PAN of Landlord is a must if your total annual rent paid exceeds Rs. one Lakhs during the financial year. If rent is equal or less than one lakh rupees then you need not provide PAN details of your landlord to your employer. As per recent notification issued by CBDT, to claim HRA exemption employees … Read More » "Landlord’s PAN details required for HRA exemption – Mandatory Provision"
House rent allowance is a grant provided by the employer to the employee to meet the cost of living in a rented house. Its also referred to as HRA allowance. Such allowance forms part of salary that the employee receives from the employer every month. Income tax act provides tax exemption under section 10(13A) due … Read More » "House Rent Allowance Tips to lower your taxes – HRA"
House rent allowance is paid by an employer to his employee. The employee as per the eligibility under section 10 (13A) can claim exemption from HRA received every month. A self employed person did not get salary from employer. Therefore, he can not claim exemption under section 10 (13A) of the income tax act 1961. … Read More » "Frequently Asked Questions on House Rent Allowance exemption"
Mr X is working in a non metro city and receives a basic salary of Rs. 14, 500, Dearness Allowance as Rs. 3000 and does not receive any commission. If he has paid Rs. 3000 as house rent while receiving house rent allowance of Rs. 4000. Let us calculate what will be his taxable house … Read More » "Example for calculating Exemption for House Rent Allowance"
House rent allowance granted by an employer to his employee is tax exempted to the extent provided under section 10 (13A) of income tax act 1961. Employees in India, receive house rent allowance from their employer every month as a part of their terms and conditions of employment. As per Income Tax Act provision, HRA … Read More » "House rent Allowance or HRA Exemption U/S 10 (13A)"