24 January 2010
Dear Sir I shall be highly obliged for your reply to my query about HRA. My total annual salary is 7 lakh. To claim HRA exemption, how much House Rent Receipt will be required? I have received 143000 HRA. Will I require to submit House Rent Receipt of Rs. 18000 p.m. for full exemption of HRA? Best Regards
24 January 2010
HRA received exemption is available for minimum of these: 1. equal to 50% of salary (if house is situated at Bombay, Calcutta, Delhi or Madras) otherwise 40% of salary 2. HRA received 3. excess of rent paid over 10% of salary
Here salary means basic salary + dearness allowance + commission based on fixed percentage of turnover achieved as per terms of contract of employment.
so, your total salary is not relavent. calculate the amount on the basis of these conditions and submit rent receipt
29 January 2010
u/s 10(13A) of the Income Tax Act, 1961 read with rule 2A, least of the following three will be exempted: 1. HRA actually received 2. Rent paid exceeding 10 % of salary 3. Upto 50 % of salary in case of Metro cities and Upto 40 % of Salary in case of other cities
Here, Salary means Basic Salary, DA (if given under the terms of employment i.e. it enters for retirement benefits), Commision based on fixed percentage of turnover.
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