House Rent Allowances calculation for IT Exemption

[SURYAKANT MITHBAVKAR]

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

[Guest]

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

AI Summary

House Rent Allowance calculation for income tax exemption balances actual rent, salary-derived ceiling, and excess rent over salary. HRA exemption equals the least of three measures: actual rent paid; a salary-based ceiling (50% of salary in specified metropolitan cities, otherwise 40%); and rent minus 10% of salary. Salary includes basic pay, fixed dearness allowance, fixed dearness pay and percentage commission on sales.