1. What is the criteria of granting HRA rebate while calculating Income Tax?
2. What documents one has to take from employees as substantial proof to justify that they are staying in a rented accommodation?
3. Whether in Government Service, as per Service Rules, is it mandatory for the employee to inform the department/office regarding his residential address before getting HRA rebate.
From India, Delhi
2. What documents one has to take from employees as substantial proof to justify that they are staying in a rented accommodation?
3. Whether in Government Service, as per Service Rules, is it mandatory for the employee to inform the department/office regarding his residential address before getting HRA rebate.
From India, Delhi
1. There are three criteria for rebate calculation of HRA.
The amount of allowance is the lowest of the following three limits :
Actual HRA received from the employer.
Actual Rent paid less by 10 per cent of salary.
40 per cent of salary for non-metro cities ot 50 per cent if the rented premises are in metro cities.
2. As an employee, you need to submit the rent receipts to your employer showing the amount of actual rent paid, that proof is enough to justify that you are staying ina rented accommodation , but the property should not be at your name.
From India, Jaipur
82The amount of allowance is the lowest of the following three limits :
Actual HRA received from the employer.
Actual Rent paid less by 10 per cent of salary.
40 per cent of salary for non-metro cities ot 50 per cent if the rented premises are in metro cities.
2. As an employee, you need to submit the rent receipts to your employer showing the amount of actual rent paid, that proof is enough to justify that you are staying ina rented accommodation , but the property should not be at your name.
From India, Jaipur
1. What is the criteria of granting HRA rebate while calculating Income Tax?
Ans. :
I. If one is staying in his own house then there won’t be any HRA deduction.
II. If staying in Rented house then deduction is allowed under section 10(13A) after submitting copy of Rent agreement and rent receipts.
III. There are three conditions, least of which is exempt Under Sec. 10(13A) of Income tax Act
a. Actual HRA Received
b. Excess of Rent paid over 10% of Salary
i.e. Rent Paid 20000 P.A.
Less 10 % of Salary (Excluding benefits and Perquisites) 10000 P.A
Total 10000 P.A.
c. 40 % of Salary (Excluding benefits and Perquisites)
(50% for Metro city)
2. What documents one has to take from employees as substantial proof to justify that they are staying in a rented accommodation?
Ans. : Copy of Rent Agreement and Rent Receipts.
3. Whether in Government Service, as per Service Rules, is it mandatory for the employee to inform the department/office regarding his residential address before getting HRA rebate?
Ans. : No if not necessary but one has to inform.
From India, Pune
Ans. :
I. If one is staying in his own house then there won’t be any HRA deduction.
II. If staying in Rented house then deduction is allowed under section 10(13A) after submitting copy of Rent agreement and rent receipts.
III. There are three conditions, least of which is exempt Under Sec. 10(13A) of Income tax Act
a. Actual HRA Received
b. Excess of Rent paid over 10% of Salary
i.e. Rent Paid 20000 P.A.
Less 10 % of Salary (Excluding benefits and Perquisites) 10000 P.A
Total 10000 P.A.
c. 40 % of Salary (Excluding benefits and Perquisites)
(50% for Metro city)
2. What documents one has to take from employees as substantial proof to justify that they are staying in a rented accommodation?
Ans. : Copy of Rent Agreement and Rent Receipts.
3. Whether in Government Service, as per Service Rules, is it mandatory for the employee to inform the department/office regarding his residential address before getting HRA rebate?
Ans. : No if not necessary but one has to inform.
From India, Pune
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