Whether house rent allowance specified u/s 10(13a) of income

Tax queries 745 views 4 replies

Mohd. Hammad

CA Article

103 Points Joined December 2008

Whether House rent allowance specified u/s 10(13A) of Income Tax Act, should be calculated on yearly basis or monthly basis?

In my opinion it should be calculated on periodically basis as the input factor changes. but i dont have any support in respect of my opinion.

Plz clear my doubt and provide reference also in the respect of answer.

Replies (4)

C.A SHASHANK GOYAL

Chartered Accountant

362 Points Joined May 2011

Hi , I am of the opinion that in applying the provision of section 10(13A) . there is no such requirement of applying of periodical basis , as for calculation of limit we need to consider only the hra received during the period and salary for that period.

Rahul

Chartered Accountnat CS

1585 Points Joined February 2011

Since the factors like

(A) Rent

(B) Place of Location

(D) Salary

changes we have to calculate on monthly basis

Guest

correct rahul https://taxbykk.blogspot.com/

Swapnil Jain

Finance - FP&A

564 Points Joined January 2011

HRA exemption calculation is dependent on Four variable.

House rent allowance received
House rent paid
Salary
Location of the house.

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

1.House Rent allowance (HRA) received.
2.50% 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.
3.Rent paid in excess of 10 % of salary.

HRA exemption calculation is depended on four variable as shown above,if all of these remains same in a year then you can calculated it on yearly basis otherwise for each set of of variable ,you have to do separate calculation .suppose DA is changed then you have to calculate separate calculation