Question
From the following particulars furnished by Mr X
residing in Delhi, find the taxable amount of HRA. Basic Salary (per annum) is ₹ 3,00,000, House Rent Allowance (per annum) is ₹ 60,000 and Rent paid for house in Delhi is ₹ 75,000.Solution
To calculate the exempt amount of House Rent Allowance (HRA) for Mr. X, we need to compare three amounts: Actual HRA Received: ₹60,000 Rent Paid minus 10% of Basic Salary: ₹75,000 - (10% of ₹3,00,000) = ₹75,000 - ₹30,000 = ₹45,000 50% of Basic Salary for Metro Cities: 50% of ₹3,00,000 = ₹1,50,000 The exempt HRA amount will be the minimum of these three calculations. So, in this case, the exempt HRA amount is ₹45,000. Taxable amount of HRA = 60,000-45000 = 15000
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