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House rent allowance exemption in partial rent paid

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Amanullah

mgr

109 Points Posted on 07 February 2023

I have paid partial rent for one month however I received full month HRA and basic pay for that month.

Should my HRA and Basic pay to be pro- rated to calculate the HRA exemption as I paid partial rent for that month.

Replies (4)

Quick Summary

This discussion addresses a common query regarding House Rent Allowance (HRA) exemption when only partial rent is paid for a month. The user received full HRA and basic pay despite paying rent for only part of the month. The advice given is to pro-rate the HRA and basic pay for that specific month according to Section 10(13A) Rule 2A to accurately calculate the exemption. The user's employer is not doing this, leading to a potential issue that may need correction during tax filing.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 07 February 2023

You have to calculate amount for that month separately as per mentioned rule in above reply

sabyasachi mukherjee

Profession Business

28246 Points Posted on 08 February 2023

Sec 10(13A) RULE 2A.

Amanullah

mgr

109 Points Posted on 08 February 2023

Thank you, however my employer doesn't calculate separately, consider my Full month Basic and HRA therefore no exemption given for May month where I paid partial rent