Murali is employed in Megha Ltd., Delhi. He is paid house rent allowance of ₹ 9,000 per month in financial year 2020-21. His salary for the purpose of computation or house rent allowance relief may be taken as ₹ 20,000 per month. Murali pays actual rent of ₹ 10,000 per month. How much of the house rent allowance is tax-free –
A. ₹ 1,08,000
B. ₹ 1,20,000
C. ₹ 96,000
D. ₹ 60,000
Answer:C
Murali is employed in Megha Ltd., Delhi. He is paid house rent allowance of ₹ 9,000 per month in financial year 2020-21. His salary for the purpose of computation or house rent allowance relief may be taken as ₹ 20,000 per month. Murali pays actual rent of ₹ 10,000 per month. How much of the house rent allowance is tax-free –
A. ₹ 1,08,000 B. ₹ 1,20,000 C. ₹ 96,000 D. ₹ 60,000