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Hra deduction under income tax act

Krutika Khedkar (Chartered Accountant) (77 Points)

04 March 2015

In HRA deduction, the last condition is : Excess of rent paid over 10 percent of salary.

If the actual rent paid is only for five months, then whether to consider 10% of salary for five months or for 12 months?

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2 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 04 March 2015

5 months salary shall be considered.
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As per Rule 2A of the Income-tax Rules, "....one-tenth of the amount of salary due to the assessee in respect of the relevant period....", and
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relevant period means the period during which the said accommodation was occupied by the assessee during the previous year.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 07 March 2015

Originally posted by : \|)eep @ k Gupt/\
	5 months salary shall be considered. . As per Rule 2A of the Income-tax Rules, "....one-tenth of the amount of salary due to the assessee in respect of the relevant period....", and . relevant period means the period during which the said accommodation was occupied by the assessee during the previous year.