Answer Posted / pardeep

According to section 10 (13A) of Income Tax Act, 1961 read
with rule 2A of Income Tax Rules, least of following three
is exempt from tax:

1. Actual HRA received
2. Rent paid in excess of 10% of salary (Basic + DA)
3. 40% of salary (50% if residing in a metro i.e., New
Delhi, Kolkata, Chennai or Mumbai)

Salary for the above purpose means BASIC + DA. However,
private sector organizations, usually, doesn’t provide DA
to employees.
Let’s take an example. Suppose that you’re residing in
Mumbai and paying a rent of Rs 11500p.m. and that your
salary package comprises the following:

Basic — Rs. 50,000 p.m.
DA — Nil
HRA — Rs. 20,000 p.m. (40% of basic)

Now, the exempted amount of HRA will be least of the
following three figures:

1. HRA received i.e., Rs. 12000
2. Rent above 10% of basic i.e., Rs. 6500 (Rs. 11500– Rs.
5,000)
3. 50% of basic i.e., Rs. 25,000

The least of the three is Rs 6500; therefore, in this
particular case you’re entitled for HRA tax exemption of
Rs. 6500 p.m. (per month) out of total HRA received of Rs.
12000 p.m. In other words, net taxable portion of the HRA
works out to be Rs 162000 i.e., Rs 240000(HRA received)
minus Rs 78000(HRA tax exempt).

please explain what is actually E-15 what is its process and also what its importance.

2393

---

Explain long term capital gains and how is it different from short term capital gains?

1125

---

I have a plot at Visakhapatnam. I have entered into a contract with a builder which enables him to construct 10 flats on the plot and builder and myself will share 50:50 of the constructed area. i.e. builder will get 5 and i will get 5 flats. Builder is not paying me any other consideration apart from 5 flats. Kindly clarify as to whether any servive tax is applicable and payable by me ?- kgr varma

1979

---

What is the SEZ formalties in cement Industry?

2554

---

What do you understand by dissolution of firm?

1103

---

interest paid to bank rs.15000 in conection with statutory income tax proceedings.

2075

---

WCT charged on firm or on proprietor?

1566

---

Can u provided all the dues date and depositing date which are used in general manner or Income tax..

1717

---

Differentiate between financial year, assessment year and previous year?

1223

---

What are the streamlined sales and use tax agreement?

1078

---

How can deduct tds from auction cases (timber)

1983

---

What is the limitation for loan from pvt ltd company to other sole proprietor company suppose 25 lakhs given. what is the rule at the time of income tax point of view. Please clarify anybody....

2098

---

what is period VAT revised return can be filed?

1756

---

Service tax applicable or not for Govt Guest House contract work.

2069

---

What are the excise duties in our state?

2468

---