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tax (HRA)

kapil abhishek (student) (293 Points)

23 May 2010

R is employed with x ltd on salary of Rs. 5000 p.m.,HE is alsoentitled DA. @ 100% of basic salary,50% iof which is includedin salary for as per terms of employment. the company gives him HRA of rs 3000 per month which was increased to rs 3500 per month w.e.f 1/1/2009.he also got increment of rs500 per month in his basic salary w.e.f 1/2/2009. rent paid by him during the previous year 2008-09 is as under:

April and may , 2008 _______nil, satyed with parents

June to octuber,2008___________rs 3000 per month ( house in ghaziabad)

November to march_____rs 4000 per month (house in delhi)

compute his gross salary for A.Y.2009-10

plaese solve it

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8 Replies

Anuraag Sharma (Sr Executive Finance) (845 Points)
Replied 23 May 2010

u hv mentioned here that

the company gives him HRA of rs 3000 per month which was increased to rs 3000 per month w.e.f 1/1/2009.

it seems that the question reads as under:

HRA Received(upto 31/12/2008) = Rs. 3,000 p.m.

HRA Received(upto 31/03/2009) = Rs. 6,000 p.m.

now plz refer to the sheet attched

Attached File : 3 hra computation.xls downloaded: 268 times

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kapil abhishek (student) (293 Points)
Replied 23 May 2010

sorry bro, its Rs.3500 instead of Rs.3000

i have to modify the question.......

kapil abhishek (student) (293 Points)
Replied 23 May 2010

dear friends now question is modified

please solve it

Ashish M (Chartered Accountant) (2731 Points)
Replied 23 May 2010

1) April - May: Salary [5000+2500] x 2 = 15000/-

No HRA exemption as no rent paid during the year.

2) June - Oct: Salary [5000+2500] x 5 = 37500

HRA exemption is lower of;

a) 3000 x 5 = 15000

b) 3000 x 5 - 10% x 37500 = 11250

c) 50% of 37500 = 18750

3) Nov - Dec: Salary [5000+2500] x 2 = 15000

HRA exemption is lower of;

a) 3000 x 2 = 6000

b) 4000 x 2 - 10% x 15000 = 6500

c) 50% of 15000 = 7500

4) Jan: Salary [5000+25000 = 7500

HRA exemption is lower of;

a) 3500

b) 4000 - 10% x 7500 = 3250

c) 50% of 7500 = 3750

5) Feb - march: Salary [5500+2750] x 2 = 16500

HRA exemption is lower of;

a) 3500 x 2 = 7500

b) 4000 x 2 - 10% x 16500 = 6350

c) 50% of 16500 = 8250/-

Total HRA exemption for the year.26850/-

Computation of Gross salary:

Basic salary {(5000 x 10) + (5500 x 2)] 61000

DA {100 % of basic} 61000

HRA : {(3000x9) + (3500x3)} : 37500

Less: exmpt : 26850 10650

Gross salary 132650

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kapil abhishek (student) (293 Points)
Replied 23 May 2010

thanks ashish ur answer is correct

thanx for solving this question

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Amit Poddar (Bcom; CA; Officer Accounts) (250 Points)
Replied 24 May 2010

Dear Ashish ur answer is correct but u will not get full marks since u have taken 50% in june to oct HRA exemption calculation

50% of the salary (basic + DA) if located in Metros like Mumbai, Delhi, Kolkata or Chennai and 40% of salary if located elsewhere.

kapil abhishek (student) (293 Points)
Replied 24 May 2010

agree with amit

Ashish M (Chartered Accountant) (2731 Points)
Replied 25 May 2010

Originally posted by : Amit Poddar
	Dear Ashish ur answer is correct but u will not get full marks since u have taken 50% in june to oct HRA exemption calculation 50% of the salary (basic + DA) if located in Metros like Mumbai, Delhi, Kolkata or Chennai and 40% of salary if located elsewhere.