what is HRA ? How will calculated ?

Answers were Sorted based on User's Feedback



what is HRA ? How will calculated ?..

Answer / guruprasad

HRA Means "House Rent Allowances"

1. Actual HRA received from the organization
2. Rent Paid for the year minus 10% of Basic
3. 40% of Basic Salary

it should be calculated by the minimum value of above 3 points.

Is This Answer Correct ?    75 Yes 12 No

what is HRA ? How will calculated ?..

Answer / lalitha

We can calculate House Rent Allowance by the following:
H.R.A.Received ....
Less:
1.actual HRA received...
2.50%(in metro cities) of salary ...
40%(in other cities) of salary ...
3.Rent paid over10%of salary ...
in above three which ever less is exempted .....

Is This Answer Correct ?    31 Yes 4 No

what is HRA ? How will calculated ?..

Answer / yogesh

On Basic plus Dearness Allownce.

Is This Answer Correct ?    24 Yes 7 No

what is HRA ? How will calculated ?..

Answer / bhupender janmejai

HRA stands for House Rent Allowance, it is an allowance that almost every salaried employee receives as part of there salary package from there employer to meet the cost of rent that they pay for their home. In other words, HRA is a compulsory part of salary of an individual which every salaried person receives irrespective of the type of property he resides in. Which means, if your employer chooses to offer HRA then you will get this as part of your salary whether you stay in a rented house or reside in your own house.
As being a taxable part of salary, HRA gets special treatment in income tax law and is exempt from income tax to a certain extent. Now you must want to know ‘How much income tax exemption can you claim on your HRA?’

As per the income tax law, least of following three will be exempted.

Actual amount of HRA received from your employer as part of your salary

Actual house rent paid by you minus 10% of your basic salary (this includes basic + dearness allowance, if any)

50% of your basic salary (if you reside in a rented house in metro city) or 40% of your basic salary (if you reside in a rented house in non-metro city)

Is This Answer Correct ?    11 Yes 4 No

what is HRA ? How will calculated ?..

Answer / subha

Basic + dearness allowance is called as HRA (house rent allowance)

Is This Answer Correct ?    0 Yes 0 No

what is HRA ? How will calculated ?..

Answer / dinesh katoch

HRA means House Rent Allowance. It is calcualted on Basic
Salary as per City classes. 10 to 40%

Is This Answer Correct ?    7 Yes 23 No

Post New Answer

More Audit Interview Questions

What are dormant deposits and which is the difference with dormant accounts? Thanks

1 Answers   Reliance,


what is sales tax

1 Answers  


what will you do if you dont get this job

12 Answers   Bank Of America, Schlumberger, State Street, Videocon,


outstanding assests

2 Answers  


What is the diffrentm between internal & external audit?

5 Answers  






What is audit control procedure?

0 Answers  


Expand---------ESRD

1 Answers  


hi i want to know the use of lookup, Hlookup and Vlookup with full example with Excel file. pls if any body have this pls help me.

4 Answers   Genpact, GIS,


What is difference between individuals & company? When deducting tds for them how we can compare them?

2 Answers  


What is external audit?

0 Answers  


Do you think Auditing job is very boring ?

3 Answers   Ernst Young,


What are the essential of internal audit?

0 Answers  


Categories