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Rule 2A of Income Tax Rules 1962: Limits for the purposes of section 10(13A)

Rule 2A - Limits for the purposes of section 10(13A)

The amount which is not to be included in the total income of an assessee in respect of the special allowance referred to in clause (13A) of section 10 shall be —
(a) the actual amount of such allowance received by the assessee in respect of the relevant period; or 
(b) the amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or
(c) an amount equal to—
(i) where such accommodation is situate at Bombay, Calcutta, Delhi or Madras, one-half of the amount of salary due to the assessee in respect of the relevant period; and
(ii) where such accommodation is situate at any other place, two-fifth of the amount of salary due to the assessee in respect of the relevant period,
whichever is the least.

Explanation : In this rule—

(i) “salary” shall have the meaning assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule;
(ii) “relevant period” means the period during which the said accommodation was occupied by the assessee during the previous year.



Extra Notes for Readers:

- Rule 2A was introduced by the Income Tax (Amendment) Rules, 1965, w.e.f. 1-4-1965.
- Clause (d) of Rule 2A was omitted by the Income Tax (Fourth Amendment) Rules, 1986, w.e.f. 1-4-1987.
- Clause (iii) under the Explanation to Rule 2A was omitted by the Income Tax (Fourth Amendment) Rules, 1986, w.e.f. 1-4-1987. Earlier clause (iii) was inserted by the Income Tax (Third Amendment) Rules, 1981, w.e.f. 20-2-1981.



Reference/Source: Check at Income Tax site for latest version of the Ruleslink

This page was last updated on 17th October 2016.
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