04 February 2009
Please clarify. For the purpose of Calculating HRA exemption out of three considerations , for an employee living in rented apartment at Bangalore, 50% of the Basic should be considered or 40%. Since Bangalore is a Metro City.
04 February 2009
Hi, Since Income Tax Act has not been updated as regards the entry of Bangalore as a Metro city in HRA related section, it is not possible to take 50%.
CAclubindia
