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HRA IN INCOME TAX
Is HOUSE RENT ALLOWANCE is exempted from INCOME TAX? AND HOW?
Replies (1)
Least of following conditions is exempted from incme tax:
1. 40% of salary (50% of salary in case of metropolitian city)
2. HRA received
3. Excess of rent paid over 10% of salary
Here salary= basic+ dearness allowance for retirement benefits+ commission based on fixed percentage of turnover.
Least of three above is exempt from tax.
HRA taxable = Total HRA received- Exempt (calculated above)..
1. 40% of salary (50% of salary in case of metropolitian city)
2. HRA received
3. Excess of rent paid over 10% of salary
Here salary= basic+ dearness allowance for retirement benefits+ commission based on fixed percentage of turnover.
Least of three above is exempt from tax.
HRA taxable = Total HRA received- Exempt (calculated above)..
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