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How to calculate HRA Exempton ? Please explain with example.
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To avail HRA exemption you must follow the rule as noted
1.Actual HRA Received
2.Excess Rent paid over 10% of salary
3.40% of salary
The least of the three will be allowed as exemption.
Note: to avail HRA exemption you must pay rent to the house
you are residing.You cant get exemption if you are residing
in your own house or residing in a house for which you need
not to pay any rent.More over if payment of rent is less
than 10% of salary you wont get any exemption.
To know more about Taxation and Practical accountancy pl
visit once my favourite regular visiting site
www.therealaccountants.com. this is the only website
dealing exclusively with taxation and accountancy
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