Section 10 13a

A deduction is permissible under section 10 13a of the income tax act in accordance with rule 2a of the income tax rules.

Section 10 13a. Self employed individuals are not allowed to take any deduction under this section. 1 whenever an insurer contests an initial liability claim for benefits submitted on a form prescribed by the department by failing to commence the compensation requested within twenty one days of receipt of such claim and then at any time prior to a conference held under section ten a the insurer agrees to pay with or without prejudice the compensation claimed to be due said insurer shall pay an attorney s fee to the employee s counsel in the amount of seven hundred. Actual hra received rent paid minus 10 of the basic salary 50 of the basic salary if you live in delhi mumbai kolkata and chennai or 40 of the basic salary if you live in any other city.

The place of residence is important. Here it can be noted that the factors like salary place of posting along with rent paid and house rent allowance received has been changed during the previous year 2018 19. Under section 10 13a the lowest amount of the following is tax exempt.

However income tax act provides a deduction of hra under section 10 13a subject to certain limits. The hra deduction is based on salary hra received the actual rent paid and place of residence. As per the section 10 13a by the income tax act the following amount of deduction from house rent allowance will be deducted from the taxable amount.

If the employee is not paying any rent in any form the whole hra amount is taxable. 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. The amount which is not to be included in the total income of an assessee in respect of the special allowance referred to in clause 13a of section 10 shall be a the actual amount of such allowance received by the assessee in respect of the relevant period.

Such allowance is taxable in the hand of the employee. Always keep proper rent receipt from the landlord the income tax officer may ask any time. The house rent allowance received by the employee rent paid by the employee from 10 percent of the main salary 40 percent of the salary deducted.

House rent allowance hra is an allowance paid by an employer to its employees for covering their house rent. Deduction under section 10 13a is allowed only if the employer is getting hra from their employer. However income tax act provides a deduction of hra under section 10 13a subject to certain limits.