Hra deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2012 Basic 106,851.00
HRA Received 14,280.00
Rent Paid 60,000.00
What will be my exemption? Currently living in Kolhapur Maharashtra..

Amol S Joglekar

Amol S Joglekar (Expert)
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13 November 2012 14280 will be your exemption. (Least of all)

CA SAYANTAN BASU

CA SAYANTAN BASU (Expert)
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14 November 2012 DEAR SIR ,

WHEN YOU ARE CALCULATING HRA , THERE IS 1 CONDITIONS :

1. WHETHER YOU ARE STAYING IN METRO CITY OR NOT

SO IF THE RENTED HOUSE IS METRO CITY : THE LEAST OF THE FOLLOWING IS TAX FREE
a) 50% of salary (basic + da)
b) actual HRA received
c) rent paid - 10% of the salary .

SO IF THE RENTED HOUSE IS not in METRO CITY :The least of the following is tax free

a) 40% of salary (basic + da)
b) actual HRA received
c) rent paid -10% of the salary

So in this case ,

if the rent house is in metro city then -----

A. 50% of RS 106851 = RS 53425
B .HRA RECEIVED --- RS 14280.
C. 60000-10% OF 106851 =60000- 10685=49315.

SO THE LEAST OF THE FOLLOWING IS RS 14280 . SO FULL YOUR HRA IS TAX FREE .....
IF IN THE NON METRO CITY :

A. 40% OF RS 106851 = 42451
B B .HRA RECEIVED --- RS 14280.
C. 60000-10% OF 106851 =60000- 10685=49315.

TAXFREE HRA : RS 14280.

SO IN BOTH THE CASES HRA AMOUNT IS EXEMPTED .

HOPE YOUR QUERY IS RESOLVED ...........

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Amol S Joglekar

Amol S Joglekar (Expert)
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20 November 2012 So in nutshell, 14280 is the CRUX in either case.