zankhana Trivedi (Company Secretary) (462 Points)
17 April 2012Dear All,
Can anyone guide me for HRA exemption.
Rent Paid: Rs. 8000/- Pm
Actual HRA received Rs. 6240/- pm
Basic Salary: Rs. 15600/- pm
DA: NIL
Rent has commenced from 01/06/2011. Can anyone guide me for HRA exemption for the FY 2011-2012.
Basic Salry increased from Rs. 15600/- to Rs. 18600/- from 01/01/2012.
Thanks & Regards
CA Saiyum khan
(Practicing CA)
(690 Points)
Replied 17 April 2012
Exemptions will be minimum of following
Actual HRA
Rent Paid in Excess of 10% of Basic
40% of Basic
In Your case the computation would be as follows; It is assumed that HRA remain unchanged.
| Particulars | Apr-May | Jun-DEC | Jan-Mar | Total |
| Basic | 31200 | 109200 | 55800 | 196200 |
| 40% of Basic | 12480 | 43680 | 22320 | 78480 |
| 10% of Basic | 3120 | 10920 | 5580 | 19620 |
| HRA | 12480 | 43680 | 18720 | 74880 |
| Rent Paid | 0 | 56000 | 24000 | 80000 |
| Rent Paid in Excess of 10% | 0 | 45080 | 18420 | 63500 |
| HRA Exempt | 0 | 43680 | 18420 | 62100 |
zankhana Trivedi
(Company Secretary)
(462 Points)
Replied 17 April 2012
Thanks Mr. Khan.
Can u please let me know which forms part of Salary for calculation of 40% & 10% of Salary. Is it Basic+DA or any other also forms part of it?
Thanks & Regards
. HRA received 62400 Less: exemption as per 10(13A)(whichever is least) i. Total HRA recd.. 6240*10=62400 -----------A Hra paid excess of 10% of salary.. ii. salary.. 15600*7= 109200 18600*3 = 55800 Total salary = 165000 10% of salary = 16500 HRA = 62400 HRA excess of 10% salary = 45900 -------B iii. 50% of basic salary = 165000*50% = 82500-----------------C -45900 What is the exemption available under Income tax act in relation to HRA?
A part of HRA is exempted u/s 10(13A) of Income Tax Act, 1961. The amount of exemption is taken to be the least of following three amounts: Amount of HRA received. Excess of Rent paid over 10% of Salary 50% of Salary, in case the employee resides in metro cities. otherwise 40% of salary
What is meant by Salary for the purpose of HRA? Salary means Basic Salary + Dearness Allowance + Commission which is based on turnover acheived.
This is what I calculated:
-----------
Taxable HRA 16500
Kindly correct, if I am wrong...
.I still have doubt, whether Total HRA recd is 62400(for 10 months) or 74880( for 12 months)... please clarify my doubt may be, this one is right!! HRA received 6240*12 74880 Less: exemption as per 10(13A)(whichever is least) i. Total HRA recd.. 6240*12=74880 -----------A ii. Hra paid excess of 10% of salary.. salary.. 15600*7= 109200 18600*3 = 55800 Total salary = 165000 10% of salary = 16500 Rent paid 8000*10 = 80000 Rent excess of 10% salary = 63500 -------B iii. 50% of basic salary = 165000*50% = 82500-----------------C -63500
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Taxable HRA 11380
DIBYENDU
(SERVICE)
(266 Points)
Replied 17 April 2012
Calcuation of Salary the following component will came
1. Basic Salary
2. D.A. (If it is provided within the terms of Employment)
3. Commission (on a fixed persentage of Ternover)
DIBYENDU
(SERVICE)
(266 Points)
Replied 17 April 2012
Calculation of HRA
1. Basic Salary = Rs. 15600 X 9 manths (i.e. from 01.04.2011 to 31.12.2011) & Rs. 18600 X 3 manths (i.e. from 01.01.2012 to 31.03.2012) =Rs. 1,96,200.00
2. HRA compnent =Rs.6240 X 12 manths (Assume HRA unchanged on the Salary Increment)= Rs. 74880.00
3.Rent Paid =8000 pm X 10 manths (i.e. from 01.06.2011 to 31.03.2012)= Rs. 80000.00
least of the Sume will be deduct u/s 10(13A) rule 2A
1. Actual HRA Receive = Rs. 74880.00 (Rs. 6240.00 X 12 manths)
2.Rent paid over 10% of Salary =Rs. 80000- (10% of Rs. 196200) =Rs. 60380.00
3. 50% of Rs. 196200.00 =Rs. 98100.00 (reside metro) or 40% of Rs. 196200.00=78480.00 (reside non-metro)
least of above sum Rs. 60380.00 will be deduct (i.e. Rs. 5031.00 pm)
manoj
(acct)
(26 Points)
Replied 18 April 2012
What is right amount of HRA among all the replies received here?
rakshita
(Ca final student)
(84 Points)
Replied 18 April 2012
rakshita
(Ca final student)
(84 Points)
Replied 18 April 2012
hi harini,
the exemption will be for 10 months only since he did not recieve any HRA during first two months therefore no HRA no exemption.
secondly, the salary to be calculated will be in different sections ie. from june to dec and then jan to march because there is an increment from jan. so salary would be calculated separately for calculating 10% and 50% of salary from jun to dec and jan to march.
total exemption is 62100.
rakshita
(Ca final student)
(84 Points)
Replied 18 April 2012
sorry its HRA recieved for whole year but since rent is paid from june it means for first two months rent paid is zero hence minimum limit of exemption will b zero as in second condition is rent paid - 10% of salary. thus no exemption for first two months.
zankhana Trivedi
(Company Secretary)
(462 Points)
Replied 21 April 2012
SHERIN MATHEW
(FM)
(53 Points)
Replied 30 December 2017
please go through the link for further clarifications:-
PF & ESI Course - Labour Code 2019 Along with Examples and Case Studies
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