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Should HRA received be clubbed for tax calculation?
Suppose husband and wife are working under state govt and there is upper limit on total amount of HRA received by them together. Husband received slightly higher HRA and the rest (max-husband's HRA) is received by the wife. They reside in rented accommodation and the husband pays rent (in cash). When the husband calculates tax liability, should the HRA exemption be done on the basis of actual HRA received by him alone or on the basis of total HRA they receive together?
Replies (1)
HRA is exempt from the tax u/s 10(13A) as least of the following:
40% of salary
HRA Received
Rent paid in excess of 10% of salary.
Hence HRA received and disclosed in the payslip of each of the husband & wife will only only be considered for calculating the exmeption.
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