If an employee worked in an organisation from April 08 to Aug 08 for a salary with HRA. And that employee worked in another organisation from Sept 08 to March 09 for a basic total slary without any HRA. Now my question is whether that employee will get HRA exemption or 80GG deduction ? Or he will get the both on proportionate basis? If he left 1st Company in the middle of the month then what will be the treatment? Will it be changed ?
Hints points:
| 1st Company | 2nd Company | |
| Monthly | April 08 - Aug 08 | Sept 08 - Mar 09 |
| Months | 5 | 7 |
| Basic | 16000 | 25000 |
| HRA | 5000 | |
| Rent | 5000 | 5000 |
Hints answer:
| Exemption u/s 10(13A) Rule 2A | ||
| Total HRA | 25000 | 0 |
| 50% of Basic | 40000 | 87500 |
| Rent Paid - 10% of Salary | 17000 | 17500 |
| HRA exemption u/s 10(13A) | 17000 | 0 |
| Rs 2000.00 per month | 0 | 14000 |
| 25% of total income | 0 | 43750 |
| Rent Paid - 10% of Salary | 0 | 17500 |
| Deduction u/s 80GG - Minimum | 0 | 14000 |
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