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how to TAX HRA recvd from 2 employer..??

(Guest)

can come1 pls tell me how to calclate the taxable HRA in the hands of the employee, wen it is recd frm more than 1 employer...

is there any special provision..??

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11 Replies

Sunil Liladhar Kotak (Manager (F & A)) (2025 Points)
Replied 01 January 2010

dear u need to make 2 calculations. be clear that it has to be month - wise - u will not face any problem in the claculations -

calculations & method is same whether u have one employer or 2 employer

sunil

1 Like

shailendra (C.A. FINAL) (189 Points)
Replied 01 January 2010

It does not matter that you have received HRA from one or more employer's. You will get the HRA exemption as per sec 10(13A) only.

The HRA will always be calculated as per the limits given in above section.

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Hareesh H Sharma (Cleared IPCC..now article) (894 Points)
Replied 01 January 2010

As said above as its calculated on monthly basis there wont be a prob wit the number of employers..the calculation will be the same...it will be done separately for the period it is received from both employers

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C.Balaji (Learner) (1867 Points)
Replied 02 January 2010

It also comes u/s 10(13A)......calculate HRA separately for both employers on the basis of months worked....

1 Like

CA Jayesh Gokalgandhi (CA in Industry) (126 Points)
Replied 02 January 2010

If HRA is received from two different employers without overlapping each other (ie in different months) then each employer will calculate exemption against HRA paid by them respectively (Sec 10(13A))..

However, if an employee is working in two different organisations simultaneously.. then he may claim proportionate exemption (of total rent payment) from each employer in such a way that the exemption is optimised...

Pls. clarify which situation u are taking about..

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@ CA. $ahar$h @ (Student) (338 Points)
Replied 02 January 2010

Noope.there is no special provision.actually u need to calculate HRA every time there is change in any of the following:

1- Basic salary

2-Fixed percentage of sales commission

3-Dearness allownce froming part of Rbs.

So if when person is employed with a new org. then see if there is change in any of the abovementioned items. if yes calculate for each employer and if no.the previous will go.

1 Like

nikhil bapat (CA) (212 Points)
Replied 02 January 2010

HRA will be calculated for every employment separately on the basis of number of months worked with each employer. The exemption will be governed by Sec 10 (13A) of Income Tax Act in each case.

If the assessee has worked with more than 1 employer in a given period, where he is given HRA, then HRA for that period can be claimed proportionately from every employer

1 Like

(Guest)

Originally posted by : CA Jayesh Gokalgandhi
	thnax for ur reply....can u please clarify the 2nd situation that u mentioned here.... Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} If HRA is received from two different employers without overlapping each other (ie in different months) then each employer will calculate exemption against HRA paid by them respectively (Sec 10(13A)).. However, if an employee is working in two different organisations simultaneously.. then he may claim proportionate exemption (of total rent payment) from each employer in such a way that the exemption is optimised... Pls. clarify which situation u are taking about..

CA Jayesh Gokalgandhi (CA in Industry) (126 Points)
Replied 04 January 2010

Since u have not specified any amounts, i have attached a xl sheet which u can modify as per actual numbers.. hope this helps..

Attached File : 49 hra calculation.xls downloaded: 1088 times

1 Like

Dharanitharan Ravindran (2 Points)
Replied 23 August 2017

If I pay rent to multiple landlord in a year (say 6 months I stayed in one flat and next 6 months in another) how to apply multiple PAN in this situation?

Shubham mulatkar (Software engineer) (22 Points)
Replied 22 February 2022

Originally posted by : Sunil Liladhar Kotak
	dear u need to make 2 calculations. be clear that it has to be month - wise - u will not face any problem in the claculations - calculations & method is same whether u have one employer or 2 employer sunil

Hi Sunil,

As you said for 2 employer we need to calculate HRA on monthly basis. So it means add basic salary of each month (from both employer salary slip with no overlap) for a year and then perform HRA calculation? Can You please elaborate with example as I recently switch organization and having change in salary. I appreciate your response.