House Rent Allowance

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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Income tax benefits available to Salaried Persons for A.Y. 2022-23

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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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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Taxability, Exemption of House rent allowance [Section 10(13A)]

Income Tax - What is House Rent Allowance: – HRA is an allowance (Salary Component paid to employees by an employer towards payment of rent for residence of the employee. Taxability of House Rent Allowance: – As House rent Allowance (HRA) granted by Employer to Employee is part of Salary. It will be taxable under the head “Income [&helli...

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House Rent Allowance – A Tax planning tool for Salaried

Income Tax - Generally employee submits Rent receipt and rent deed to his employer to claim exemption of tax on account of HRA however recently CBDT vide circular :08/2013 dated 10 Oct 2013 has made mandatory that If annual rent paid by the employee to his/her land lord exceeds Rs 1,00,000 per annum...

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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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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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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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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"

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 | ,

Income tax benefits available to Salaried Persons for A.Y. 2022-23

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 |

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 | ,

Taxability, Exemption of House rent allowance [Section 10(13A)]

What is House Rent Allowance: – HRA is an allowance (Salary Component paid to employees by an employer towards payment of rent for residence of the employee. Taxability of House Rent Allowance: – As House rent Allowance (HRA) granted by Employer to Employee is part of Salary. It will be taxable under the head “Income [&helli...

Read More
Posted Under: Income Tax |

House Rent Allowance – A Tax planning tool for Salaried

Generally employee submits Rent receipt and rent deed to his employer to claim exemption of tax on account of HRA however recently CBDT vide circular :08/2013 dated 10 Oct 2013 has made mandatory that If annual rent paid by the employee to his/her land lord exceeds Rs 1,00,000 per annum...

Read More
Posted Under: Income Tax |

Difference between HRA & Section 80GG & their calculations

Difference between House Rent Allowance(HRA) & Section 80GG for Rent Paid? & their calculations as per the Income-tax Act: An assessee who stays in a rented house can reduce tax liability by claiming exemption on HRA or deduction u/s 80GG. Let us understand the terms What is the House Rent Allowance (HRA)? House Rent Allowance [&h...

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Posted Under: Income Tax |

House Rent Allowance : Tax Saver For Salaried Person

House Rent Allowance (HRA) is generally considered as a part of salary component and is generally added in the salary structure to help the individual to save taxes. House rent allowance deduction is given under section 10(13A) of the Income Tax Act accordance with Rule 2A of the Income Tax Rules. If you stay in […]...

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Posted Under: Income Tax |

House Rent And Its Impact on Income Tax Computation

House rent paid by a salaried person who is getting House Rent Allowance (HRA) Where expenditure is incurred by the assessee towards payment of house rent, he is allowed to get a deduction from his total income. Least of the following is exempt from tax u/s 10(13A) read with Rule 2A: (i) Actual amount of […]...

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Posted Under: Income Tax |

Myths and misconceptions about Personal Income tax

Gifts received: Gifts received from specified relatives are exempt from income tax, and there is no upper limit also. Similarly, gifts of any amount and from anyone received during your marriage are totally tax-free. Similar is the case with the gifts received under a Will or by way of an inheritance, or from a registered charitable or e...

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Posted Under: Income Tax |

Basic Components of Salary and its Taxation

CTC is cost to company and the components are Basic +HRA +Conveyance +Mobile/Telephone Expense Reimbursement +Medical Reimbursement +All allowances +Leave Travel Allowance (LTA)....

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Posted Under: Income Tax |

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