How much deduction on hra

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2018 Case1: salary earned(Basic+DA) Rs 850000 p.a

HRA received 98000 p.a
staying in hyderabad.

Paying rent is Rs 25000 pm * 12=300000 p.a
Can I show such Higher rent in the return.
What i need to produce in such case.Please clarify.Thank you

ALKESH T MEHTA

ALKESH T MEHTA (Expert)
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13 June 2018 You need ton produce rent receipt.
1.Actual Rent i.e.Rs.25000/-p.m.*12=Rs.300000/-p.a.
2.40% of salary i.e.Rs.340000
3.Excess of Rent paid over 10% of salary i.e.Rs.300000/--Rs.85000/-=Rs.215000/-
Minimum of above i.e.Rs.215000/- is exempted & Rs.85000/- is taxable H.R.A.
In return you will be required to show Rs.85000/-as taxable allowane.

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2018 Sir
HRA actually Received is Rs 98000
I didn't understand how Rs 85000 will be taxable allowance.
please clarify

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ALKESH T MEHTA

ALKESH T MEHTA (Expert)
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14 June 2018 In my previous reply,I replace the word Actual H.R.A. received instead of actual rent which is correct.
1.Rs.98000/-*12= Rs.1176000/-
2.Rs.340000/-
3.Rs.85000/-is actual rent paid by you reduced by 10% of salary I.e.10%of Rs.850000/-

2.340000/-

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2018 Case1: salary earned(Basic+DA) Rs 850000 p.a
HRA received 98000 p.a staying in hyderabad.
Paying rent is Rs 25000 pm * 12=300000 p.a
so as you said
1.Actual HRA Received 98000
2.40% of salary (850000*40%) 340000
3.Excess Rent paid over 10% salary 215000
300000-10%(850000)

Hence Lower of the above i.e 98000 will be allowed as deduction is it correct sir.
Is Rent Receipt enough or any other proofs required like agreement etc.because amount of rent is Rs 300000 p.a