So, we have discussed about house rent allowance.
Did you understand?
Either house rent allowance should be as much as actual or
rent paid in excess of 10% of the salary.
And salary means salary plus dearness allowance plus
commission if it is received on the basis of turnover.
If commission is not received on the basis of turnover,
then it will not be considered as part of salary.
And thirdly, if you live in KCDM, KCDM means metro cities.
Calcutta, Chennai, Delhi, Mumbai, KCDM, if you live here,
then 50% of the salary.
If you compare all these three, the one which is the least
among all three will be exempt and the one above that will
be taxable.
Now, let's try to understand a question.
Mr. Raj Kumar has some receipts from his employer and he
says that his basic salary is Rs. 40,000 per month plus
dearness allowance plus commission.
There is house rent allowance and motor vehicle is also
given to that person.
Now, tell me, find out the amount of HRA eligible.
Assuming that he has given rent of Rs.
16,000 per month, that too at which place?
At Kanpur.
So, if it is at Kanpur, then it does not come under metro
cities.
We had mentioned four metro cities here.
KCDM, Calcutta, Chennai, Delhi, Mumbai.
If it is at Kanpur, then 40% limit.
So, let's calculate it, friends.
First of all, what will I have to do?
First of all, I will have to see the actual.
I will do it together.
You also try to do it together.
Let's see if our answers are same.
Let's play a little.
He is saying that the basic salary is this much and
dearness allowance is this much.
First of all, see how much is the actual?
Actual.
How much is the actual HRA that has been given?
It is written in the question of actual HRA.
Rs. 15,000 per month.
How much is the annual salary?
Rs. 1,80,000.
Rs. 15,000 multiplied by 12.
It is Rs. 1,80,000.
This is point no. 1.
Point no. 2 was that rent paid in excess of 10% of the
salary.
Now, what do I need for this?
How much is the actual rent that he has paid?
He has paid Rs. 16,000 per month.
If I multiply Rs.
16,000 per month by 12, then it will be Rs.
Rs. 1,92,000.
And how much more should it be?
Minus 10% of the salary.
10% of the salary.
Now, what is the salary in this case?
Look carefully, friends.
I had said that the income tax people themselves tell us
what the salary should be.
So, they had said that in this case, the basic salary plus
dearness allowance, which is your inflation, and thirdly,
they had said commission.
But which commission?
The part of turnover.
Is it written anywhere in this case that this commission is
the part of turnover?
So, will I take it?
I will not take it.
So, what will be my salary?
Rs. 46,000 per month.
My salary will be Rs. 46,000 per month.
So, 10% of Rs.
46,000 multiplied by 12, and multiply it by 10%.
Which will come out.
Thirdly, in which city is he living?
He is living in Kanpur.
So, he lives in Kanpur.
So, 40% of salary.
So, how much is the salary?
Rs. 46,000 per month, according to this purpose.
One figure for the next 12 months, and multiply it by 40%.
Now, whatever happens out of these three, you will get your
exemption.
Is there any problem in this?
Any problem?
Let's see the solution.
Let's see what exemption he has given.