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Monday 23 January 2017

House Rent Allowance

H.R.A pdf (english)
https://drive.google.com/open?id=0B-IfS1vHfJ_Yel9kQ0F0TEw1Yjg

Rules for calculating the allowed deduction under Income Tax for payment of house rent is under

As per section (13A) of income tax act 1961 read withRule 2A

Least of the following is exempt:
a) Actual HRA Received
b) 40% of Salary (50%, if house situated in Mumbai,Calcutta, Delhi or Chennai)
c) Rent paid minus 10% ofsalary (* Salary = Basic + DA (if part of retirement benefit) + Turnover based Commission

Note:
i. Fully taxable, if HRA isreceived by an employee who is living in his own house or if he does not pay any rent
ii. It is mandatory for employee to report PAN of the landlord to the employer if rent paid is more
    than Rs. 1,00,000

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