NUMERICALS OF HOUSE RENT ALLOWANCES
INCOME UNDER THE HEADS OF ‘SALARIES’
- Mr X, resides in Ajmer gets Rs.48,000 p.a. as basic salary during the previous year 2019-20. He gets Rs.4,800 as D.A. Forming part of salary and 7% Commission on sales made by him. (Sales made by him during the relevant period is Rs.86,000) He receives Rs.6,000 as H.R.A. Though he pays a rent of Rs.5,800 p.a. Determine the exempted and taxable HRA. (Ans: 6000)
- Mr.X, resides in Chennai, gets Rs.3,00,000 p.a. as basic salary, D.A. Forming part of salary for service benefits Rs.40,000 and 2% Commission on turnover achieved by him. (Turnover achieved by him during the relevant period is Rs.3,00,000) He receives Rs.60,000 as H.R.A. Though he pays a rent of Rs.80,000 p.a. (Ans: 14,600)
- Mr.Z, who lives in Coimbatore with his family in his own house is employed in Pvt. Company. He gets basic salary Rs.2,000 p.m. D.A.- Rs.500p.m. (30% is not considered for retirement benefits), C.C.A.- Rs.200 p.m. H.R.A- Rs.4,500 p.m. From 1-12- 2019 he lives in a rented house paying a rent of Rs.5,000 p.m. (Ans: 14,240)
- Mr.R, who lives in Trichy, receives Rs.1,00,000 p.a. as Basic salary, and Rs.30,000 p.a. as D.A. (2/3rds of is forming part of salary), and he also receives commission Rs.1,000 p.m., Bonous Rs. 15,000 p.a and H.R.A. – Rs.24,000 p.a. (Rent paid in Trichy – Rs.30,000) Note: Commission on purchases @ 1% (Purchases Rs.40,000) Commission on Profits 2% ( Profit Rs.50,000). (Ans:6000)
- Mr. Ram resides in Chennai and gets Rs.10, 000 per month as basic salary Rs. 8,000 per month as DA (entering service benefits), Rs.12, 000 per month as HRA. He pays Rs. 10,000 per month as rent. Calculate taxable HRA. (Ans: 45,600)
