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HRA Exemption

sandeep (service) (41 Points)

28 December 2007

Bal Sa: 121526

HRA : 72913

actual rent paid : 78000

I stay in Pune

Wht will be mu exemption

Pls advice

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CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 28 December 2007

Hi Sandeep Calculation of HRA exempt and taxable 1. If you are staying in any four Metro city 50% of your salary. Otherwise 40% of your salary. 2. HRA Actually Received by you for the period during which you occupied the house. 3. The excess of Rent paid over 10% of your salary. LEAST OF THE ABOVE THREE IS EXEMPT & REST IS TAXABLE. IN YOUR CASE (On the basis of above three rule) 1.72913 2.48610 ( 40% of 121526) 3.65847 (78000-12153) Therefore you will be get a exemption of Rs. 48610 p.a Thanks & Regards Amit Daga