How to calculate income tax for office subordinate?
OLD REGIME 1. YEAR TOTAL AMOUT RECEIVED INCLUDE ALL ALLOWANCE (+) 2 OTHER INCOME (+) TOTAL............................................................................................................. EXEMPTED ALLOWANCE 1. TRAVEL ALLOWANCE (-) 2. WASHING ALLOWANE(-) 3 FOOD ALLOWANCE (-) 4 HOUSE RENT PAID (-) Rules for HRA Claims HRA cannot surpass 50% of the basic salary. It is not possible to claim tax exemption on the full rental amount that is being paid. The exemption allowed will be the least of the following three options: 1- The amount received as HRA from the employer 2- Actual rent paid minus 10% of salary 3- 50% of basic salary for those living in metro cities and 40% for those living in non-metro cities HRA tax benefits can be availed together with a home loan. If an employee is residing with his or her parents, the individual can pay them rent, get a receipt of the payment and then make a claim of HRA. It must, however, be noted that it is no
