24 May 2014
One Employee our organisation paid rent of rs 240000/- p.a and His Annual package is around 12,00,000/- p.a. Can any tell me how he get full exemption for HRA ? Please provide bifurcation of salary structure also with example
24 May 2014
Assuming 20% of salary package – Rs. 2,40,000/- is HRA and the person lives in non-metro city. HRA exemption is Rs. 1,44,000/- Accordingly Taxable Income is Rs. 10,56,000/- If full HRA exemption of Rs. 2,40,000/- to be claimed, Rent of Rs. 3,36,000 (28,000 pm) to be atleast shown. Taxable Income in this case would be Rs. 9,60,000/-
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