About Home Rental Allowance details?

How to calculate for tds when an employee is eligible for rental allowance (staying in rental home - having rental receipts).


The steps to calculate TDS monthly/annuallyAbout Home Rental Allowance details?
These are all essentially the same question in 3 flavours :-)


If the employee claims Rental expenditure,the HRA exemption is the minimum of the following:


1. (Basic+DA)*a% (where a is 40% if you work in non-metro and 50% if in any of the 4 metros)


2. (Actual rent paid)-[(Basic+DA)*10%]





These are defined as part of Section 13AAbout Home Rental Allowance details?
As per my knowledge there is no TDS charged on monthly rental.. However there is a formulae by which tax deduction is estimated for which employee is eligible. This depends upon your basic salary and also sometimes employer considers the locality where are you staying in the city i.e whether it is Class A city or Class B (e.g metro or small city)..


You may consult your accounts/HR department to help you.
For rental allowances, read Income from Salary: http://mytaxes.in/index.php?topic=17.0





For TDS on salary: http://mytaxes.in/index.php?topic=12.0
download tax calculator and hra calculator from the following link





http://simpletaxindia.blogspot.com/2008/鈥?/a>





hra calculator


http://simpletaxindia.googlepages.com/HR鈥?/a>