HRA calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2010 Basic-7275,HRA earned-2910,Medi All-750, Conv all-728,Spl all-7190, LTA Reim-750, Incentive monthly-417,Attire all-500. TOTAL earning 20520 And Actual house rent paid Rs.5,000. Please explain
1.calculation of HRA.
2.Salary includes what?

CA Sanat Pyne

CA Sanat Pyne (Expert)
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13 August 2010 V. HOUSE RENT ALLOWANCE
Exemption allowed shall be
Lower of:-
 HRA Received
 Rent Paid - (10% of Retirement Benefits Salary)
 50% of Retirement Benefits Salary Delhi/Mumbai/Calcutta/Chennai
40% of Retirement Benefits Salary Any Other State

“Retirement Benefits Salary” means
a) Basic Pay
b) DA (If it forms part of Salary)
c) Commission of Fixed % on SALES

in your case salary will be 7275.

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2010 Thanks for the reply
In the said case
1.how much amount i can take exemtion in IT
2.and under which section (i.e.in ITR)

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CA Sanat Pyne

CA Sanat Pyne (Expert)
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13 August 2010 section 10(13A)
your annual deduction will be 34920/
please calculate as per the formulla given above.