2 House Rent Allowance

House Rent Allowance

Tax Treatment of Income from Salary in Brief

Income Tax - 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 in Recognized Provident Fund j) Contribution by Cent...

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Income Tax Benefits to Residents & Indian Companies

Income Tax - 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...

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Income tax benefits available to Salaried Persons for A.Y. 2023-24

Income Tax - Articles compiles List of benefits available to Salaried Persons for AY 2019-20 which includes 1. House Rent Allowance, Children Education Allowance, Hostel Expenditure Allowance, Transport Allowance and other allowances 2. Perquisites...

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Salary Income – Answer to Common issues

Income Tax - section 17​​ of the Income-tax Act defines the term salary. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary....

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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? Ans: 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....

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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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ITAT allows HRA allowance for Rent paid to Spouse

Abhay Kumar Mittal Vs DCIT (ITAT Delhi) - Abhay Kumar Mittal Vs DCIT (ITAT Delhi) it was submitted that Income Tax Act does not prohibit claiming HRA exemption on the rent paid to one’s spouse, that her wife is qualified medical practitioner and she has returned the loan extended to her by the assessee from liquidation of mutual funds and...

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Performance Bonus not forms part of salary for HRA calculation

Sudip Rungta Vs DCIT (ITAT Kolkata) - Clause (h) of Rule 2A specifically provides that ‘salary’ includes dearness allowance, if the terms of employment so provede, but excludes all other allowances and perquisites. Accordingly, the performance bonus received by the appellant did not form part of ‘salary’ for the purposes of comp...

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No HRA Exemption on non genuine Rent Paid to Mother

Mrs. Meena Vaswani Vs ACIT (ITAT Mumbai) - Assessee had claimed deduction u/s 10(13A) of 1961 Act which is a wrong claim as no rent was paid by the assessee and the said alleged rent of Rs. 31,500/- per month being paid to mother was shown only to take exemption of HRA u/s 10(13A) of 1961 Act. ...

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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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Instructions regarding Grant of HRA to Central Government employees

No.2/4/2022-E.IIB - (30/12/2022) - No.2/4/2022-E.IIB Government of India Ministry of Finance Department of Expenditure *** North Block, New Delhi. Dated the 30th December, 2022. OFFICE MEMORANDUM Subject: Compendium of Instructions regarding grant of House Rent Allowance to Central Government employees -regarding The Department of Ex...

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Format of Deceleration of Income Tax Deduction Claimed & House Rent Receipt

Circulars No. 76 - (02/11/2021) - Proof of savings/documents viz. insurance premium receipt, NSC, Infrastructure Bond, PPF Bank Statement, Housing Loan Certificate from bank, rent receipt, Copy of House Owner’s Pan Card etc...

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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"

Instructions regarding Grant of HRA to Central Government employees

No.2/4/2022-E.IIB 30/12/2022

No.2/4/2022-E.IIB Government of India Ministry of Finance Department of Expenditure *** North Block, New Delhi. Dated the 30th December, 2022. OFFICE MEMORANDUM Subject: Compendium of Instructions regarding grant of House Rent Allowance to Central Government employees -regarding The Department of Expenditure, Ministry of Finance has issue...

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Tax Treatment of Income from Salary in Brief

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 in Recognized Provident Fund j) Contribution by Cent...

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Posted Under: Income Tax | ,

Income Tax Benefits to Residents & Indian Companies

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...

Read More
Posted Under: Income Tax | ,

Income tax benefits available to Salaried Persons for A.Y. 2023-24

Articles compiles List of benefits available to Salaried Persons for AY 2019-20 which includes 1. House Rent Allowance, Children Education Allowance, Hostel Expenditure Allowance, Transport Allowance and other allowances 2. Perquisites...

Read More
Posted Under: Income Tax |

Salary Income – Answer to Common issues

section 17​​ of the Income-tax Act defines the term salary. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary....

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? Ans: 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....

Read More
Posted Under: Income Tax | ,

Admissibility of house rent allowances on rent paid to spouse & parents

Admissibility of house rent allowances on rent paid to spouse & parents- Threadbare analysis of the chain of events Synopsys to the article: (1) Introduction to the legal framework (2) ITAT rulings and it’s consequential legal implications (3) Key takeaways have been drawn from above cited judicial pronouncements (1) Introduction to...

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HRA Exemption, Calculation & Recent Judgments

Section 10(13a) House Rent Allownace (HRA) Meaning, Exemption, Calculation & Recent Judgements 1. Meaning of House Rent Allowance: – House Rent Allowance (HRA) is an allowance paid by an employer to its employees for covering their house rent. Such allowance is taxable in the hand of the employee. The Exemption on HRA is covered...

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Posted Under: Income Tax | ,

ITAT allows HRA allowance for Rent paid to Spouse

Abhay Kumar Mittal Vs DCIT (ITAT Delhi)

Abhay Kumar Mittal Vs DCIT (ITAT Delhi) it was submitted that Income Tax Act does not prohibit claiming HRA exemption on the rent paid to one’s spouse, that her wife is qualified medical practitioner and she has returned the loan extended to her by the assessee from liquidation of mutual funds and fixed deposits. We […]...

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Submitting Investment Declaration form: Things to ponder on

As a salaried employee, he/she must submit a tax declaration form via Form 12BB at the beginning of each financial year or 3 months prior to the close of the particular financial year. The form is statement of claims that and employee gives for deduction of tax to his/her employer to claim exemptions or deductions […]...

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Posted Under: Income Tax | ,

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