Taxexcel: House Rent Exemption Calculator U/s 10(13A)

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Saturday 1 September 2018

Download Automatic House Rent Exemption Calculator

Under Section 80GG, an Individual can claim the deduction for the rent paid even if he does not get House Rent Allowances. Not many people are aware of this deduction.

Section 80GG allows the Individuals to a deduction in respect of house rent paid by him for his own residence.
Such deduction is permissible subject to the following conditions:-

The Individual has not been in receipt of any House Rent Allowance from his employer specifically granted to him which qualifies for exemption under section 10(13A) of the Act;
The Individual files the declaration in Form No. 10BA. Download Excel Based Form 10 BA
The employee does not own:

A) any residential accommodation himself or by his spouse or minor child or where such Individual is a member of a Hindu Undivided Family, by such family, at the place where he ordinarily resides or performs duties of his office or carries on his business or profession; or

B ) at any other place, any residential accommodation being accommodation in the occupation of the Individual, the value of which is to be determined under Section 23(2)(a) or Section 23(4)(a) as the case may be.

He will be entitled to a deduction in respect of house rent paid by him in excess of 10% of his total income, subject to a ceiling of 25% thereof or Rs. 2,000/- per month, whichever is less. The total income for working out these percentages will be computed before making any deduction under section 80GG. In other words, eligibility will be the least amount of the following:-

Rent paid minus 10 percent the adjusted total income.
Rs 2,000 per month.
25 percent of the adjusted total income.

The deduction will also not be available to an assessee if any residential accommodation is owned by the assessee at any other place, which he is occupying, and the concessions in respect of self-occupied house are claimed by him for that property. In such a case, no deduction will be allowed in respect of the rent paid, even if the person does not own any residential accommodation at the place where he ordinarily resides.

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Sunday 14 August 2016

Calculation and Taxability of House Rent Allowance (HRA). Today we are Providing a Premium guide on Calculation and Taxability of House Rent Allowance (HRA). Now you can Find Best Notes For Calculation of House Rent Allowance. House Rent Allowance [Section 10(13A) & Rule 2A] Calculation and Tax Liability. How To Compute House Rent Allowance. We are Providing Full Computation for Calculation of House Rent Allowance for 2014-15. Now You can Scroll Down Below And See Full guide on Calculation and Taxability of House Rent Allowance (HRA), House Rent Allowance ( HRA) Calculate in India, New House Rent allowance Exemption Rule, How Much House Rent Allowance is Exempt, House Rent Allowance Exemption Calculator, House Rent Allowance ( HRA) Rules and Tax Exemption, House Rent Allowance Act, House Rent Allowance Meaning, House Rent Allowance for central Government Employees. Now you can scroll down below and check complete details regarding “Calculation and Taxability of House Rent Allowance (HRA)”

Download the Automatic House Rent Exemption Calculator in Excel U/s 10(13A)

House Rent Allowances is given by the employer to the employee to meet the expenses in connection with Rent of the accommodation which the employee might have to take. House Rent Allowance is taxable under the head salary to the extent it is not exempt under section 10(13A) of the Act.

Exemption of H.R.A.

House rent allowance is exempt under section 10(13A) read with rule 2A, to the extent of the minimum of The following three amounts:

(a) Actual HRA received by the employee in respect of the “Relevant Period”

(b) Excess of rent paid for the accommodation occupied by him over 10% of the salary for the “Relevant Period” (Rent Paid -10% Salary)

(c) 50% of salary where the accommodation is situated at Mumbai, Calcutta, Delhi or Chennai and 40% Of salary where the house is situated at any other place for the “Relevant Period”

The minimum of the above three amounts shall be exempt from tax and the balance shall be taxable and thus included in the gross salary of the employee.

Important Note

Condition: Under Sec 10(13A) an employee who is in receipt of House Rent Allowance can claim exemption, if he does not live in his own house, and pays rent in excess of 10% of his salary for his residential accommodation.

No entitlement of exemption: In the following cases, exemption of HRA is not available to employee:-

(a) When an employee stays in his own house.

(b) When an employee does not pay any rent or incur any expenditure towards rent.

Relevant Period: Relevant period means the period during which the said accommodation was occupied by the Employee during the previous year.

Meaning of Salary: Total

1. Basic Salary

2. Dearness Allowance (if forming part of retirement benefits)

3. % based commission on turnover.

Factors affecting exemption: Exemption of HRA depends on the following factors:

(a) Salary of the employee

(b) HRA Received (c) Rent Paid (d) Place of Residence

Where these four factors continue to be same throughout the year, the exemption u/s 10(13A) should be calculated

On “Annual basis”. However, if there is any change in respect of any of the above factors then calculation should be done in “Monthly basis”

Example of H.R.A. Calculation :-

If any allowance is given for House rent than it is called H.R.A.

Exemption of H.R.A. Under Section 10(13A) & Rule 2A:- If Employee receive H.R.A. than it will be taxable under section 10(13A) & Rule 2A as under-

A	Actual H.R.A. received	******
B	Rent Paid – 10% of Salary	******
C	40% and 50% of Salary	******
	Which ever is less	******

Note-1 40% and 50% depends on Rental place not on place of service

Note-2 50% of salary where the accommodation is situated at Mumbai, Calcutta, Delhi or Chennai and 40% Of salary where the house is situated at any other place.