Wrong Calculation of Exemption of House Rent Allowance (HRA)
So, Many times claim exemption of whole amount House Rent Allowance (HRA) Received even if Some portion of HRA is Taxable. Asseessee must take exemption of minimum of -
Actual HRA Received
40% Of Salary or Incase of Metro Cities 50% of Salary
Excess of Rent Paid over 10% Salary
Note: - Here Salary means Basic plus Dearness Allowance (DA) if...