Income Tax Section 10(13A) Exemption of House Rent Allowance (HRA) . While calculating Income Tax, Most of us have some doubts on calculation of HRA (House Rent Allowance). Income Tax Dept has mentioned so many times on wrong calculation of HRA by employees while submitting the returns. Hence let us discuss the Calculation of House Rent Allowance Exemption in Income Tax as per Income Tax Act 1961, Section 10(13A), Read with Rule 2A of Income Tax Rules 1962. HRA Calculation Calculator in Telugu
Illustrative calculation of House Rent Allowance U/s 10 (13A)in respect of residential accommodation situated in Delhi in case of an employee below the age of 60 years (With valid PAN furnished to employer).
Particulars as follows:
1 Salary =2,50,000
2 Dearness Allowance =1,00,000
3 House Rent Allowance =1,40,000
4 House rent paid =1,44,000
HRA Exemption Rule as per Income Tax Act Section 10(13A)
The Words mentioned in the Income Tax Act 2022-23 as follows:
Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. According to Rule 2A of the Rules, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the following:
- (a) The actual amount of such allowance received by the assessee in respect of the relevant period i. e. the period during which the accommodation was occupied by the assesse during the financial year; or
- (b) The actual expenditure incurred in payment of rent in excess of 1/10 of the salary due for the relevant period; or
- (i) Where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the employee for the relevant period; or (ii) Where such accommodation is situated in any other places, 40% of the salary due to the employee for the relevant period,
For this purpose, "Salary" includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.
It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax.
The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.
It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax.
The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.
Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3000/- per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.
Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.
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Clarification by Addl Commissioner of IT, Hyd, as per CIT-14/TDS-State Govt/2012-13 Dated 14.2.13- HRA granted to an employee who is residing in his own house/flat owned by self is not exempt from income-tax.
- Salaried employees paying rent upto Rs.3000 per month will be exempted from production of rent receipt.
Calculation of HRA Exemption:
From the above Rules it is clear that For Calculation of HRA Exemption we should take the LEAST of the following Three:
1.Actual Amount of HRA ReceivedThe Least of the above three will be taken House Rent Allowance Exemption.
2.Actual Rent Paid Minus (-) 10% of Basic Salary (Here Basic Salary means Basic Pay + DA)
3.40% of Basic Salary (50% of Basic Salary in Metro Cities).
Illustrative calculation of House Rent Allowance U/s 10 (13A)in respect of residential accommodation situated in Delhi in case of an employee below the age of 60 years (With valid PAN furnished to employer).
1 Salary =2,50,000
2 Dearness Allowance =1,00,000
3 House Rent Allowance =1,40,000
4 House rent paid =1,44,000
Now Calculation of HRA Exemption as follows:
Salary + Dearness Allowance + House Rent Allowance= (2,50,000+1,00,000+1,40,000) = 4,90,000
Total Salary Income = 4,90,000
Less: House Rent allowance exempt U/s 10(13A):
Least of:- (a). Actual amount of HRA received= 1,40,000
- (b). Actual Rent paid minus 10% of salary (including D.A) = (1,44,000-35,000) = 1,09,000
- (c). 50% of Salary (Basic+ DA) = 1,75,000.
Least of the above Three is 1,09,000 Hence it will be taken for HRA Exemption
Gross Total Income = 4,90,000-1,09,000 = 3,81,000.
HRA Calculation in Telugu under Section 10(13A) and Section 80 GG
✔️ఇంటి అద్దె మినహాయింపు : HRA మినహాయింపులకు రెండు సెక్షన్ లు ఉన్నాయి
- 1. సెక్షన్ 10 (13ఎ)
- 1. సెక్షన్ 80 GG
💥HRA సెక్షన్ 10 (13ఎ) : ఈ జీతం నుండి హెచ్ఆర్ఏ పొందుతున్న ఉద్యోగులు అందరికీ వర్తిస్తుంది.
సెక్షన్ 10 (13ఎ) ప్రకారం ఉద్యోగి అద్దె ఇంట్లో ఉంటే అతడు పొందే ఇంటి అద్దె ఎలవెన్సు మినహాయింపుగా క్రింది మూడింట్లో ఏది తక్కువైతే ఆ మొత్తాన్ని అనుమతిస్తారు.
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- 👉1. వాస్తవంగా పొందిన ఇంటి అద్దె ఎలవెన్స్ (జీతం నుండి పొందిన HRA)
- 👉2. (చెల్లించిన అద్దె - 10% ఆఫ్ (పే+డి. ఏ) ) (అందరూ ఎక్కువగా మినహాయింపు పొందే అంశం)
- 👉3. పే+డి. ఏ లో 40 శాతం (ముంబై, కోలకత్తా, ఢిల్లీ, చెన్నై నగరాలలో వారికి 50శాతం)
ఉద్యోగి స్వంత ఇంట్లో నివసిస్తున్నా, రెంట్ ఫ్రీ క్వార్టర్లో నివసిస్తున్నా ఇంటి అద్దె మినహాయింపు వర్తించదు.
వీరి ఇంటి అద్దె అలవెన్సును ఆదాయంలో భాగంగా చూపించాలి.
ఉదా:
ఒక ఉద్యోగి సం పే : 5,00,000; డి. ఏ: 1,00,000; హెచ్ ఆర్ ఏ : 60,000 అనుకోని, అతను నెలకు 6,000 అద్దె ఇంట్లో ఉంటున్నాడు అనుకుంటే,
పైన చూపిన దాని ప్రకారం ఇంటి అద్దె మినహాయింపు లెక్కింపు విధానం :
👉1. వాస్తవంగా పొందిన ఇంటి అద్దె ఎలవెన్స్ : 60,000
👉2. చెల్లించిన అద్దె - 10% ఆఫ్ (పే+డి. ఏ)
(పే+డి. ఏ) లో 10% = (5,00,000+1,00,000) * 10% = 60,000
నెలకు 6,000 చొప్పున ఏడాదికి చెల్లించిన అద్దె = 72,000
(పే+డి. ఏ) నకు 10శాతము కన్నా ఎక్కువ చెల్లించిన అద్దె ; 72,000- 60,000 = Rs 12,000
👉3. పే+డి. ఏ.లో 40 శాతం = 6,00,000 * 40% = 2,40,000
👉. పై మూడింటిలో 2 వ అంశం తక్కువగా ఉంది. కాబట్టి, Rs 12,000 ఇంటి అద్దె మినహాయింపు అవుతుంది
💥HRA సెక్షన్ 80GG: ఈ సెక్షన్ జీతంలో హెచ్ఆర్ఏ లేని ఉద్యోగులు, పెన్షనర్ల లకు వర్తిస్తుంది.
పెన్షన్ తీసుకుంటున్న ట్రెజరీ పరిధిలో పెన్షనర్కుగాని, స్ఫౌజుకుగాని వారి మైనరు పిల్లల పేరగాని సొంత ఇల్లు వుండరాదు.
10 బిఏ ఫారంలో డిక్లరేషన్ ఇవ్వాలి.
ఈ క్రింది మూడింటిలో తక్కువ మొత్తాన్ని మినహాయింపుగా పొందగలరు.
👉HRA సెక్షన్ 80GG లెక్కింపు
- 1) మొత్తం ఆదాయంలో 25శాతం
- 2) నెలకు రు.5000/-లు చొ॥న 12 నెలలకు=రు. 60,000/- (Popular)
- 3) 10 శాతం ఆదాయం కంటే ఎక్కువగా చెల్లించిన అద్దె.
💥Note:
- ఇంటి అద్దె మినహాయింపు విషయంలో నెలకు రూ.3000 మించి అద్దె చెల్లిస్తున్నట్లయితే, యజమాని నుండి రసీదు తీసుకొని తప్పక డిడిఒకు సమర్పించాలి.
- అలాగే ఇంటి అద్దె సం॥కి ఒక లక్ష మించి యుంటే ఇంటి యజమాని నుండి రసీదు మరియు అతని పాన్ నెంబరు తప్పక డిడిఒకు సమర్పించాలి.
