Allowances of exemption u/s 10(13A)

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Dwijen Choudhury

22 Points Posted on 07 July 2021

A question regarding house rent exemption:
Before start the question few points is given below-
1. Suppose both husband and wife are working as State government employees.
2. A home loan was taken from SBI in the name of both husband and wife( combined account).
3. The benefit of HRA is getting only one( whose HRA is higher) as both are working and staying in the same station.
4. The interest and principal amount of that home loan is being equally divided at the time filling in computation form at u/s 24(i) and u/s 80 c ( repayment of principal amount of HB Loan) respectively.
5. But, the allowances of exempt is not deducted u/s 10(13A) as they stay their own house and both employees are working in the same station.
7. Now, his wife got transferred into another station and both are getting HRA from Govt as both employees are in different station .
8. She is staying in a rented house in her working place and pay her rented amount on monthly basis.
Now my question is :
Can she get deduction of the allowances of exempt u/s 10(13A) as she is paying the rent in her service station along with equal parts of interest and principal amount that have been already deducted.
Kindly clarify Sir along with conditions ?

Replies (5)

Quick Summary

This discussion explores the eligibility for House Rent Allowance (HRA) exemption under Section 10(13A) for a married couple who are both government employees. Initially, only one spouse claimed HRA as they lived in the same location and owned a home. However, after one spouse was transferred, they began living separately and paying rent. The question is whether the transferred spouse can now claim HRA exemption, even while also contributing to a joint home loan.

sabyasachi mukherjee

Profession

19978 Points Posted on 08 July 2021

1. Both are govt. employees and both are staying seperately in a rented premises seperately due to job location.
They can both avail HRA.
Now both have applied jointly for a home loan.
So both are not entitled to get a benefit seperately while filing returns seperately.

DWIJEN KR. CHOUDHURY

Pharmacist

22 Points Posted on 08 July 2021

Thank you so much Sir for your valuable information

debora M

BUSINESS DEVELOPMENT MANAGER

1382 Points Posted on 08 July 2021

House rent allowance (HRA) is received by the salaried class. You can claim exemption on your HRA under the Income Tax Act if you stay in a rented house and get a HRA from your employer. The HRA deduction is based on salary, HRA received, the actual rent paid and place of residence.

HRA Exemption Calculation u/s 10(13A)

Actual HRA received from the employer.
Actual rent paid reduced by 10% of the salary*
40% of the salary* (50% in case of metro cities

While salaried individuals can claim deductions under Section 10 (13A) if HRA is part of their salary package, individuals whose salary does not include HRA can claim tax rebate under Section 80GG of the law.