Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

HRA exemption

H S Rajashree (MBA in Finance) (221 Points)

22 January 2008

can somebody elaborate of rule 2A with respect to HRA exemption and production of rent receipts.

examples would help

Rgds

Rajashree

Reply
Follow
Share

11 Replies

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 23 January 2008

Let us say the salary within the meaning assigned to it in clause (h) of rule 2 of Part A of Fourth schedule is Rs 50000. and the accommodation is in Mumbai. A) HRA given is 30000. B)The Rent actually paid for accommodation is Rs 40000. (Therefore rent paid in excess of one tenth of salary is Rs 35000) C)One half of salary is Rs 25000 The least of the above is Rs 25000 and that is what will be excluded from his total salary income of Rs 80000. (50000+30000).

Upgrade to CAclubindia Pro. Subscribe Now!

H S Rajashree (MBA in Finance) (221 Points)
Replied 23 January 2008

Thanks Is it true that an employee need not submit rent receipts if his rent is below 3000? If so, is there any specific mention of it anywhere in the rules/Act/reckoner? Rgds Rajashree

S.Srinivasaraghavan (Chief Financial Officer and Co) (11318 Points)
Replied 23 January 2008

All that is required is the onus is on the part of the assessee to prove that he has indeed paid the rent with reference to which he claims exemption. The proof can be any of these- Paid out cheque through a Bank account, receipt from house owner, lease deed, letter from owneretc..

(Guest)

I have details from HRA calculation in income tax act.

(Guest)

I have HRA Rs 5000 / Month , Rent actually paid is Rs 5000 / Month . Salary is Rs 45000/ Month . I need to know the calaculations for HRA exemption ?

Upgrade to CAclubindia Pro. Subscribe Now!

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 11 March 2008

Dear,This is in which city,what is basic salary

(Guest)

Hi, I have a doubt in my mind related to HRA exemption in case of company leased accommodation. I work with a IT company and my salary structure is as follows - basic - 21000, HRA - nill, LTA- 1250, total allowance - 20700, -- a total of 42950 per month. Now since I live in a company leased house in Delhi, no HRAis there. But if I will have house on personal lease then i will have hra - 12600 and total allowance will be - 18000 and total per month will be - 52850. Now my question is how my tax calculations will work in both cases--1) if i live in company leased house and 2) if i live in personal leased house . Supposing the rent amount of 10000 in both cases. which one is beneficial and by how much amount from tax saving perspective. A detailed tax calculation will help in understanding in both the cases. Assume for savings done for 1 lakh. Kindly reply... this will really be a great help. Kindly let me know if further details required. Regards, Rohit

(Guest)

hi, You may send the details in private to my mail id, if you think so. My email id is --- "kool_rohit_agg @ yahoo.com" Thanks so much in advance. Regards, Rohit

(Guest)

Please give me small information

I need HRA,CCA,CA,PPA,SA,EA and others how to caclulate on salaries total persentages Please give me

Prabhash Chandra Jha (TAX CONSULTANT) (48 Points)
Replied 17 August 2008

dear ramana

this is totally depended on the company h r to what is the policy of company for payament of salary. if you want what is exemption under i t act then please quote full problem