How much House Rent allowance is exempted ?

HOUSE RENT ALLOWANCE SEC 10 (13A) READ WITH RULE 2A :

HRA is taxable under the head Salary. Under the Income Tax Act, certain exemptions
in respect of HRA is allowed under section 10(13A) and is regulated by Rule 2A. The
least of the following is exempt from Income Tax.

An amount equal to 50% of the salary if the rented house is situated in Delhi,
Kolkata , Mumbai or Chennai and an amount equal to 40% of Salary if the
rented house is situated at any other place.
The amount of House Rent Allowance received by the employer in respect of
the period during which the rental accommodation is occupied the employee
during the previous year,
The excess amount of rent paid over 10% of the salary received by the
employee during the previous year
Note: Salary for the purpose of calculation of exemption shall mean
the Basic Salary received by the employee and includes dearness
allowance -

Example 1: Aman, who resides in Ahmadabad gets a Salary of Rs 10,00,000 and HRA Rs
6,00,000. The rent paid by him is Rs. 7,00,000 . Calculate the amount of taxable House Rent
Allowance for the previous year 2013-14.
Answer: The least of the following is exempt from income tax out of the HRA Rs 6,00,000
received by Aman
(a)

Rs 4,00,000 being 40% of the basic salary received by Aman .

(b) Rs 6,00,000 being the amount of HRA received by Aman .

(c)
Rs 6,00,000 being the excess of rent paid over the basic salary received by Aman.
(Rs10,00,000*10%=Rs 1,00,000. Rs 7,00,000 - Rs 1,00,000=Rs 6,00,000)
Therefore the exempt amount is Rs 4,00,000.
Example-2. SALARY: Monthly - Rs 20,000 Annual - Rs 2,40,000
HRA RECEIVED:Monthly - Rs 6,500 Annual - Rs 78,000
RENT PAID: Monthly - Rs 8,000 Annual - Rs 96,000
The three calculations for HRA exemption:
Option I-Actual HRA received: In this case it is Rs 78,000
Option II-Rent paid minus 10% of salary. Rs 96,000 - Rs 24,000 = Rs 72,000
Option III. 50% of salary (metros) or 40% (others): Rs 1,20,000 (metros), Rs 96,000 (others)

The second calculation being the least of the three, the individual is eligible for tax
exemption of only Rs 72,000.

A Welfare Wing of Division

(Sr. DPO: Shri Deepak Kumar Gupta)
The man is the most critical component in the factors of production, the
backbone of any organisation and the management of their affairs plays a pivotal
role in the success and failure of any venture. The Personnel Branch of Jabalpur
Division is effectively managing the affairs of around 19,000 dedicated and hard
working employees of the division. Apart from the routine affairs of personnel
branch ranging from recruitment of fresh blood, their training, promotion to their
respectful adieu from Railways, we are committed to welfare of our employees as
well as their dependents by ensuring a healthy work-life balance among our
employees. Staff welfare is the heart of the Personnel Branch machinery.
As the railways aspire for customer satisfaction, the personnel branch works hard
for our employees satisfaction as we believe that only satisfied and non-tensed
employees can provide the excellent services desired by our customers. In quest of
employee satisfaction, we have kicked off several initiatives in our division. The
Employees Query System available at Railnet with URL https://10.157.2.19/ is
extensively used by employees to know the details for their establishment matters.
Of late social media are hit among employees, to reap this most; we have opened a
web page on facebook site, namely www.facebook.com/personneljbpdiv in
which the employees share their welfare, establishment and service matters
alongside posting their queries and grievances which are resolved and replied
promptly.

A
web page created on Facebook Social Site has been a medium of sharing
indelible moments and information among employees.

To boost the e-governance further, we have started forward linkage of NICs

CPGRAMS at divisional level to pass on the employees grievance to the concerned
section responsible for its redressal and similarly, Electronic Grievance
Redressal System (EGRS) has been introduced in the division which is accessible
to each employee on internet to feed and register their problems online cutting
across various departments. All these efforts are proving very effective for
managing, chasing and finally sorting the grievances out in stipulated time frame.
A Database of over 30,000 pensioners is being formulated in the Pension Portal
by digitalising pension and service records of retired employees apart from
preserving their physical records in a good manner supporting the suo moto
revision of pensions every time in future at the introduction of upcoming Pay
Commissions. A very informative Pension Booklet has been constantly brought
out for our retiring and retired employees to disseminate settlement related
information. For the purpose of simplifying the establishment issues, the division
has achieved the unification of different wage periods into a Single Wage Period.
All PRIME Modules barring Cadre have been started at all 25 different PRIME
locations in the division, paving the way for moving towards more advanced webbased Human Resource Management package of IPAS/AIMS. Now all usual
activities of personnel branch such as OT Statement, issuing Privilege Passes, PTOs
and Settlement Dues Statements are generated from PRIME. In no time, Advanced
Railway Pension Access Network (ARPAN) is going to get introduced in our
division which will, too, definitely help bring down the number of settlement of ONR
cases substantially.
The personnel branch regards in adding values in the lives of our employees by
promoting extra-curricular activities for employees, their spouses and children. In
the lines of this cause, we have orchestrated Sanskar Maitri - Prathama and
Dwitiya in collaboration with the Indira Gandhi Rashtriya Manav
Sangrahalaya, Bhopal to showcase the wealth of our splendour cultures, their
varied artefacts and enchanting dances of different tribes came from diverse
corners of the country.

A group of folk artists from Manipur performed their traditional Manipuri

dance at the occasion of Sanskar Maitri- Dwitiya.
To imbibe peace and coveted concentration in the minds, the personnel branch is
persistently holding the camps of Yoga and meditation at various crew lobbies and
depots of the division.
The employees and their kins participate passionately in all activities of Scout and
Guide and a massive plantation drive was organised in railway premises and
other areas in which thousands of saplings were planted by railway employees and
their children.

The Children of Railway School at NKJ took part avidly in the Plantation
Drive at Katni.
Keeping in view of great religious significance of Maihar, worship place of deity
Sharda, a Holiday Home has been built there for the stay of employees.

Newly Built Maihar Holiday Home at Maihar Rly Station has been elegantly
furnished by SBF.

Alongside it, to enjoy the scenic beauty of Panchmarhi hill station better, Holiday
Home located there was also furnished well through Staff Benefit Fund (SBF) for
hassle free stay of staff with their families. The department has managed to fund
various employee-centric activities through SBF such as running of Homeopathy
clinics, invigoration and maintenance of staff canteens at DRM office and Diesel
Shed at NKJ, organising Fresh Air Camps for staff and children and various cultural
and sports events.
To safeguard better education to employees children, the railway school at New
Katni Junction was modernised and equipped with requisites and curriculum was
changed into CBSE for making students more competitive. The division is about to
start the digitalisation of all service records of employees by scanning them which
will help their preservation and save huge efforts put in reconstruction of lost
service records and also any manipulation in the records. To bestow the benefits of
employees service to his/her family wards, the large numbers as high as 298
LARSGESS cases and 77 CGA have been finalised and new postings have been
offered to employees wards in the last financial year.
The division has been getting the incessant support of both the recognised Unions
to nurture very congenial and progressive association between employees and likeminded employer. The well-established Industrial Relations mechanisms such as
PNM, Non/Short Payment Meeting and PREM have become the symbiotic sources of
frequent interactions of employees with administration. In the last calendar year,
overall 330 new issues were raised by Unions in total 11 PNMS and in the same
year, 289 old and new issues reached satisfactorily to their logical conclusions.
Many worthwhile ideas of Unions and various Associations vis-a-vis multi-skill cadre
merging, safety arrangement for trackman, beneficial extension of PRIME facilities,
security and better maintenance of railway colonies and improvement in railway
medical facility were affirmatively discussed and inculcated into management of
administrative affairs.

Apart from these, Jabalpur division like any other division faces many present and
upcoming challenges such as retention of new talents in organisation due to high
and pervasive attrition rate, constant arrangement of refresher courses to acquaint
the know-how of new technology and skill to get the best result from our workers by
developing their capability, ensuring judicious use of man power, dearth of
motivation and enterprise in some corners, sporadic inter divisional parochial
differences and et al.. But we are committed to play larger role to sort out these
hurdles.
The personnel branch of Jabalpur division is invariably striving hard and also being
successful to provide healthy and family like milieu for its employees which help
sprout the natural instinct of development in human.

*****