House Rent Allowance

HRA Taxability & Section 80GG Deduction on Rent Paid

Income Tax - House Rent Allowance (HRA) is a common component of the salary structure. Although HRA is a part of the salary, unlike basic salary, is not entirely taxable. Subject to certain conditions, a part of HRA gets exempted under Section 10 (13A) of the Income-tax Act. The tax benefit on HRA is available only to a salaried individual who has the...

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Tax Benefits on Home Loan

Income Tax - Article deals with Tax Benefit on Home loan under section 80C for Loan Principal Payment, Section 24 for Interest Payment, Tax planning of Home Loan & HRA....

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Tax Treatment of Income from Salary in Brief

Income Tax - I. Income under the head Salaries 1.1 Salary is defined to include: a) Wages b) Annuity c) Pension d) Gratuity e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages f) Advance of Salary g) Leave Encashment h) Annual accretion to the balance of Recognized Provident Fund i) Transferred balance […]...

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Income Tax Benefits to Residents & Indian Companies

Income Tax - Resident Benefits allowable A resident person is chargeable to tax in respect of his global income. If Income-tax Act enlarges the scope of taxable income of a resident person, it extends certain benefits and privileges to a resident person as well, inter-alia, an option to compute income on presumptive basis, deductions under Chapter VI-...

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FAQs on Income from house property

Income Tax - ​Is rental income from sub-letting chargeable to tax under the head Income from house property? ​ Rental income in the hands of owner is charged to tax under the head Income from house property. Rental income of a person other than the owner cannot be charged to tax under the head Income from house property. Hence, rental income recei...

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No HRA for government employees staying with spouse in government allotted flat

Income Tax - A government employee is not entitled to get House Rent Allowance(HRA) if he or she is residing with the spouse who has been alloted a government accommodation, the Delhi High Court said on Tuesday. The Court’s decision came on a petition filed by a government employee challenging the Centre’s order directing her to refund...

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Salary Cannot be taxed as Income from other sources without proving absence of master and servant relationship

Commissioner of Income Tax, New Delhi Vs UK. Bose (Delhi High Court) - In the returns the assessee had claimed deduction under Section 10(13A) on the basis of the rent paid by him which has been debited from his salary directly. This Section exempts any special allowances specifically granted to an assessee by his employer to meet expenditure actually incurred on payme...

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HRA allowable if rent is actually paid by the assesee

Commissioner Of Income-Tax Vs P.D. Singhania (Allahabad High Court) - From a reading of the clauses (a) and (b) of the Explanation to section 10(13A), which were inserted by the Taxation Laws (Amendment) Act, 1984 with retrospective effect from 1-4-1976, it is absolutely clear that in order to claim deduction under sub-section (13A)...

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Short Deduction of TDS – Assessee cannot be treated in default if acted in bonafide manner

ACIT Vs Hughes Software Systems Ltd. (ITAT Delhi) - The fact that there is a short deduction of tax in the present case where it was linked with the performance incentive paid to the employee on the basis of achievement of fixed percentage, the estimated TDS deducted in a bona fide manner as per the settled legal position cannot be faulted with....

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S. (10(13A) ‘Salary’ does not include commission for Calculation of HRA

Commissioner Of Income-Tax Vs H.V. Yazdi (Calcutta High Court) - Contribution to be made to the provident fund must be the proportionate amount of salary paid to the employees. Salary was a fixed monthly payment whereas the commission was not a fixed payment and could not be included within the scope and ambit of the term salary ....

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S. 10(13A) ‘Salary’ does not include bonus for Calculation of HRA

Commissioner Of Income-Tax Vs B. Ghosal (Kerala High Court) - Bonus cannot be regarded as falling within the scope of the expression salary as defined in Clause (h) of Rule 2. Clauses (b) and (c) of Rule 4 contain a clear indication that the expression salary takes in only periodical payments made by the employer to the employee during a year by way of remuner...

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Circular No. 90-Income Tax dated 26-6-1972

Circular No. 90-Income Tax - (26/06/1972) - Circular No. 90-Income Tax With the issue of orders in the Government of India, Ministry of Finance (Department of Expenditure), O.M. No. F. 1(34) E-II(B)/68, dated 18-1-1969, "dearness pay" is considered as "pay" for purposes of pension and gratuity and compensatory allowance (including house ren...

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CBDT Letter : F. No. 12/19/64-IT(A-I), dated 2-1-1967

Letter : F. No. 12/19/64-IT(A-I - (02/01/1967) - Reference is invited to the Central Board of Direct Taxes letter F. No. 12/19/64-IT(B), dated 22-2-1966 , where in it was intimated that the house rent allowance given at flat rates may be treated as exempt from income-tax without verification of the fact whether the employee concerned had paid any ...

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CBDT Letter : F. No. 12/19/64-IT(B), dated 22-2-1966 – HRA

Letter : F. No. 12/19/64-IT(B) - (22/02/1966) - 1. Reference is invited to the Board’s letter No. 12/19/64-IT(B), dated 8-1-1965, addressed to all State Governments.  A question has been raised whether the house rent allowance at flat rates sanctioned to Central Government servants without verification of rent receipts vide the Ministry of Fin...

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Recent Posts in "House Rent Allowance"

HRA Taxability & Section 80GG Deduction on Rent Paid

House Rent Allowance (HRA) is a common component of the salary structure. Although HRA is a part of the salary, unlike basic salary, is not entirely taxable. Subject to certain conditions, a part of HRA gets exempted under Section 10 (13A) of the Income-tax Act. The tax benefit on HRA is available only to a salaried individual who has the...

Read More
Posted Under: Income Tax | ,

Tax Benefits on Home Loan

Article deals with Tax Benefit on Home loan under section 80C for Loan Principal Payment, Section 24 for Interest Payment, Tax planning of Home Loan & HRA....

Read More
Posted Under: Income Tax | ,

Tax Treatment of Income from Salary in Brief

I. Income under the head Salaries 1.1 Salary is defined to include: a) Wages b) Annuity c) Pension d) Gratuity e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages f) Advance of Salary g) Leave Encashment h) Annual accretion to the balance of Recognized Provident Fund i) Transferred balance […]...

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Posted Under: Income Tax | ,

Income Tax Benefits to Residents & Indian Companies

Resident Benefits allowable A resident person is chargeable to tax in respect of his global income. If Income-tax Act enlarges the scope of taxable income of a resident person, it extends certain benefits and privileges to a resident person as well, inter-alia, an option to compute income on presumptive basis, deductions under Chapter VI-...

Read More
Posted Under: Income Tax | ,

FAQs on Income from house property

​Is rental income from sub-letting chargeable to tax under the head Income from house property? ​ Rental income in the hands of owner is charged to tax under the head Income from house property. Rental income of a person other than the owner cannot be charged to tax under the head Income from house property. Hence, rental income recei...

Read More
Posted Under: Income Tax | ,

Section 80GG Deduction On Rent paid

Section 80GG allows the employee to a deduction in respect of house rent paid by him for his own residence. Such deduction is permissible subject to the following conditions :- (a) the employee has not been in receipt of any House Rent Allowance specifically granted to him which qualifies for exemption under section 10(13A) of the Act; (...

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Posted Under: Income Tax | ,

Eight Common Myths & Misconceptions about tax

In this article we have discussed right Myth or Mis-Conceptions related to Income Tax Prevalent in the Mind of General Taxpayers related to Personal Taxation. Article Aims to clear such Mis-Conceptions. The following are some of the myths and real facts related to same:- ....

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Posted Under: Income Tax | ,

HRA vs Rent Free accommodation- Comparison & Calculator

For salaried people most of the companies provide House Rent Allowances (HRA) and many companies also provide the facility of Rent free accommodation. Many companies provide the facility of House Rent Allowance (HRA) and in case the employee opt for rent free accommodation facility then HRA is not allowed....

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Posted Under: Income Tax | ,

Income Tax provisions – Individual Salaried for A.Y 2015-16

The article covers Introduction, Residential Status, Tax Rates, Head-wise Taxation & Deduction available under the Act. Hope you will find it useful in this Return Filing Season....

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Posted Under: Income Tax |

Claiming HRA – What to do if landlord do not have PAN?

If you are paying rent and getting HRA allowance every month, you are eligible for tax deductions according to the prescribed limit of HRA exemption. If you want to avail of the benefits, you must submit the rent receipts to your employer every year at the time of the collection of tax proof. Central Board of Direct Taxes (CBDT) has vide ...

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Posted Under: Income Tax | ,
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