HRA Calculation

BINU.M.S (MCOM MBA ICWAI-Inter(Studying)) (197 Points)

16 January 2009

Dear All

Please Check this HRA Calculation

Mr.B's salary Structure

Basic-8000. HRA-4000.PF-780.Allowances-3000.Travel Allowance-1500

Total salary For a Month-17280/-

Now Please See my HRA Calculation

1,Mr.B lives in a non-metro city and he is a male

So First Calculation 40% of 8000=3200

2.HRA Received by Mr.B from employer=4000

3.Actual Rent Paid by Mr.B Rs.5000/-

So Excess of rent paid over 10% of salary=5000-800(10% of 8000)=4200

Now the least of three will be taken for HRA exemption.ie,Rs.3200/-

Now please see my calculation if I am wrong please tell me

And please let me know if the HRA exemption rules for oraganisations

with SEZ Status will be different or not.

Thanks In Advance

BINUMS

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4 Replies

PiyushAgrawal (Chartered acooutant in practice) (575 Points)
Replied 16 January 2009

Originally posted by :BINUMS
"	Dear All Please Check this HRA Calculation Mr.B's salary Structure Basic-8000. HRA-4000.PF-780.Allowances-3000.Travel Allowance-1500 Total salary For a Month-17280/- Now Please See my HRA Calculation 1,Mr.B lives in a non-metro city and he is a male So First Calculation 40% of 8000=3200 2.HRA Received by Mr.B from employer=4000 3.Actual Rent Paid by Mr.B Rs.5000/- So Excess of rent paid over 10% of salary=5000-800(10% of 8000)=4200 Now the least of three will be taken for HRA exemption.ie,Rs.3200/- Now please see my calculation if I am wrong please tell me And please let me know if the HRA exemption rules for oraganisations with SEZ Status will be different or not. Thanks In Advance BINUMS	"