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HRA calculation u/s 10(13A) of I.T. Act.

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

25 June 2011

Please compute taxable & exempt portion of HRA in following case as under:-

i) HRA Rs.2500/- per month getting from employer.

ii) Basic Salary Rs. 40000/- per Month.

iii) The employee is also paying Rent @ 2500/- per Month to lanlord.

iv) He is living in Bhilwara (Rajasthan).

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8 Replies

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 25 June 2011

as per section 10(13A) read with rule 2A ,least of following three will be exempted

House Rent allowance (HRA) received.
50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case.
Rent paid in excess of 10 % of salary.

HENCE ACTUAL HRA RECEIVED= 2500*12= 30000

40% OF SALARY= 480000*40%= 196000

RENT PAID- 10% OF SALARY= 30000- 480000*10%=O (CAN NOT BE NEGATIVE)

HENCE NO EXEMPTION IN THIS CASE

1 Like

Sunshine (Helping All) (10575 Points)
Replied 25 June 2011

agree with future CA...no exemption ...

Aparna Raja K.C (Student) (520 Points)
Replied 25 June 2011

Rent Received = 2500*12 = 30000

40% of salary = 480000*40% = 196000

Excess of Rent paid over 10% of salary = 0

Considering the least of above

No exemption :)

CA Rakesh Garg (Asst. MGR Taxation) (510 Points)
Replied 26 June 2011

Originally posted by : future ca
	as per section 10(13A) read with rule 2A ,least of following three will be exempted House Rent allowance (HRA) received. 50% of salary in case of residential accommodation taken on rent is situated in Bombay ,Calcutta ,Delhi, or Madras (Chennai) and 40 % of salary in in any other case. Rent paid in excess of 10 % of salary. HENCE ACTUAL HRA RECEIVED= 250012= 30000 40% OF SALARY= 48000040%= 196000 RENT PAID- 10% OF SALARY= 30000- 480000*10%=O (CAN NOT BE NEGATIVE) HENCE NO EXEMPTION IN THIS CASE