculate for full year than it woould be 6922*12=83064. pls confirm if this correct ?

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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26 August 2013 yes. your calculation is correct