House rent allowance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2014 I WANT TO ASK RELATED TO HRA EXEMPTION THAT
1) ACTUAL HRA RECEIVED
2)10% WILL BE CALCULATED WHETHER IN BASIC OR BASIC+DA
3)50* OR 40%WILL BE CALCULATED WHETHER IN BASIC OR BASIC+DA

MY QUESTION IS IN NO-2 AND NO-3
IN THESE THREE WHAT WILL BE TAKEN FOR HRA EXEMPTION

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 January 2014 DA can be added in 2) and 3) if it is considered for calculating the retirement benefit or if the terms of employment so provide.
.
Least of the three or minimum of the three will be treated as amount of exempt HRA.