22 June 2013
Assessee lives in a rented premises for only 6 months during the FY HRA received - 12900 for 10 months (due to leave taken without pay during the year) rent paid - 6000 for 6 months basic salary - 25000 for 10 months....
HRA exemption: lowest of 1. 40% of (25000*10) 2. 12900*10 3. (6000*6)-(10% of (25000*10))
or
1. 40% of (25000*10) 2. 12900*10 3. (6000*6)-(10% of (25000*6))
In first case exemption comes to Rs. 11000 and in second case it comes to Rs. 21000.
22 June 2013
Since the employee stayed rented house for 6 months only. so actual HRA calculation need to be done on 6 months only. all other months what ever HRA received is fully taxable. so no need to calculate for 10 months basic salary
HRA exemption least of the following
A.(Rs.25000x6)x 40% B.Rs.12900x 6 B (Rs.6000-10% of Rs.25000)x6 months
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