House rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2010 In a company the salary structure is as follows:

Basic:51% of Gross salary
Reimbursement: rest 49% of Gross Salary

My question is,

The employee of this company how get the House rent deduction at the time of computation of tax?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 April 2010 Limits for the purposes of section 10(13A).

2A. The amount which is not to be included in the total income of an assessee in respect of the special allowance referred to in clause (13A) of section 10 shall be—

(a) the actual amount of such allowance received by the assessee in respect of the relevant period; or

(b) the amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or

3[(c) an amount equal to—

(i) where such accommodation is situate at Bombay, Calcutta, Delhi or Madras, one-half of the amount of salary due to the assessee in respect of the relevant period; and

(ii) where such accommodation is situate at any other place, two-fifth of the amount of salary due to the assessee in respect of the relevant period,]

(d) 4[***]

whichever is the least.

Explanation : In this rule—

(i) “salary” shall have the meaning assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule;

(ii) “relevant period” means the period during which the said accommodation was occupied by the assessee during the previous year.]

(iii) 5[***]

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2010 Thanks, for your reply.

But, if you please explain with an example, it would be very much helpful for me.

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