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Oct 04, 2011 at 09:41 AM

Difference in HRA Exemption

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Hi Experts,

I am facing a calculation error in HRA Tax Exemption:

Here is my salary structure:

Basic:18000

HRA:6000

Rent Paid:7000 (updated in IT581 and ticked HRA to be exempted)

city category: non metro

as per the standard formula: (700012)-((1800012)*10%) = 62400 is the tax exemption.

But the following is the result I am getting:

BEGDA ENDDA ACC BASIS ELIGI RENT DIFF

21032011 20042011 1 18,000.00 6,000.00 7,150.54 0.00 ( instead of 7000, rent paid is getting 7150.54)

Finding the Rent for HRA/CLA/COA in the Financial year and the no. of days for HRA/CLA/COA in coming months

BEGDA ENDDA ACC RENTFY TOTMONS

21032011 20032012 1 159,645.16 1.09785E+01

Finding the annual basis

Elig (Annual) = Elig(YTD) + Elig (Curr Mon) + Proj Months * Latest Value

Basis (Annual) = Basis(YTD) + Basis (Curr Mon) + Proj Months * Latest Value

Non Metro HRA Elig

70,484.16 = 0.00 + 6,000.00 + 1.10E+01 * 5,873.68

Non Metro HRA Basis

211,452.60 = 0.00 + 18,000.00 + 0.00 + 1.10E+01 * 17,621.05

Find the annual payments and add to the CLA/COA basis to get Total Basis for the year.

Basis = Basis + { /134(CRT) + /134(RT) - /133(RT)} / Total No of Months * CLA/COA Months

Finding HRA Exemption for METRO and NON-METRO

Non-Metro HRA Exemption is 0.00

the minimum of the following three

84,581.04 = 40.00 * 211,452.60 / 100.00

70,484.16

138,499.90 = 159,645.16 - { 10.00 * 211,452.60 / 70,484.16

Finding Perk value for CLA/COA

Total HRA Exemption = 70,484.16

Thanks,

Rethi