House Rent Allowance Exempt – 10(13A)

The least of the following three is exempted under HRA:
  •             Actual HRA received : Rs. X
  •            Amount rent paid in excess of 10% of Salary : Rs.Y
  •            50% of Basic Salary (including DA) in Metro Cities or 40% of Basic Salary (including DA) in other cities : Rs.Z

Download Automatic House Rent Exemption Calculator U/s 10(13A)

Least of X, Y Z is exempted. Read with Rule 2A of IT Rules 1962
NOTE: According to the notification issued by the Income tax department, now landlord’s PAN card is a must to get income tax deduction against HRA allowance. One will have to submit PAN card as a proof if he is applying for more than 15000 per month.

 

Download Automated Form 16 Part B for FY 2014-15 ( This Utility Can Prepare at a time 100 employees Form 16 Part B] 

S.No
I.T. Sec.
Nature of Deduction
Amount of Deduction
 1
 80 CCE
Limit on Deduction u/s.80C, 80CCC & 80CCD
Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs. 1,00,000 (Employer contribution is deductible without any limit from fy 2011-12)
 1a)
 80 C
Life Insurance Premium, PF, PPF, NSC, ELSS, Units of Mutual Fund referred to u/s.10(23D), Tuition Fees(max. 2 Children), Repayment of Principal of Housing loan, Bank Fixed Deposit of 5 yrs period, notified Bonds of NABARD, Deposit in an account under Senior Citizens Savings Scheme rules, 5 year time deposit in an account under Post Office Time Deposit Rules, 1981 etc.
Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs. 1,00,000 (Employer contribution is deductible without any limit from fy 2011-12)
 1b)
 80 CCC
Premium paid towards approved Pension Fund (like LIC’s Jeevan Suraksha) max. 1 lakh.
Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs. 1,00,000 (Employer contribution is deductible without any limit from fy 2011-12)
 1c)
 80 CCD
Contribution to Central Government Pension Schemes. Up to 10% of salary with matching contribution from Government.
Maximum overall Deductions allowed u/s. 80C, 80CCC & 80CCD is Rs. 1,00,000 (Employer contribution is deductible without any limit from fy 2011-12)
 2a)
 80 D
 Medical Insurance Premium paid by an individual/HUF by any mode of payment other than cash to effect or keep in force an insurance on the health of the assessee (self) or his family (spouse & dependent children) for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority or any contribution made to the Central Government Health Scheme.
 Up to Rs.15,000
 2b)
 80 D
 Medical Insurance Premium paid by an individual/HUF by any mode of payment other than cash to effect or keep in force an insurance on the health of his/her parent or parents for policies taken from General Insurance Corporation /other approved Insurance Regulatory and Development Authority or any contribution made to the Central Government Health Scheme.
 Up to Rs.15,000
 2c)
 80 D
 For Senior Citizens
 Up to Rs.20,000
 3
 80 DD
(a) Any expenditure for Medical, Nursing & Rehabilitation incurred on dependant suffering from permanent disability including blindness, mental retardation, autism, cerebral palsy or multiple disabilities
(b) Deposits under LIC, UTI’s Scheme & other IRDA approved insurers for the benefit of physically handicapped dependent

 Rs. 50,000 (Rs.1,00,000 if the disability is severe exceeding 80%)
 4a)
 80 DDB
Actual expenditure incurred on Medical treatment of Self or dependant or a member of HUF suffering from terminal diseases like Cancer, AIDS, Renal failure etc.
  Up to Rs.40,000
 4b)
 80 DDB
 For Senior Citizens(self or dependent on whom expenditure on medical treated is taken)
 Up to Rs.60,000
 5
 80 E
 Interest on loan taken from Financial/Charitable Institutions for Self/Spouse/Children for pursuing Higher Education (for a max. period of 8 yrs)
 Actual Interest repaid
 6a)
 80 G
Donations made to National Defence Fund, Prime Minister’s Relief Fund, approved Funds of repute

 6b)
 80 G
Donations made to Jawaharlal Memorial Fund, PM’s Drought Relief fund, Any approved Charitable Institution/Trust, Religious Institutions, a corporation established by the Government for promoting interest of the members of a Minority Community
50% of Donation restricted to 10% of Adjusted Gross Total Income
 7
 80 GG
Deduction in respect of rents paid, provided the assessee is not in receipt of HRA and no house is owned by self, spouse, minor child or HUF in the place of work subject to filing of declaration in Form No.10BA
25% of income or rent paid in excess of 10% of income or ceiling of Rs.24,000 p.a whichever is less
 8
 80 U
Persons suffering from Permanent Physical Disability as specified in Rule 11D
 Rs.50,000 (Rs.1,00,000 in case of severe disability)