Mohd. Hammad (CA Article ) (103 Points)
07 October 2011
Whether House rent allowance specified u/s 10(13A) of Income Tax Act, should be calculated on yearly basis or monthly basis?
Plz clear my doubt and provide reference also in the respect of answer.
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 07 October 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)
(1580 Points)
Replied 07 October 2011
Since the factors like
(A) Rent
(B) Place of Location
(C) HRA recieved
(D) Salary
changes we have to calculate on monthly basis
Swapnil Jain
(Finance - FP&A)
(564 Points)
Replied 09 October 2011
HRA exemption calculation is dependent on Four variable.
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
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