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please calculate my HRA Excemption with explanation

Ajay s (Accounts Officer) (243 Points)

13 November 2009

My Basic +da per month is 9470

My HRA per month is 4735

Actual Rent paying frm dec 09 to mar 10 is 20,000

Please calculate my HRA excemption

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10 Replies

ashish gupta ( student) (1922 Points)
Replied 13 November 2009

Least of the following will bw exempt

1 Actual HRA received - 4735*4 = 18940

2 Rent paid - 10% of salary (20000-3788)= 16212

3 40% of salary (9470*4)*40% = 15152

So 15152 is the least and u will get exemptio of this amount.

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BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 13 November 2009

40%-non metro

50%-metro cities

Ajay s (Accounts Officer) (243 Points)
Replied 13 November 2009

Dear Asish

Thanks for your reply , but am in metro so i think its 50%

another thing actual hra received is not 4735*4 its 4735*12

ashish gupta ( student) (1922 Points)
Replied 13 November 2009

ok if u r in metro than apply 50% and it does not matter that u receive HRA for whole year of u paid rrent for only 4 months b coz then rent paid for that period will be zero and no exemption of that amount and HRA received for 8 months will bw included in the salary

Ajay s (Accounts Officer) (243 Points)
Replied 13 November 2009

thanks ashis can u explain about medical re imbursement /allowance

whether its taxable ?

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Jobin Mathews (Student) (42 Points)
Replied 13 November 2009

Medical allowance is taxable, re-imbursement is exempt upto Rs.15000/-.

ashish gupta ( student) (1922 Points)
Replied 14 November 2009

Ya , jobin is right

Ajay s (Accounts Officer) (243 Points)
Replied 14 November 2009

thanks , anyone can explain conveyance allowance & transportation allowance and its excemption in Income tax

ashish gupta ( student) (1922 Points)
Replied 14 November 2009

transportation allowance for coming to office from house is exempt subject to maximum of Rs.800 p.m and conveyance allowance for doing office work or duty is exempt to the extent actually spent on performing the duty