HRA exemption 10(13A)

Dear all, HRA exemption is monthly basis or yearly basis.
Replies (16)
Quick Summary
This discussion clarifies the calculation of House Rent Allowance (HRA) exemption under Section 10(13A) of the Income Tax Act. While HRA is received monthly, the exemption calculation is based on the actual rent paid for each month, meaning periods without rent payment will have zero exemption. The overall claim is made annually, but the underlying calculation considers monthly rent paid and received against specific rules involving salary and rent paid.

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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