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Re: HRA

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As per Income tax act employee will the HRA exemption of the following:-

Actual HRA received by the employee- In your salary slip HRA component are mention & their amount are also mentioned.

In your case HRA =7500/-

2. 50% of Basic (if in metro i.e. Delhi, Mumbai, Kolkata & Chennai Only) / 40% of basic (if in non-metro i.e. Other cities)
3. Rent paid minus 10% of basic

Example-         

 

Basic Salary         = Rs. 15000

HRA =Rs. 7500

Condition 1- HRA mentioned in your salary slip i.e. your eligibility is Rs. 7500/- per month

Condition 2- 50% of Basic i.e. your eligibility is Rs. 15000*40% = Rs.6000/- per month (suppose you are stay in non-metro)

Condition 3-Rent paid -10% of basic i.e. 10000-10% * 15000 i.e. Rs. 8500/-

Suppose you are stay in rent & the rant amount is Rs. 10000

From the above “least of three” rule,

Therefore HRA exemption limit is Rs. 6000/-per month


Regards,

Rakesh


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