Questions TAXABILITY OF SALARY ALLOWANCES

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SUDHIRA PRUSTI

Category : Income t.., Exempt G.., Taxabili..,

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December 14, 2020 6:38 pm

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Income tax

My father got retirement benefits this year . The retired benefits are
1. Leave encashment from government full exempt tax
2. Gratuity
3. Commuted Pension

his annual pension for that financial year was Rs 293079

When I want to claim these exempts retirement benefits under section 10 (10A) , 10...

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Ajay Kumar Verma

Category : HRA Allo..,

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August 8, 2019 10:05 am

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HRA Allowance U/s 10 (13A)

Dear sir kindly solve my query and make a video..........In the last financial year I was renting and I bought home in the same financial year, I took home loans and its EMI started from July 2018 and I got possession in February 2019. Therefore my query, can I get the benefit of both HRA and home l...

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Amlan Dutta

If you stay in your own house, you won't be getting HRA tax exemption benefit but you will be still getting HRA but whole of it shall be taxable since you are not staying on rent anymore to claim HRA exemption...
Say you are getting 10,000 Rs per month HRA i.e 1.2 lakhs yearly , so you will continue getting it but now whole 1.2 lakhs gets added to chargeable income when you stay in your own house ..

Now, when you stay on rent based on rent values , a part of HRA gets exempt ...say for example 20,000 Rs...Then only 1 lakh from HRA allowance gets added to your chargeable income
Why this happens is because the HRA exemption is calculated based on the rent paid( if you study the formula for computation for HRA ) ...in absence of it, whole HRA paid becomes taxable

Note that HRA allowance falls under income from salary head ...

next whether you are eligible home loan deduction benefit surely you are and for a self occupied house the loan outgo ( interest) until upper cap for 2 lakh rs is the present limit u/s 24 B..note that this falls under income from house property head ...neither has any bearing on each other ......Section 80 EEA is saving section for home loan interest however subject to certain condition . It is not for FY 2018 19 and has been introduced in Budget 2019 i.e FY 2019 20 ...
If yours is a affordable house (self occupied/rental), then further to the upper cap of 2 lakhs home loan interest, you can now avail a additional home loan interest benefit until 1.5 lakhs under section 80 EEA ................ so say your home loan interest repayment is 3 lakhs , then in income from house property you can claim benefit until 2 lakh rs U/s 24 b and you can further avail benefit till 1.5 lakhs under section 80 EEA.
Definitions for affordable housing based on the valuation and the carpet area of the house
1.) Stamp Duty Value is up to Rs 45 Lakh.
2.) In metropolitan cities the carpet area of up to 60 sq m (645 sq ft)
3.) In non-metropolitan cities the carpet area of up to 90 sq m (928 sq ft)
Note: Metropolitan cities are Chennai, Bengaluru, Hyderabad, Mumbai, Kolkata and Delhi NCR.]

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August 8, 2019

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Ajay Kumar Verma

Actually, the concern is that I was living on rent till March 2019 and I had shifted to my own home in end of March 2019 and at same time I was paying home loan EMI from July 2018. । so my query is can I got both benefit of full limit i.e HRA and home loan

August 8, 2019

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Amlan Dutta

In short the answer is yes.

You will get HRA exemption based on the rent that you paid during the relevant period i.e 1 April 2018 - 31st March 2019 ...Whatever rent you paid during this period(assuming that rent exceeds 10% of your salary) can be used for claiming HRA exemption ...For the purpose of...

August 8, 2019

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Ajay Kumar Verma

Thanks a lot sir for your response, you cleared my doubt.

August 8, 2019

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Amlan Dutta

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August 8, 2019

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Ujjwal Kundu

Category : Income f.., 80U - Se.., Transpor..,

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July 30, 2019 2:32 am

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Income from Self occupied property

Dear Amlan sir,
I'm govt.salaried, disabled (60%). I filed my itr1 using annual salary statement sheet where I've claim exemption u/s 10 by Rs 4800 and dedication of Rs 75000 u/s 80u and submitted and e-verified the ITR.
Now I come to know that in form 16(provided by employer) Rs 75000 shown as HBL ...

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Amlan Dutta

So, i presume there was no HBL interest and it was indeed 80 U ...sure there can be chances of a mismatch notice but if your actuals are correct you can defend your position under e proceedings accordingly..regarding exemption on conveyance allowance , i don't think it exists anymore ...the conveya...

July 30, 2019

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Avin Rai

Category : Hostel E..,

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July 19, 2019 12:10 am

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Hostel Expenditure Allowance U/s 10(14)

Hi sir!
My child is staying in the hostel and the yearly fee for the hostel is Rs-57000/-. Can i show this while filing ITR in House Rent expanses?

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Amlan Dutta

Obviously no, but under section 10(14)(ii), if you receive any hostel expenditure salary allowance for your children from employer, it is eligible for exemption up to Rs. 300 per month or Rs. 3600 per annum for maximum up to 2 children.

Say, for example you receive 10,000 Rs for hostel expenditure ...

July 19, 2019

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