How To Maximize HRA Benifit

Dear All,
I am working in Pune based company. My salary is INR 35,000 per month. As per my salary structure I am getting 2800 as HRA but I am paying INR 9,000 as a rent. So I am not getting full benefit of HRA in income tax. Can any body tell me how much HRA benefit I can get in income tax if I am getting INR 35000 per month.

What is your basic pay?
For Pune, you can claim 40% of your basic as HRA to avail I.T.exemption. Talk to your HR for structuring the HRA as 40% of your basic pay.
Pon

Dear Ajay
If you have the freedom to design your own salary structure, then keep the basic salary at the highest possible level. eg: at a salary of 35000/- if we keep the basic salary at 20,000/- INR. Now the maximum benefit under HRA can be given to you is 40% of basic (As you are residing in tier II city). This will give you tax benefit of Rs. 8000/- pm on production of rent receipt.
Rgds
Amit

Income tax exemption calculation formulain 6 steps for HRA is given below :
1 hra received from company 2800 pm X 12 = 33600.00
2 actual rent paid 9000 pm x 12 = 108000.00
3 10% of basic+da+perspay your mnthly amt X 12 = ????
4 diff (2-3) ????
5 40/50% of basic+da+perspay calculate 40% in your case
6 exempted (lowest 1,4,5) = ????
You can use above formula to get your har exemption.
__________________
Regards
PayrollSolutions