Income Tax Calculation For House Rent Allowance – U/s 10 (13A)



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 7,00,000
2 Bonus 1,40,000
3 Free gas, electricity, water etc. (Actual bills paid by company) 40,000
4(a) Flat at concessional rate (for tenmonth).  @Rs.36000/month 3,60, 000
4(b Hotel rent paid by employer (for two month) 1,00,000
4(c) Rent recovered from employee. 60,000
4(d) Cost of furniture. 2,00,000
5 Subscription to Unit Linked Insurance Plan 50,000
6 Life Insurance Premium 10,000
7 Contribution to recognized P.F. 42,000

COMPUTATION OF TOTAL INCOME AND TAX PAID THEREON

S.NO. PARTICULARS RUPEES
1 Salary 7,00,000
2 Bonus 1,40,000
3 Total Salary(1+2) for Valuation of Perquisites 8,40,000
VALUATION OF PERQUISITES
4(a) Perquisite for flat:
Lower of (15% of salary for 10 months=Rs.1,05,000/-) and (actual rent paid= Rs 3,60,000) i.e. Rs. 1,05,000

1,38,600

4(b) Perquisite for hotel :
Lower of (24% of salary of 2 months=Rs 33,600) and (actual payment= Rs 1,00,000) i.e. Rs 33,600
4(c) Perquisites for furniture(Rs.2,00,000) @ 10% of cost     Rs. 20,000
4(c)(i) Total of [4(a)+(b)+(c)] (1,05,000+ 33,600+ 20,000)Rs.158,600
Less: rent recovered  (-)Rs 60,000    =     98600                                                                          
4(d) Add
Perquisite for free gas, electricity, water etc. Rs.40,000 (+) Rs 98,600 [4(c)(i)] = Rs1,38,600Total perquisites
5 Gross Total Income (Rs.8,40,000+ 1,38,600) 9,78,600
6 GROSS TOTAL INCOME 9,78,600
7 Less: Deduction U/s 80C:

(i).  Provident Fund (80C)
42,000
(ii).  LIC (80C)

:10,000

(iii). Subscription to Unit Linked Insurance Plan(80C)
:50,000/-
Total                                                x
1,02,000
Restricted to Rs 1,02,000 u/s 80C

1,02,000

8 Total Income 8,76,600
9 Tax Payable 87,820
10 Add:
(i).Education Cess @2% 1756
(ii). Secondary and Higher Education Cess @1% 878
11 Total Income Tax payable 90,454
12 Rounded off to 90,450

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You might also like
Leave A Reply

Your email address will not be published.

error: Content is protected !!