House Rent Allowances calculation for IT Exemption, Income Tax

[SURYAKANT MITHBAVKAR]

Kindly provide me how to calculate HRA for IT exemption with examples.

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[BANWARI LAL]

HRA CALCULATION ( LEAST OF FOLLOWING WILL EXEMPT)

1 ACTUAL RECIPET

2 40%/50% OF SALARY

3 RENT-10% OF SALARY

HERE SALARY MEAN = BASIC PAY+FDA+FDP+% COMMISSION ON SALES

50% OF SALARY IF PROPERTY RENTED AT BOMBEY,DELHI,CULCUTTA,MADRAS I.E (BCDM)

IN ANY OTHER CASE WE WILL TAKE 40% OF SALARY