How to calculate HRA for Income tax rebate?

As per Income Tax department circular No. 8/2012 dated 5 Oct 2012 the HRA calculation which is illustrated in that as under

S.No.	Particulars	Rupees
1	Salary	2,50,000
2	Dearness Allowance	1,00,000
3	House Rent Allowance	1,40,000
4	House rent paid	1,44,000
5	General Provident Fund	36,000
6	Life Insurance Premium	4,000
7	Subscription to Unit-Linked Insurance Plan	50,000

Computation of total income and tax payable thereon

S.No.	Particulars	Rupees
1	Salary + Dearness Allowance + House Rent Allowance 2,50,000+1,00,000+1,40,000 = 4,90,000	4,90,000
2	Total Salary Income	4,90,000
3	Less: House Rent allowance exempt U/s 10(13A): Least of: (a)  Actual amount of HRA received= 1,40,000 (b) Expenditure of rent in excess of 10% of salary (including D.A. presuming that D.A. is taken for retirement benefit) (1,44,000-35,000) = 1,09,000 (c) 50% of Salary(Basic+ DA) = 1,75,000	1,09,000
	Gross Total Income	3,81,000

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