Case 1.) HRA not considered in form 16   -  This is your case 


First figure out eligible HRA exemption under 10(13A)...say x Rs 


First, get a copy of form 16 (Part B )and 12 month pay slips 


(you are recommended to watch my salary breakup using form 16 )


 


Next, note down gross salary figure 1(a) not comprising of perquisites and profits . This gross salary is comprised of exempt , non exempt and basic salary 


 


1)  First figure out basic salary from the 12 month payslip 


Add to this the salary arrears and put combined value under salary 


 


2.) Next check the salary exempt allowances from form 16. This does not contain your HRA at present.


 


3.) Subtract from gross the salary exempt and salary basic 


to arrive at NON Exempt allowance . This is not considering exempt  HRA 


 


Figure out exempt HRA as per 10(13 A) eligibility ...say x Rs 


 


Now, subtract from this non exempt allowance, the  HRA exempt portion( X rs)


 


This shall give you non exempt allowances taking into account the exempt HRA not considered in form 16


 


4.) You can put in figures of perquisite  from form 16


 


5.)  You can put in figures of profit   from form 16


 


5.) Next offer deduction under section 16 ...i.e tax on employment 


 


.you will thereafter arrive at chargeable income =


(Salary + non exempt allowances + perquisites + profits - Deductions )


 


This, as a result contains now your exempt HRA as well 


 


Don't forget to show exempt HRA in exempt income reporting section.


 


2.) In case HRA exemption is shown in form 16 


 


You will follow exact steps and in step 3 since the company has already considered exempt HRA , so subtracting total exempt allowances and basic from gross will give you non exempt allowances considering HRA exempt allowance( since it is a part of exempt salary allowances)


 


 ...So no need to figure out HRA exempt allowance separately or further subtract it again  


Again here, don't forget to show exempt HRA in exempt income reporting section


Rest, everything remain's same


 


 


(P.s - Next time select category carefully to avoid your entry getting deleted from website)