Exemption us-10(13a) in r/o hra

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Rajan Mishra (Querist)
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21 June 2016 Respected Sir/Madam,
I have received gross salary of Rs.850799 during the year 2015-16, and my employer has shown deduction in respect of HRA in Form-16 only around Rs.37000 only.
Can I claim deduction us-10(13A) upto Rs.100000/- though the employer has shown the deduction of Rs.37000/-

Sathish M

Sathish M (Expert)
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22 June 2016 The Employer would have arrived at the HRA based on the information which you may have provided. Just to enlighten your good self the provisions of HRA under section 10 (13A) lays down -

A deduction from such HRA is allowed u/s 10(13A), which is least of the following: –

1) HRA received
2) 40% of salary (50% of the salary if the rented property is in Metro City i.e. Mumbai, Delhi, Chennai or Kolkata)
3 ) Actual rent paid less 10% of salary

Meaning of salary for HRA exemption calculation

* Salary includes basic salary, dearness allowance (if it enters into retirement benefits) and fixed percentage commission on turnover achieved by employee.
* Salary is taken on due basis for HRA calculation.
* Salary is taken only for the period for which House Rent Allowance is received.

Conditions to be satisfied for claiming HRA deduction:

# This deduction is allowed only when rent is actually paid by the employee for his residence purpose. If no rent is paid for any period then no deduction is allowed for that period.
# If there is any change in the amount of salary, rent or HRA or city of residence from metro to non-metro or vice versa during the year then such deduction is calculated on monthly basis.
# Even if rent is paid to any family members, HRA is allowed. There is no legal requirement but it is advisable to pay such rent on monthly basis and through bank transfer.
# There is no requirement that employee should not own a house property. If employee resides in a rented property, he can claim exemption even if he owns a house property in the same or different city.
# Deduction of house rent allowance, home loan interest under section 24b repayment of housing loan under section 80C can be claimed simultaneously.
# If an employee receives HRA which is allowed as deductible under this section then no deduction is allowed under section 80GG
# If maintenance charges are paid separately then no deduction is available for the maintenance charges.

Soumitra Basu

Soumitra Basu (Expert)
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24 June 2016 IF YOU ARE ELIGIBLE THEN YOU CAN CLAIM THE SAME IN THE INCOME TAX RETURN NOTWITHSTANDING THE FACT THAT YOUR EMPLOYER HAS SHOWN A LESSER DEDUCTION.

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