Ashim kr Ray (social service) (1691 Points)
02 March 2016
KPPM and Associates
(Chartered Accountant)
(62 Points)
Replied 02 March 2016
Hello Ashim,
The HRA deduction is limited to least of :
Hope this was of help. Kindly provide the Basic Salary amount and name of the City you stay in, if you want further help.
Ashim kr Ray
(social service)
(1691 Points)
Replied 02 March 2016
sir,
in line no 2 you said 10% of the basic salalry, whaereas
in third line you said 50% of basic salalry or 40% of basic salary.
so waht amount of basic salalry have to take into consideration.
KPPM and Associates
(Chartered Accountant)
(62 Points)
Replied 03 March 2016
In line no 2, it says "Actual Rent (less) 10% of the Basic salary", which means, 10% of the basic salary is deducted from actual rent (36,000/-) for calculating the deduction.
While in line 3, the 50/40% of the Basic salary itself is the allowable amount.
For example, if your Basic Salary were 3,00,000 per annum, and you live in a metro city:
Amount under Line 1 = 12000
Amount under Line 2 = 36000 - [ 300000*10% ] = 6000
Amount under Line 3 = 300000 * 50% = 150000
Least of the three (6,000) is allowable.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
