Section 10(13a) and 80gg

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shyam (Querist)
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25 July 2013 If employee receive HRA of Rs.40000 (Taxable HRA is Rs. 35000) and total salary Rs.300000 (including HRA of Rs.40000)and TDS deducted on Rs.300000 is Rs.10000.
In the above case TDS deducted on Rs.300000 which includes Gross HRA of Rs.40000 but not Taxable HRA of Rs.35000. In this case employee can (1)get deduction U/C 80GG or
(2) he can get excemption U/S 10(13A) or
(3) 1 or 2 which ever is beneficial

CA Sourabh Agarwal

CA Sourabh Agarwal (Expert)
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25 July 2013 If HRA is received, then it must get exemption u/s 10(13A) only.