Section 10 13a Of Income Tax

Deduction under section 10 13a is allowed only if the employer is getting hra from their employer.

Section 10 13a of income tax. Any special allowance specifically granted to an assessee by his employer to meet expenditure actually incurred on payment of rent by whatever name called in respect of residential accommodation occupied by the assessee to such extent as may be prescribed having regard to the area or place in which such accommodation is situated subject to other relevant considerations. However income tax act provides a deduction of hra under section 10 13a subject to certain limits. The place of residence is important.

Self employed individuals are not allowed to take any deduction under this section. Section 13a of income tax act 1961 2017 provides for special provision relating to incomes of political parties. If the employee is not paying any rent in any form the whole hra amount is taxable.

Section 10 13a of the income tax act 1961 says. Although it is a part of your salary hra unlike basic salary is not fully taxable. Thus when the employees receive the house rent allowance and used it for meeting the expenses related to house rent of the accommodation taken at the place of posting then the exemption under section 10 13a of income tax act is allowed.

A deduction is permissible under section 10 13a of the income tax act in accordance with rule 2a of the income tax rules. You can claim exemption on your hra under the income tax act if you stay in a rented house and get a hra from your employer. Such allowance is taxable in the hand of the employee.

Section 13a of income tax act 1961 2017 incomes of political parties chapter iii sections 10 13b of income tax act 1961 deals with provisions related to incomes which do not form part of total income. Always keep proper rent receipt from the landlord the income tax officer may ask any time. The amount of hra exemption is deductible from the total income before arriving at a taxable income.

Section 10 13a of the income tax act the salaried employees are entitled to receive the allowance on rent of the house which is exempted from tax. The special allowance is given under section 10 14 of income tax act the exemption of the special allowance under the 10 14 can be classified into 2 parts. The hra deduction is based on salary hra received the actual rent paid and place of residence.