Income tax

This query is : Open

Raj Kumar G S (Querist)
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17 July 2012 Dear Sir,

My Salary Package is Rs. 300000/-
I am residing in Rent House
At what percentage my Rent allowance should i deduct on which basis, now I am paying 9000/- rent per month
please send the structure with all allowances deduction to avoid TDS & Income Tax

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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18 July 2012 HRA is exempt to the extent of LOWER of following:

(i) Actual HRA
(ii) Rent paid - 10% of salary
(iii) 40% or 50% of salary

50% for metros
40% for other than metros

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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18 July 2012 you can plan for other Exemption too
as

Transport Allowance (Exempt upto Rs.800/-)
Children education allowance (upto Rs.100 per child max upto 2 children)
Hostel Allowance (Rs.300/- p.m. max 2 children)

after that you can plan for HRA

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