CA Sanjay Baheti (PROPRIETOR) (1155 Points)
25 June 2011Please compute taxable & exempt portion of HRA in following case as under:-
i) HRA Rs.2500/- per month getting from employer.
ii) Basic Salary Rs. 40000/- per Month.
iii) The employee is also paying Rent @ 2500/- per Month to lanlord.
iv) He is living in Bhilwara (Rajasthan).
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 25 June 2011
as per section 10(13A) read with rule 2A ,least of following three will be exempted
House Rent allowance (HRA) received.
50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case.
Rent paid in excess of 10 % of salary.
HENCE ACTUAL HRA RECEIVED= 2500*12= 30000
40% OF SALARY= 480000*40%= 196000
RENT PAID- 10% OF SALARY= 30000- 480000*10%=O (CAN NOT BE NEGATIVE)
HENCE NO EXEMPTION IN THIS CASE
Aparna Raja K.C
(Student)
(520 Points)
Replied 25 June 2011
Rent Received = 2500*12 = 30000
40% of salary = 480000*40% = 196000
Excess of Rent paid over 10% of salary = 0
Considering the least of above
No exemption :)
CA Rakesh Garg
(Asst. MGR Taxation)
(510 Points)
Replied 26 June 2011
| Originally posted by : future ca | ||
 |
as per section 10(13A) read with rule 2A ,least of following three will be exempted House Rent allowance (HRA) received. 50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case. Rent paid in excess of 10 % of salary. HENCE ACTUAL HRA RECEIVED= 2500*12= 30000 40% OF SALARY= 480000*40%= 196000 RENT PAID- 10% OF SALARY= 30000- 480000*10%=O (CAN NOT BE NEGATIVE) HENCE NO EXEMPTION IN THIS CASE |
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@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 26 June 2011
agree with all the CCI friends who answered....
Paras
(Mcom,CA Final)
(122 Points)
Replied 26 June 2011
Sorry to ask bahetiji . but are you working CA?
CHANDAN singh mehra
(C.A. )
(26 Points)
Replied 20 August 2011
(i) HRA received
(ii) Rent Paid-10% of Salary
(iii) 50% of salary in metro city like, mumbai, delhi, calcutta, channi &
40% of salary in other city
LEAST OF ABOVE THREE IS EXEMPT
AND TAXABLE=HRA RECEIVED-EXEMPT
Note- salary means- Basic Pay+D.A.+Commission+Taxable Salary income+pension(if taxable)
john
(LEARNER)
(549 Points)
Replied 20 August 2011
HI Mr. Paras
it seems you are new, such questions are asked so that a learner who is not aware can learn from this platform.
Sorry to say but please change the way you think.
you can also ask a question which you already know with the intention that common people can benefit.
Thank you.
CAclubindia
