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Regarding salary

30 September 2019

how to divide DA Basic HRA and other allowence is there any fixed percentage for example I am in staying in own house can I claim HRA.... if I am not claiming HRA my basic will increase??

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13 Replies

Sukhleen Kaur (20 Points)
Replied 30 September 2019

U can not claim and no deduction in salary is allowed

1 Like

Kapadia Pravin (17264 Points)
Replied 30 September 2019

You can not get HRA Deduction since you do not pay any rent.
Break up of salary -employer decides and for any changes in break up , discuss with Employer.

1 Like

sabyasachi mukherjee (27858 Points)
Replied 30 September 2019

@ ravi
Sec 10(13A) Rule 2A
provide for three conditions: lowest of the following three
1.
rent paid
2. rent paid in excess of 10% of salary.
3. another 3rd condition.

Kapadia Pravin (17264 Points)
Replied 01 October 2019

Sabyasachi - Mr. Ravi stays in his own house. (as per query) . Where to use your reply ???

sabyasachi mukherjee (27858 Points)
Replied 01 October 2019

@ kapadia sec 10(13A) PROVIDES THESE CONDITIONS.
RAVI YOU CANNOT CLAIM ANY EXEMPTION.

Suresh Thiyagarajan (Student) (3986 Points)
Replied 01 October 2019

1. Break up of salary will be available in your salary sheet.
2. HRA will be exempted u/s 10(13A), only if you're paying rent. Otherwise, the entire amount paid as HRA will form part of salary and will be taxable.
3. There is no criteria as such, that not claiming HRA will increase your basic salary. It depends upon the pay structure offered by your employer.
Please correct me if the above solution has an alternative view.

sabyasachi mukherjee (27858 Points)
Replied 01 October 2019

Mr.Suresh its ok.
Now if an assesse stays in his house and pays rent to his old father.

what will happen?

Babua Banerjee (Accountant Junior Tax Practitioner) (123 Points)
Replied 01 October 2019

Mr. sabyasachi, if he stays in his own house.. how can he pays rent ??

Sukhleen Kaur (20 Points)
Replied 01 October 2019

The case is when living with parents and salaried person transfers monthly rent to his father acct then he can claim hra

sabyasachi mukherjee (27858 Points)
Replied 01 October 2019

Yes why not?
he is not staying in his own house but owned by his relative..

Suresh Thiyagarajan (Student) (3986 Points)
Replied 01 October 2019

1. The wordings gave in sec 10(13A) is "residential accommodation occupied by the assessee". So rent paid by the assessee for his own residential accommodation will be covered under this section.
2. Son staying in his own house and paying rent for his father's accommodation will not qualify for exemption u/s 10(13A).
3. Exemption u/s 10(13A) will not be available to son.
Please correct me if the above solution has an alternative view.