HRA EXEMPTION

sandipan 1
Viewed 1409

Hi,

BASIC-15000 HRA-7500

RENT RECEIPT-7500

As per regulation the least of following will be exempted: 1)actual HRA-7500 2)40% OR 50% of basic + DA-8750 3)rent paid-10% of basic + DA-7250

But when i enter the same in your excel sheet HRA exemption shows 5875, which i am unable to understand. That means more tax gets deducted but that should not be the case.

Please explain.

Regards Sandipan

hra-exemption taxable-income house-rent-allowance income-tax
1 Answers

Its 40% or 50% of (Basic+DA) and rent paid - 10% of (Basic+DA)

In your case: Rent paid - 10% of (Basic+DA) = 7500 - 10% of (15000+1250) = 5875

Pankaj Batra5212
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