27 May 2008
HI, ONE OF MY FIREND HE IS PAYING 5000/- P.M. AS RENT AND THE COMPANY PAYING HIM HRA AS RS.3200/- .HIS BASIC + DA COMES TO RS.7375/- .HE IS IN DELHI.
27 May 2008
the allowable deduction is lower of following 1)actual Hra Recd. i.e Rs. 3200/- 2)50% of 7375/- i.e 3687/- 3)actual rent paid over 10% of 7375/- i.e 4263. the lowest of above i.e 3200/- is allowed as deduction
27 May 2008
UR total HRA recieved for the year would be 3200*12=38200...From this least of following 3 would be deducted: 1)Actual HRA 38200 2)Rent paid-10% of Basic+da 51150 3)50% of Basic +da 44250
So (1) being least would be deducted from HRA..Since both HRA recieved & exempt are same...whole HRA recieved is exempt...
CAclubindia
