The HRA is exempt under Rule 2A of the Income Tax Rules. The least of the three will be exempt, the word “three” includes the following except:
A. 40%/50% of the Salary
B. Rent paid by the employee in excess of 10% of the salary
C. 50% of the HRA received
D. Actual HRA received
Answer:C
The HRA is exempt under Rule 2A of the Income Tax Rules. The least of the three will be exempt, the word “three” includes the following except:
A. 40%/50% of the Salary B. Rent paid by the employee in excess of 10% of the salary C. 50% of the HRA received D. Actual HRA received