Max Payne (employed) (2574 Points)
26 November 2010Hi friends,
Employee is in two employments simultaneously.
He is getting HRA from both employers simultaneously.
Is it correct to compute HRA exemption u/s 10(13A) employer wise when the employments are simultaneous?
From my limited knowledge if HRA is received from more than one employer, then it has to be worked out in respect of each employment.....
Pls share your views.
Thanks and regards
CMA.Baskar.V
(Cost Accountant)
(400 Points)
Replied 26 November 2010
Dear GK,
If employee receives HRA more than one employer, he has to compute total HRA received from both employer after that income tax exemption calculation
like
1. Total HRA received from Both employer
2. Rent Paid - 10% of Basic Salary (Total of Basic recevied from Both employer)
3. 40% / 50% of Salary (Total of Basic received from Both employer)
The above calculation applicable only if employee getting HRA from both employers simultaneously.
If employee working more then one employer during last PY (not simultaneously), then we need to calculate separately according time period and rent paid amount.
Pawan Kr. Tomar
(CA)
(169 Points)
Replied 26 November 2010
Calculation does not matter, exemption u/s 10(13A) does not exceed:
1. HRA actually received (total of all employer)
2. Rent paid in excess of 10% of salary
3. 50%/40% of salary (total of salary of all employment or calculate seprately and add then)
Vikas Gupta
(CHARTERED ACCOUNTANT)
(16295 Points)
Replied 26 November 2010
| Originally posted by : CMA.Baskar.V | ||
 |
Dear GK, If employee receives HRA more than one employer, he has to compute total HRA received from both employer after that income tax exemption calculation like 1. Total HRA received from Both employer 2. Rent Paid - 10% of Basic Salary (Total of Basic recevied from Both employer) 3. 40% / 50% of Salary (Total of Basic received from Both employer) The above calculation applicable only if employee getting HRA from both employers simultaneously. If employee working more then one employer during last PY (not simultaneously), then we need to calculate separately according time period and rent paid amount. |
 |
| Originally posted by : CMA.Baskar.V | ||
|
|
Dear GK, If employee receives HRA more than one employer, he has to compute total HRA received from both employer after that income tax exemption calculation like 1. Total HRA received from Both employer 2. Rent Paid - 10% of Basic Salary (Total of Basic recevied from Both employer) 3. 40% / 50% of Salary (Total of Basic received from Both employer) The above calculation applicable only if employee getting HRA from both employers simultaneously. If employee working more then one employer during last PY (not simultaneously), then we need to calculate separately according time period and rent paid amount. |
|
I agree with Bhaskar sir.........
CAclubindia
