Query On Calculation On Income Tax - CiteHR
Pon1965
Construction
Vidyadhar Bhat
Consultancy In Pf
RAMAKANT R
Accounts Manager
Mail8013
Hr Consultant
Neil_0812
Sales Engineer

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If the gross salary is Rs.30040. Net earning income is Rs.28134 after deduction of PF & profession tax. Out of Rs. 28134, Rs. 7110 is HRA, basic: Rs. 14220, conveyance allowance: Rs 8710.
What is the income tax that will be applicable for a man?? And how much maximum tax can I save by submitting rent agreement and other essential documents .
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Give rent slip for Rs 8600/- per month, if staying in any metro city chek PF deduction amount, if it is 12% of basic on 14,220/- then no additional investment required.
NO income tax payable on your income, if you are in Metro city.
Yes I am staying in a metro city (Mumbai) . My PF deduction is 12% of basic. So if I give a rent slip of Rs. 8600/- I wont be liable to pay any Income Tax right?
Your HRA is 7110/-. How can you produce rent receipt for Rs.8600/-. Not allowed. Pon
Yes. No income tax liability subject to no other income in hand such as bonus, incentive etc.
You are allowed to produce rent receipt of Rs 8,600/-. This will be actual rent paid.
PON:
Rent payment is not dependent to House rent allowance received. You can pay rent less than, equal to , or greater than HRA.
Manjay Sharma is correct.
Since your total earning (by way of salary received from your employer) is 3,60,480/- , you do not have to worry about paying tax if you show a rent slip of any amount exceeding Rs. 8,600/- per month.
However, please check if there are any other payments being received by you from your company in form of bonus/incentive. If so, the you need to add that too in your earning. However, even if you get any other payments in form of bonus/incentive upto 90,000/- there will be no tax liability on you.
Cheers, AB
I don't agree. House Rent paid is related to actual HRA received.
Refer point No. 9 of I.T. rules in the below link.
Allowances allowable to tax payer
Pon
Pon,
You read all income tax law and understand it's context and applicability.
As long as the rented house is not owned by the assessee, the exemption of HRA will be available up to the the minimum of the following three options:
1. Actual house rent allowance received from your employer
2. Actual house rent paid by you minus 10% of your basic salary
2. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro.
In above referred case, if assesse pays rent equal to or more than Rs 8,600/- PM then his whole HRA received will be exempted from payment of Income Tax.
Whether you receive HRA , Less........more..... HRA does not stop you from Paying Rent lesser... or higher.....
If a assesse do not get HRA then also he can pay rent but he will not get exemption benefit from the Income Tax.
Here the point is on tax exemption on rent paid with ref. to HRA. No limit on actual rent to be paid. My context is on tax exemption. Pon
Pon,
My last message on this topic to you.
You Mentioned "Your HRA is 7110/-. How can you produce rent receipt for Rs.8600/-. Not allowed. Pon"
Trust, you have understood the mistake from your end. If you still think that you are right, that is your call.

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