How anyone calculate HRA exemption from taxable salary for
Exam. HRA is 12000 and rent paid is 11500 and total salary
is 50000 thousand???????? plz. clear with example!!
Answer Posted / pardeep
According to section 10 (13A) of Income Tax Act, 1961 read
with rule 2A of Income Tax Rules, least of following three
is exempt from tax:
1. Actual HRA received
2. Rent paid in excess of 10% of salary (Basic + DA)
3. 40% of salary (50% if residing in a metro i.e., New
Delhi, Kolkata, Chennai or Mumbai)
Salary for the above purpose means BASIC + DA. However,
private sector organizations, usually, doesn’t provide DA
to employees.
Let’s take an example. Suppose that you’re residing in
Mumbai and paying a rent of Rs 11500p.m. and that your
salary package comprises the following:
Basic — Rs. 50,000 p.m.
DA — Nil
HRA — Rs. 20,000 p.m. (40% of basic)
Now, the exempted amount of HRA will be least of the
following three figures:
1. HRA received i.e., Rs. 12000
2. Rent above 10% of basic i.e., Rs. 6500 (Rs. 11500– Rs.
5,000)
3. 50% of basic i.e., Rs. 25,000
The least of the three is Rs 6500; therefore, in this
particular case you’re entitled for HRA tax exemption of
Rs. 6500 p.m. (per month) out of total HRA received of Rs.
12000 p.m. In other words, net taxable portion of the HRA
works out to be Rs 162000 i.e., Rs 240000(HRA received)
minus Rs 78000(HRA tax exempt).
Is This Answer Correct ? | 13 Yes | 3 No |
Post New Answer View All Answers
i paid tds through my bank account but i entered the assessment year as 2010-11(the current year) instead of 2011-12(actual assessment year). what is the remedy for this. how do i get refund for the wrongly paid sum. or is there any way to currect the assessment year?
can TDS be deducted(in Jharkhand) from the bill of a supplier who supplies goods from Delhi to Jharkhand taxable @12.5% under jharkhand VAT ACT?Whether Entry tax is also deductible in this case
WHAT IS THE PROVISION OF INCOME TAX, SELF ASSESSMENT TAX AFTER AUDITING GIVE THE EXAMPLE WITH ENTERY
do we have tds in nigeria
can we purchase software agaist Form under In the telecommunications network; or
What are allowable and dis-allowable expenditure?
What r the foll tax deductions for :- 1.TDS 2.WCT Give me answers in detail & give me some addtional info on these topics which would be helpful for me.
How To Calculate Gross Sales for vat return -15
Can it be prssible, If any person purchase Reliance life insurance policy with nepal residence address profe. If yes then who can deposit nepal curancy in indian branch.
What is the procedures for withdrawing of form C?
In wct limit is Rs.5lac if vendor provide bill below 5lac wct will applicable or it aggregate I need deduction of wct 5lac slap
How to calculate entry tax on kraft papers format in excel under Assam Entry tax rules?
What is calculate of tds
how to calculate vat, st, cst, excise duty, customs duty, tds.
type of sale and purchase tax?