Question: When House Rent Allowance exempted ?
Answer by My
Reality.in - Your Investment Friend
Housue Rent Allowance (HRA) is
exempted based on the least of the following:
HRA is exempted based on the
least of the following:
(1) An amount equal to 50% of
salary*, where house is situated at Bombay, Calcutta, Delhi or Chennai and an
amount equal to 40% of salary where residential house is situated at any other
place.
(2) HRA received by the employee
in respect of the period during which rental accommodation is occupied by the
employee during the previous year.
3) The excess of rent paid over
10% of salary
* Salary means, means basic
salary and includes dearness allowance if terms of employment So, provide.
So, HRA exemption can be claimed
if you are actually paying rent for the home where you stay. As you are living
in your own house (Also loan House) and not paying rent, you can not claim HRA
exemption while computing your salary income. So HRA received from your
employer is fully taxable.
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