Dear Experts,
I have a problem with HRA Exemptions and Exemptions U/S 10.
For IT Deduction, HRA Exemption should be lowest amount of 3 parameters like
1. 40% of basic salary 2. Actual HRA Received, 3. Excess of rent paid over 10% of basic salary.Here, the HRA exemption is not calculating properly,
for example: One employee salary is like this
Basic salary is 20,000 (40% is =8000)
HRA is 8,000
Actual rent paid per year is 42000 (In IT 0581), per month 3500
1. 40% of Basic is = 8000
2. HRA Received =8000
3 excess paid over 10% basic is = 1500
Among those three, the least amount is 1500 should be deducted as IT deductions, but its showing different amount (Please find the screenshot attached)
Coming to Exemptions U/S 10: here we should get, exempted amount of HRA and Conveyance allowance.
For example
In the above case, HRA Exemption is 1500 per month and 18000 per year in the same way Conveyance allowance is 800 per month and 9600 per year
In this column, I should get HRA + Conveyance allowance (18,000+9600)= 27,600.
But, its showing different amount (Please find the attachment) for some employees, total hra amount received in the year also adding in "Exemptions U/S 10" but client requires only HRA and Conveyance exemptions.
I have came across so many threads in the blog and got confused,
Kindly guide me IF I AM WRONG and let me know what are the steps that i have to change for the desired output in above mentioned 2 issues.
Best regards
Raveendra. B