How to calculate House Rent Allowance (HRA) and exemption thereon?
From the House Rent Allowance (HRA) received as part of salary during the year, least of the following three amounts is exempted from tax (or not included in income): • HRA allowance actually received • Rent paid –10% salary (Basic + DA forming part of salary + commission as a % of turnover) • 40% of salary (50% for Metro city) • Transport allowance / Conveyance Allowance Transport allowance for traveling from residence to work place up to Rs 800 per month is exempted • Children Education Allowance Children Education Allowance is exempted up to Rs. 100/- per month per child for two children.
Related Questions
- When a family chooses the flat rent, is the utility allowance then subtracted from the flat rent to calculate the rent paid by the family? Or is the rent just the flat rent?
- Can I take advantage of tax benefits from a home loan as well as claim House Rent Allowance (HRA) ?
- Can I avail income-tax deduction for house rent allowance (HRA) as well the home loan interest?
