09 March 2011
How could HRA be best utilized if a person is living in his own house, does not pay any rent and receives a good amount as HRA from his company. In the given case, does the HRA become fully taxable at 30%? Is there any way that this amount can survive higher tax rate? Request you to kindly throw light on the subject. Thanks.
09 March 2011
It is not necessary that ur HRA will be taxable at 30%. While calculating your taxable income the full amount of HRA will be included in your Income from salary. Now the taxability rate depends upon your total income i.e. which slab it comes in. As you are a woman assessee the slab rate for you is 1.9L/5L/8L
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