Dear Vijay
You are right but you cannot take the full benifit of HRA exemption from Income Tax Act
For Ex : Employee Montly Gross is Rs 2,50,000/-
Basic-125000 ( 50% of Gross)
HRA-75000 (60% of Baisic ) as per your advise
Conveyance-800
Special Allowance-49200
HRA Calculation
01.Actual HRA received 900,000.00
02.40% basic Salary non BCDM 600,000.00
03.Actual Rent Paid-10% Basic Salary 810,000.00
(Rent Paid -960000 - 10% of Basic-150000)
In the above three conditions whic ever is less is exemptin remaining taxable
i.e Actual HRA received 9,00,000
exemption is 6,00,000
----------
Taxable HRA 3,00,000
----------
So my question is are you benefited full exemption from HRA
Regards
Suresh VVN
From India, Hyderabad
1You are right but you cannot take the full benifit of HRA exemption from Income Tax Act
For Ex : Employee Montly Gross is Rs 2,50,000/-
Basic-125000 ( 50% of Gross)
HRA-75000 (60% of Baisic ) as per your advise
Conveyance-800
Special Allowance-49200
HRA Calculation
01.Actual HRA received 900,000.00
02.40% basic Salary non BCDM 600,000.00
03.Actual Rent Paid-10% Basic Salary 810,000.00
(Rent Paid -960000 - 10% of Basic-150000)
In the above three conditions whic ever is less is exemptin remaining taxable
i.e Actual HRA received 9,00,000
exemption is 6,00,000
----------
Taxable HRA 3,00,000
----------
So my question is are you benefited full exemption from HRA
Regards
Suresh VVN
From India, Hyderabad
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