05 April 2014
On Basic salary it can be 40% or 50%
Under income tax sec.10(13A)
Maximum exemption least of the below
1. Actual HRA 2. 40% of Salary (if metro 50% of salary) 2. Actual Rent less 10% of Salary
Salary means (Basic + D.A + Commission based on fixed percentage on turnover). Salary is to be taken on due basis in respect of the period during which the period accommodation is occupied by the employee in the previous year.
CAclubindia
