Dear All,
I am working in a Pune-based company. My salary is INR 35,000 per month. As per my salary structure, I am getting INR 2,800 as HRA, but I am paying INR 9,000 as rent. So, I am not receiving the full benefit of HRA in income tax. Can anybody tell me how much HRA benefit I can get in income tax if I am earning INR 35,000 per month?
From India, Pune
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I am working in a Pune-based company. My salary is INR 35,000 per month. As per my salary structure, I am getting INR 2,800 as HRA, but I am paying INR 9,000 as rent. So, I am not receiving the full benefit of HRA in income tax. Can anybody tell me how much HRA benefit I can get in income tax if I am earning INR 35,000 per month?
From India, Pune
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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
From India, Lucknow
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616From India, Lucknow
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Dear Ajay,
If you have the freedom to design your own salary structure, then keep the basic salary at the highest possible level, e.g., at a salary of 35,000/-. If we keep the basic salary at 20,000/- INR, the maximum benefit under House Rent Allowance (HRA) that can be given to you is 40% of the basic (as you are residing in a tier II city). This will provide you with a tax benefit of Rs. 8,000/- per month on the production of rent receipts.
Regards,
Amit
From India, Delhi
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If you have the freedom to design your own salary structure, then keep the basic salary at the highest possible level, e.g., at a salary of 35,000/-. If we keep the basic salary at 20,000/- INR, the maximum benefit under House Rent Allowance (HRA) that can be given to you is 40% of the basic (as you are residing in a tier II city). This will provide you with a tax benefit of Rs. 8,000/- per month on the production of rent receipts.
Regards,
Amit
From India, Delhi
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Income tax exemption calculation formula in 6 steps for HRA is given below:
1. HRA received from the company: 2800 pm X 12 = 33600.00
2. Actual rent paid: 9000 pm X 12 = 108000.00
3. 10% of basic + DA + personal pay: your monthly amount X 12 = ????
4. Difference (2-3) = ????
5. 40/50% of basic + DA + personal pay: calculate 40% in your case
6. Exempted (lowest 1, 4, 5) = ????
You can use the above formula to calculate your HRA exemption.
Regards,
Payroll Solutions
From India, Delhi
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1. HRA received from the company: 2800 pm X 12 = 33600.00
2. Actual rent paid: 9000 pm X 12 = 108000.00
3. 10% of basic + DA + personal pay: your monthly amount X 12 = ????
4. Difference (2-3) = ????
5. 40/50% of basic + DA + personal pay: calculate 40% in your case
6. Exempted (lowest 1, 4, 5) = ????
You can use the above formula to calculate your HRA exemption.
Regards,
Payroll Solutions
From India, Delhi
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