Income Tax Calculation of House Rent Allowance U/S 10 (13A)
For Assessment Year 2018-19
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 sixty years (With valid PAN furnished to employer).
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Salary | 3,50,000 |
| 2 | Dearness Allowance | 2,00,000 |
| 3 | House Rent Allowance | 1,40,000 |
| 4 | House rent paid | 1,44,000 |
| 5 | General Provident Fund | 36,000 |
| 6 | Life Insurance Premium | 4,000 |
| 7 | Subscription to Unit-Linked Insurance Plan | 50,000 |
Computation of total income and tax payable thereon
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Salary + Dearness Allowance + House Rent Allowance 3,50,000+2,00,000+1,40,000 = 6,90,000 | 6,90,000 |
| 2 | Total Salary Income | 6,90,000 |
| 3 | Less: House Rent allowance exempt U/s 10(13A): Least of: | 89,000 |
| (a). Actual amount of HRA received=1,40,000
(b). Expenditure of rent in excess of 10% of salary (including D.A. presuming that D.A. is taken for retirement benefit) (1,44,000-55,000) = 89000 (c). 50% of Salary(Basic+ DA) 2,75,000 |
||
| Gross Total Income | 6,01,000 | |
| Less: Deduction U/s 80C
(i) GPF Rs.36,000/- (ii) LIC Rs. 4,000 (iii) Investment in Unit-Linked Insurance Plan Rs.50,000/- Total =Rs.90,000/- |
90,000 | |
| 3 | Total Income | 5,11,000 |
| Tax payable | 14700 | |
| Add:
(i). Education Cess @2% (ii). Secondary and Higher Education Cess @1% |
294
147 |
|
| Total Income Tax payable | 15141 | |
| Rounded off to | 15140 |