House rent allowance exemption in partial rent paid
Amanullah (mgr) (107 Points)
07 February 2023Should my HRA and Basic pay to be pro- rated to calculate the HRA exemption as I paid partial rent for that month.
Amanullah (mgr) (107 Points)
07 February 2023
Nikita Rai
(CA Accountant and Manager)
(48 Points)
Replied 07 February 2023
Really looking forward to read more. Keep writing.
House rent allowance is a component of salary which is exempt from tax under Section 10(13A) of the Income Tax Act. This exemption is available only if the employee is paying rent to a landlord. The exemption is allowed up to a maximum of 50% of the salary or Rs. 60,000 whichever is lower. The amount of exemption allowed is the least of the following three:
1. 50% of the salary
2. Actual house rent allowance (HRA) received
3. Actual rent paid minus 10% of basic salary
So, if you are paying partial rent to your landlord, then you will be eligible for the exemption up to the amount of rent paid. However, you must ensure that you meet all the criteria, including furnishing the necessary rent receipts, to avail of the exemption.
CA Rashmi Gandhi
(Chartered Accountant)
(83540 Points)
Replied 07 February 2023
Amanullah
(mgr)
(107 Points)
Replied 08 February 2023
CA Rashmi Gandhi
(Chartered Accountant)
(83540 Points)
Replied 10 February 2023