Hra limit

This query is : Resolved

Robin verma (Querist)
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15 November 2016 If an employee drawing monthly salary of Rs.30000 from a private limited company how much can be given as HOUSE RENT ALLOWANCE. Is there any limit on HRA ??

Please help.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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15 November 2016 Normally 40% of Basic and DA will be considered as HRA , Same will be allowed in Income Tax

Robin verma

Robin verma (Querist)
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01 December 2016 CAN THE BASIC SALARY BE RS 20000 IN THIS CASE...ANY PROB AS PER INCOME TAX ACT

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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01 December 2016 Basic salary should be minimum 50% of gross salary, HRA 40% of Basic .

Robin verma

Robin verma (Querist)
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01 December 2016 Suppose Basic 20400 HRA 8000 Transport Allowance 1600 Rent Paid Rs 10040. Now assessee is liable to pay 0 tax even after earning Rs 360000 pa. Is there any prob in this

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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01 December 2016 Yes, HRA you get Maximum Rs.8000/- P.M so CA Rs.1600/- PT Rs.200/- Rs.9800/- PM if work out it exceeds Rs.100000/- so your taxable limit is within taxable limit, so Taxable liability is Nil.