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HRA exemption 10(13A)
Dear all, HRA exemption is monthly basis or yearly basis.
Replies (16)
Quick Summary
Yearly basis
Yearly basis
Calculated on yearly basis...but when rent is paid in few month's only due various reasons( newly took rent from mid of year etc). it can be calculated from that month
HRA is received every month. The deduction will be claimed all together for the whole of the year at the time of return filing, However every month when the employer will deduct the tax he will make the deduction keeping into consideration the HRA deduction.
F.y.20-21, rent paid is zero from may 20 to Dec 20 remaining months only paid. so HRA exemption takes zero for may 20 to Dec 20.
HRA exemption u/s 10(13A) can be availed in respect of the month for which rent has actually been paid. In this case, exemption would be zero from May to Dec20.
I want to know yearly basis or monthly basis
While calculating income from salary HRA shall be calculated on the basis of rent paid per month from that exemption u/s 10(13A)
shall be deducted:
Actual HRA Received :
Less : Exempt u/s 10(13A) lower of the following :
i) Actual HRA Received
ii)Rent paid less 10% of salary
iii) 50% of salary
In this case, you need calculate on monthly basis.
You can calculate it either way
Sec 10 (13A) RULE 2A
Calculation on monthly basic but you need to take exemption on yearly basic.
Wrong
In principle it is on yearly basis.
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