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HRA Exemption

Check the details about HRA exemption calculation and House Rent Allowance exemptions of income tax

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HRA Exemption

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  1. HRA Exemption Powered By: www.taxqueires.in

  2. Worried about HRA? Powered By:www.taxqueries.in

  3. Let’s Check out the Solution…… Powered By: www.taxqueries.in

  4. Contents • What is HRA? • Who gets House Rent Allowance? • What are the Benefits of HRA? • HRA Exemption • How to Calculate HRA from Basic Salary? Powered By: www.taxqueries.in

  5. What is HRA? House Rent Allowance is a benefit provided by the employer to his employee for his residential purpose. A Salaried assesse who lives in a rented house can claim HRA or House Rent Allowance to lower taxes. Powered By: www.taxqueries.in

  6. Contd…. The HRA is an amount given by the employer to his employees as a part of Salary to meet the expenses in connection with rent of the accommodation. House Rent Allowance is an allowance given with the salary. If you don’t live in rented accommodation, this allowance is fully taxable. Powered By: www.taxqueries.in

  7. Who gets House Rent Allowance? Only salaried Individuals gets the benefits of House Rent Allowance. HRA exemption is also available only if the Salaried employee is living in rented accommodations rather than an own house. Most of the employers include House Rent Allowance in the salary package. The HRA (House Rent Allowance) is beneficial to both the employer and the employee. Powered By: www.taxqueries.in

  8. Who can’t Get House Rent Allowance? Self-employed individuals are exempt from claiming HRA Exemption. The Private or Government Salaried assesse who get accommodation, do not get the HRA allowance. Powered By: www.taxqueries.in

  9. What are the Benefits of HRA? • The most important benefit of HRA is the tax exemption.  • The inclusion of House Rent Allowance (HRA) in your salary saves a huge portion of the tax. For most of the employee, this allowance is one of the best saving method. • The House Rent Allowance is also beneficial to your employer. Your employers do not give money for your HRA allowance from their pocket. • Rather, organization take out some part of your basic salary and allot it to you as the HRA. So there is no extra expenditure to the employers. Powered By: www.taxqueries.in

  10. HRA Exemption HRA Exemption under Section 10 (13A) of the Income Tax shall be the least as follows. • Actual HRA received from your employer/Organization. • Actual house rent paid by the salaried assesse minus 10% of basic salary. • 50% of basic salary along with dearness allowance if you live in a metro or 40% of the basic those living in metro cities for non-metros. Powered By: www.taxqueries.in

  11. HRA is regulated by the provisions of Section 10(13A) of the Income Tax Act, 1961 Powered By: www.taxqueries.in

  12. For More Information visit: http://www.taxqueries.in/income-tax/hra-calculation-hra-exemption/ Powered By: www.taxqueries.in

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