ALLOWANCES means a fixed sum paid to an employee for a specific purpose without confirming the end utilization. Under the income tax Act,1961,allowance is taxable on due or receipt basis, whichever is earlier.


Various types of allowances are as follows:-

¤House Rent Allowance, sec 10(13A) Rule 2A

¤Special Allowance, sec 10(14) Rule 2BB

-> Personal Allowance

-> Allowance for official duty

¤ Foreign Allowance, sec 10(7)

¤ Any other allowance HOUSE RENT ALLOWANCE SEC 10(13A) RULE 2A Payment by the employer to the employee in cash so that the employee may take a house on rent is called House Rent Allowance.

Example: If Mr. Kushal is employee in Big boss ltd. and Mr. Andy his employer has paid him ₹5000 p.m. for taking a house on rent, it will be called House Rent Allowance.



House rent allowance is exempt to the extent of the least of the following:-

i)             House rent allowance received

ii)            Rent paid over 10% of retirement benefit salary due to the accessee for the relevant period.

iii)           50% of retirement benefits salary in case of Bombay, Calcutta, madras and delhi. 40% of retirement benefits salary in case of any other place for valid relevant period.


Inhe bhi yaad rakho!!

* exemption is not available to an accessee who lives in his own house or in al house for which he has not incurred expenditure of rent.

* Relevant period means the period during which the said accommodation was occupied by the accessee during the previous year.

* Retirement Benefit Salary shall include :

1) Basic Pay

2) Dearness Allowance, if the terms of employment so provided.

3) Commission if it is paid as fixed percent of the turnover as decided in GESTETNER DUPLICATORS PVT. Ltd v CIT, (1979) 117 ITR 1 (SC)

*salary shall be computed on due basis i.e. Any arrear or advance shall not be included.







Example: Mr. Chulbul pandey is employed in dabangg ltd and is posted at agra. He is getting basic pay ₹30000 p.m. dearness allowance ₹20000 p.m. Where 40% of DA forms part of salary. Employer has also paid Mr. Chulbul pandey a bonus of ₹3000 p.m. and commission @ 3% on sale turnover of ₹5000000. House Rent Allowance is ₹20000 p.m. Whereas rent paid by mr. Chulbul pandey is ₹12000 p.m. Compute taxable salary of mr. Chulbul pandey for AY 13-14

Samadhaan: Calculation of taxable HRA :-

HRA will be exempted to the extent of the least of the following:

1) HRA RECIEVED =₹20000*12 =₹240000


=> Retirement benefit salary Basic pay 30000*12 = 360000

DA 40%(20000*12) = 96000

Commission 3%(5000000) 150000 = 606000

10% of RBS= 10%(606000) =₹60600

so, rent paid over 10% of RBS due to accessee =(12000*12) – (60600) =₹83400


3) 40% of RETIREMENT BENEFIT SALARY =40% (606000) = ₹242400

Therefore, HRA exempted = ₹83400

so, HRA RECIEVED 240000 (-) HRA EXEMPTED 83400 TAXABLE HRA 156600



Basic pay                    360000

Dearness allowance     240000

Bonus                         36000

Commission                 150000

House rent allowance   156600

GROSS SALARY            942600



5) If there is any change in HRA, rent paid, retirement benefit salary or the place of posting during the year, there will be seperate calculation for each of such change.

Example: Mr. Khiladi is employed in Boss ltd. And is getting basic pay ₹20000 p.m. HRA ₹10000 p.m. He has paid rent ₹1000 p.m. from 1st april 2012 to 30th september 2012 and thereafter rent was paid at ₹3000 p.m. Compute the taxable portion of HRA.

Samadhaan: FROM 1-4-12 TO 30-9-12 Least of the following is exempt

a) ₹10000*6 =60000

b) (₹1000*6) – [10%(20000*6)] =₹6000 – ₹12000 =NIL

c) 40%(20000*6) =₹48000

Least = Nil

so, Rent recieved = ₹60000 (-)Exempt = NIL Taxable HRA = ₹60000

FROM 1-10-12 TO 31-3-13 Least of the following is exempted

a) ₹10000*6 =₹60000

b) (3000*6) – [10%(20000*6)] = ₹6000

c) 40%(20000*6) = ₹48000

Least = ₹6000

So, Rent recieved = ₹60000 (-) HRA exempted = (₹6000) Taxable HRA = ₹54000

Therefore, total taxable HRA for the AY 13-14 = ₹ (60000 54000) = ₹114000


Top 10 people who changed the world: must read

Top 10 people who changed the world 

1. Bill Gates :
Bill Gates created his first computer program while still at high school, co-founded Microsoft in 1977, and by 1993 was the richest man on Earth. In 2000 Gates and his wife formed the Bill & Melinda Gates foundation, which is the largest charity in the world. One of its aim is to exempt the Third World of polio and other deadly diseases.

2. Martin Luther King :
Martin Luther King was a Baptist minister who campaigned against the segregation of blacks in the Southern states of the United States. He was influenced by Gandhi and believed in peaceful protest. He won the Nobel Peace Prize in 1964. King was assassinated in 1968, but will always be remembered for his dignified, passive resistance to an unjust society.

3. Nelson Mandela :
Nelson Mandela dedicated his life to the fight against apartheid – a policy which kept black and white South Africans apart and denied black citizens the vote. He was imprisoned in 1964 for his aggressive opposition to South Africa’s racist government and was held for 26 years. In 1990, after his release, Mandela was elected President of the African National Congress. In 1993 he won the Nobel Peace Prize for his work to end apartheid

4. Adolf Hitler :
Adolf Hitler was Germany’s leader from 1933 – 1945, during time which he led the world into the most devastating war in history. Hitler’s hatred of Jewish people and his desire for a blue-eyed, blond-haired master race led to the murder of six million people during World War II; most died in concentration camp in Eastern Europe.

5. Albert Einstein :
Albert Einstein was one of the greatest of all physicists and his name has become a symbol of genius. When his most famous work, the General Theory Of Relativity was proven in 1919, Einstein became the most celebrated scientist in the world and he won the Nobel Prize for Physics in 192 1. Einstein was a firm believer in pacifism but his scientific theories helped his adopted country, the USA, to develop the atomic bomb. A week before he died Einstein wrote to Bertrand Russell, a British Philosopher and leading antinuclear campaigner, asking to put his name to a manifesto urging all countries to give up their nuclear weapons.

6. Mahatma Gandhi :
Gandhi began his career as a lawyer but became a great political and spiritual leader. He led the peaceful civil disobedience of Indians against British rule in India and negotiated with the British Government until 1947, when India was granted independence. Gandhi became the first icon of a people’s struggleagains oppression. His simple lifestyle and his belief in religious tolerance have made him a symbol of decency and peace ever since.

7. Karl Marx’s :
Karl Marx’s ideas on economic history and sociology changed the world. Marx was a social philosopher who attacked the state and predicted a future in which everyone was equal. He explained his theories in the Communist Manifesto (compiled with Friedrich Engels and published in 1848) and Das Kapital (1867 – 94). His ideas eventually led to the Russian Revolution and communism. By 1950 almost half of the world‘s people lived under communist regimes.

8. Charles Darwin :
Naturalist Charles Darwin established the theory of evolution. He began forming his ideas when he served as official naturalist on a world voyage on HMS Beagle (1831 – 36) and spent the rest of his life back in England developing them. When his famous book The Origin of Species by Means of Natural Selections was published in 1859, there were violent reactions against it. Darwin challenged the Bible’s account of creation and explained that human being are descended from an ape-like ancestor. Another English naturalist, Alfred Russell Wallace, independently developed very similar ideas at the same time as Darwin.

9. William Shakespeare :
William Shakespeare is generally agreed to be the greatest play writer in the English language. He began as an actor and wrote atleast 154 love poems and 37 plays, including Hamlet, King Lear, Romeo and Juliet and Macbeth. Shakespeare also probably introduced more than 1,700 new words to the English Language.

10. Christopher Columbus :
Christopher Columbus is one of the most famous of all explorers. He believed he could reach Asia by sailing west across the Atlantic Ocean and in 1492 he set sail in the Santa Maria to prove his theory. Instead, he landed on the islands now known as the West Indies. His discoveries led to the European explorations and settlement of the Americas.

Change of Examination Centre at Delhi / Patna / Thane – CPT

Important Announcement
No.13-CA(Exams)/CPT/December, 2013 December 9, 2013
The venue for Common Proficiency Test (CPT) to be held on 15
December 2013
(Sunday) has been changed, as given below, for some of the candidates in Delhi, Patna
and Thane centres:
Old Centre Roll No New Centre
From To
Vivekanand School
D-Block , Anand Vihar
NEW DELHI – 110092
199365 199654
Vidya Bal Bhawan Sr. Sec. School
Kondli Gharoli Road
Mayur Vihar – III,
DELHI – 110096
Christ Church Diocesan School
Near Gandhi Maidan Bus Stand
Kargil Chowk, Collectorate Road
PATNA – 800001
184857 185486
B. D. Public School
Buddha Colony
Near Buddha Colony Police Station
PATNA – 800001
Dnayanasadhana College of Arts,
Science and commerce
Sathe Wadi, Off Eastern Express
THANE (WEST) – 400604
KET’S Vinayak Ganesh Vaze College of
Arts, Science and Commerce
Mithagar Road
Mulund (East)
MUMBAI – 400081
The Examination timing shall remain the same, i.e. 10.30 AM to 12.30 PM and 2.00 PM to
4.00 PM. The Admit Cards already issued to the candidates will be valid for the new venue
also. Candidates are advised to make a note of the new centres and accordingly appear in
the said Examinations in the new centre only.
(G. Somasekhar


this post is for those students who are demotivated by the current senario. n thinking about quiting this prestigious course …

first of all i want to bring in notice of all of you that there is like this
ki CA’s ki job nhi lag rhi … jinki nhi lag rhi they are very high headed peoples jo sochte h ki CA bnte 60-70 k mil jayenge 
sabko neeche se hi shuruwaat krni padti h .. n ek baar start ho jaye fir growth bahut h .. you dont blieve many of my friends got 50-80 % salary hike in just 1 year . 
2 years back when i started this page CA Rockstars. with a aim of helping CA students does not even imagine that students gonna quit this course only because of starting package they get ..

but this is really happening ..
every one knows that many graduates, MBA’s , engineers n even lawers are not even getting job opotunities … many of them working in call centres … 
CA’s are far better than other courses . taking case of mine , done articleship from a small firm, rejected in Campus but got 3-4 job opportunities through different sources .. n am quit satisfied with my job ..(will not disclose the salary :P)

so all the CA aspirants dont think about job opportunities , thier are plenty of them waiting for u all 

so be a GCA ( good chartered accountant )

rest god will take care of u all 

Regards :- CA Alkit Jain

ICSI modified the criteria for availing paper wise exemption on the basis of higher education.

Important ICSI Updates:

ICSI has modified the criteria for availing paper wise exemption on the basis of higher education.

For LL.B. Passed students (both 3year Degree Course & 5 year Integrated Law Course):
1. Executive Programme – Paper 7 (i.e. Industrial,
Labour and General Laws)

For students who passed Final Examination of
“Institute of Cost Accountants of India)
1. Executive Programme:
a. Cost and Management Accounting ( Module1,
Paper 2 )
b. Tax Laws and Practices ( Module 1, Paper 4 )
c. Company Accounts and Auditing Practices
( Module 2, Paper 5)

2. Professional Programme:
a. Advanced Company Law and Practice ( Module
1, Paper 1 )
b. Financial, Treasury and Forex Management
( Module 2, Paper 5)
c. Advanced Tax Laws and Practice ( Module 3,
Paper 7 )

NOTE: No exemption shall be given on the basis of
any other higher education.