Hra

Hi Biswajit,

You can claim Rs. 28,800/- (i.e. Rs.4800 X  6 months) HRA as a deduction u/s. 10 (13A).

Deduction of HRA U/s. 10 (13A) is calculated as under,

It is lower of,

1.) 50% of salary (where residential house is situated in Mumbai, Delhi, Kolkata or Chennai) or 40% in case of other than these four cities,

2.) HRA received from employer

3.) Rent paid minus 10% of salary*

(*Salary for this purpose means Basic Salary + D.A. + Commission based on fixed percentage of turnover achieved by employee.)

My Suggestion : If possible, ask your employer to give bifurcation of consolidated salary (into HRA, Transport allowance etc.)  paid in first six months, to get maximum benefit of the exemption.

Thanks,

CA. Devanand Jethanandani

Your Query: How much could i show HRA for Income tax exemption. 

Reply: Yourself can compute the HRA exemption:- 

Deduction of HRA U/s. 10 (13A) is calculated as under,

It is lower of,

1.) 50% of salary (where residential house is situated in Mumbai, Delhi, Kolkata or Chennai) or 40% in case of other than these four cities,

2.) HRA received from employer

3.) Rent paid minus 10% of salary*

(*Salary for this purpose means Basic Salary + D.A. + Commission based on fixed percentage of turnover achieved by employee.)

If you find it difficult, let us know.