Excess of rent paid over 10% of salary

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D D

Senior Member
Hindi
1. Excess of rent paid over 10% of salary

What does aforesaid sentence mean?
Does it mean "Rent more than 10% of salary"?
 
  • sdgraham

    Senior Member
    USA English
    1. Excess of rent paid over 10% of salary

    What does aforesaid sentence mean?
    Does it mean "Rent more than 10% of salary"?
    As always, please provide one or more complete sentences and context.
    What you have provided is not a sentence.
    Thanks
     

    D D

    Senior Member
    Hindi
    It was written in my income tax book.
    Here's the full context.
    Exemption of H.R.A u/s 10(13A)
    Any amount of house rent allowance received by the employee from his employer is exempted up to the least of the following limits.
    1. Excess of actual rent paid over 10% of salary.
    2. An amount equal to 50% of salary.
     

    sdgraham

    Senior Member
    USA English
    It appears to mean that you don't have to pay tax on rent allowance from your employer up to whatever figure is 10% of your salary.
    It's not any form of English Ive ever seen, however.
     

    RM1(SS)

    Senior Member
    English - US (Midwest)
    The way I read it:

    (I'm going to use numbers here because it's too complicated to describe.)

    Salary = $1000
    10% of salary = $100
    Rent allowance = $150
    Actual rent = $200
    The actual rent is $100 more than 10% of your salary, so you don't have to pay tax on the first $100 of the rent allowance -- only on the remaining $50. If the excess were more than $500 (half of your salary), however, only the first $500 would be tax-free.
     

    D D

    Senior Member
    Hindi
    The way I read it:

    (I'm going to use numbers here because it's too complicated to describe.)

    Salary = $1000
    10% of salary = $100
    Rent allowance = $150
    Actual rent = $200
    The actual rent is $100 more than 10% of your salary, so you don't have to pay tax on the first $100 of the rent allowance -- only on the remaining $50. If the excess were more than $500 (half of your salary), however, only the first $500 would be tax-free.
    Thanks a lot, Now I get it, I couldn't understand earlier because it's been couched in law terminology.
    However, actual rent is $200 in your post. :)
     
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