CA Surendra Prajapati (Deputy Manager (Finance)) (361 Points)
03 August 2010Respected Seniors,
I want to know what is the mean of word "salary" (what it includes) at the time of caculation of HRA like-
Least amount of the following-
1) Excess of Rent paid over 10% of Salary
2) 40% or 50% of salary
3) Actural HRA Received
Please give your priceless reply. Thank You in Advance....
Amit Sarawgi
(C.A. Final & Arical)
(101 Points)
Replied 03 August 2010
Hi Surendra,
Here salary means Salary as per "Gestetner Duplicate"
Salary Includes Basic Pay + Dearness Allowance (If as per Service condition) + Commission based on Turn over.
Least of the following is exempt
1 Actual HRA
2 Rent paid - 10% of Salary
3 40% or 50% of Salary
Here 50% for the employes lived at Any of these place
Mumbai, Culcatta, Chennai, Delhi
otherwise take 40% of Salary.
Harpreet
(* * * * * *)
(1670 Points)
Replied 03 August 2010
Salary includes Basic + DA+fixed commission on turnover of the company
for eg.
If a person get salary 240000/- per annuam and bifurcation of the same is basic 7000/- pm, hra 3500/- pm, DA 3000/- pm, transport allowance 800/- pm, special allowance 5700/- pm. he is paying rent 4500/- per month in metro city (like Delhi, Mumbai, Chennai) HRA Calculation is as given below:
1st Condition : Excess of Rent paid over 10% of Salary
3500-2000=1500/-
IInd Condition : 40% or 50% of salary
10000/-
IIIrd Condition: Actural HRA Received
3500/-
So least of the above three condition is Rs. 1500/- per month
hence you can get exemption for Rs. 18000/- per annum
naveen krishna sharma
(teaching)
(25 Points)
Replied 03 August 2010
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8310 Points)
Replied 03 August 2010
| Originally posted by : Amit Sarawgi | ||
 |
Hi Surendra, Here salary means Salary as per "Gestetner Duplicate" Salary Includes Basic Pay + Dearness Allowance (If as per Service condition) + Commission based on Turn over. Least of the following is exempt 1 Actual HRA 2 Rent paid - 10% of Salary 3 40% or 50% of Salary Here 50% for the employes lived at Any of these place Mumbai, Culcatta, Chennai, Delhi otherwise take 40% of Salary. |
 |
agree.
CA Surendra Prajapati
(Deputy Manager (Finance))
(361 Points)
Replied 03 August 2010
Thank you very much to all of you for providing a priceless information to me...
reallly i was very confused regarding this... Thanks once again....
CA Surendra Prajapati
(Deputy Manager (Finance))
(361 Points)
Replied 03 August 2010
| Originally posted by : Harpreet | ||
|
|
Salary includes Basic + DA+fixed commission on turnover of the company for eg. If a person get salary 240000/- per annuam and bifurcation of the same is basic 7000/- pm, hra 3500/- pm, DA 3000/- pm, transport allowance 800/- pm, special allowance 5700/- pm. he is paying rent 4500/- per month in metro city (like Delhi, Mumbai, Chennai) HRA Calculation is as given below: 1st Condition : Excess of Rent paid over 10% of Salary 3500-2000=1500/- IInd Condition : 40% or 50% of salary 10000/- IIIrd Condition: Actural HRA Received 3500/- So least of the above three condition is Rs. 1500/- per month hence you can get exemption for Rs. 18000/- per annum |
|
THANK YOU VERY MUCH
Amar Kumar
(CA Final , Intern )
(1095 Points)
Replied 03 August 2010
Salary Includes Basic Pay + Dearness Allowance (If as per Service condition) + Commission based on Turn over.
This is correct. . . .I too studied HRA ,salary today :)
Gaurav Rathor
(Employee)
(33 Points)
Replied 04 August 2010
hi Surendra, commission is added to salary ONLY IF it is paid as a percentage of Turnover.
If it is fixed amount, it does not fall within the definition of salary for the purpose of HRA.
rest all, mentioned above is correct.
akash gupta
(JOB)
(75 Points)
Replied 12 August 2010
salary Includes Basic Pay + Dearness Allowance (If as per Service condition) + Commission based on Turn over.
Least of the following is exempt
1 Actual HRA
2 Rent paid - 10% of Salary
3 40% or 50% of Salary
Here 50% for the employes lived at Any of these place
Mumbai, Culcatta, Chennai, Delhi
otherwise take 40% of Salary.
CA Surendra Prajapati
(Deputy Manager (Finance))
(361 Points)
Replied 12 August 2010
thank u sir,
sir, if one has his salary Rs.5 lac and it includes basic, DA, Hra, medical, travel Allwnce and any other allowance also
then in this case we have to calculate 10% of salary on Rs.5 lac or on any other amount plz tell me...
Thank yu in advance
| Originally posted by : akash gupta | ||
|
|
salary Includes Basic Pay + Dearness Allowance (If as per Service condition) + Commission based on Turn over. Least of the following is exempt 1 Actual HRA 2 Rent paid - 10% of Salary 3 40% or 50% of Salary Here 50% for the employes lived at Any of these place Mumbai, Culcatta, Chennai, Delhi otherwise take 40% of Salary. |
|
ajithasai
(m.ajitha)
(95 Points)
Replied 13 August 2010
hi
Are you eligible for deduction under HRA.We have designed and prepared this article to make you understand how you can claim tax deduction for HRA.
thank you
regards,
phe9oxis,
ajithasai
(m.ajitha)
(95 Points)
Replied 13 August 2010
hi
Are you eligible for deduction under HRA. We have designed and prepared this article to make you understand how you can claim tax deduction for HRA.
thanks
regards,
phe9oxis,
CA Surendra Prajapati
(Deputy Manager (Finance))
(361 Points)
Replied 13 August 2010
| Originally posted by : ajithasai | ||
|
|
hi Are you eligible for deduction under HRA. We have designed and prepared this article to make you understand how you can claim tax deduction for HRA. thanks regards, phe9oxis, htp://www.guidebuddha.com. |
|
Thank you so much...
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
