HRA exemption 10(13A)
Siva Raj (358 Points)
24 March 2021
Dear all, HRA exemption is monthly basis or yearly basis.
16 Replies
Varalakshmi
(Student)
(210 Points)
Replied 24 March 2021
Calculated on yearly basis...but when rent is paid in few month's only due various reasons( newly took rent from mid of year etc). it can be calculated from that month
CA Puja Sharma
(Chartered Accountant)
(5010 Points)
Replied 24 March 2021
HRA is received every month. The deduction will be claimed all together for the whole of the year at the time of return filing, However every month when the employer will deduct the tax he will make the deduction keeping into consideration the HRA deduction.
Siva Raj
(358 Points)
Replied 24 March 2021
F.y.20-21, rent paid is zero from may 20 to Dec 20 remaining months only paid. so HRA exemption takes zero for may 20 to Dec 20.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 25 March 2021
HRA exemption u/s 10(13A) can be availed in respect of the month for which rent has actually been paid. In this case, exemption would be zero from May to Dec20.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 25 March 2021
While calculating income from salary HRA shall be calculated on the basis of rent paid per month from that exemption u/s 10(13A)
shall be deducted:
Actual HRA Received :
Less : Exempt u/s 10(13A) lower of the following :
i) Actual HRA Received
ii)Rent paid less 10% of salary
iii) 50% of salary
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 25 March 2021
In this case, you need calculate on monthly basis.
Murtaza I Bhagat
(Tax & Finance Consultant)
(10528 Points)
Replied 26 March 2021
Calculation on monthly basic but you need to take exemption on yearly basic.
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