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From 1-1-2007 the rent was increased to Rs. 4000 p.m. Compute the taxable HRA?

Sudesh Haldia is employed at Delhi as Store Manager in one of the Retail Companies.

The particulars of his salary for the previous year 2006-07 are as under:

The actual rent paid by him is Rs. 2,000 p.m. for an accommodation at Noida till 31-12­2006.

From 1-1-2007 the rent was increased to Rs. 4000 p.m. Compute the taxable HRA?
A . Rs. 16, 500
B . Rs. 26,250
C . Rs. 19,125
D . Rs. 31,500

Answer: A

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